Reverse Mortgages

[BadgeBunny]

I cannot imagine a time or a place where a reverse mortgage would be a good idea for anyone.

 

[jmiller45]

What are some pros and cons of the reverse mortgage? I always joke and say that if I was getting to be senior age and my kids didn't treat me right that I would do a reverse mortgage and spend my money while I was a live. Just jokingly of course.

 

[bulbboy]

Dave Ramsey X 4

 

[inactive]

If she needs the money, she is better to sell the house, keep the cash, and pay rent. The fees and such are ridiculous.

 

[MaddSkillz]

Wow, I've sat in a room full of people like this, explained Reverse Mortgages to them and they had a complete change of tune after the meeting. I really don't understand why people make blanket judgments on something like this.

How is eliminating a house payment for a senior who can no longer afford it a bad thing? And where are people getting the idea that the equity is lost? Ever heard the phrase house rich but cash poor? That defines a lot of seniors today. What's wrong with a senior being able to live in their house and then using the equity in their house to improve their financial way of life? The only alternative (to stay in the home, and most seniors want to) would be to get a second home loan but then they'd have to make payments, so that doesn't help their monthly expenses at all and can compound the problem.

Are you all familiar with the growing line of credit?

This is one issue that David Ramsey is completely wrong on. I'd love to sit down with the guy and talk to him, but I'm a nobody.

So ask away, I'd love to answer your questions as it seems many of you have the wrong information.

 

[MaddSkillz]

If she needs the money, she is better to sell the house, keep the cash, and pay rent. The fees and such are ridiculous.

So there's no fee's involved in selling the house? What about moving? How much will that cost?

Seems like you're making some unfair comparisons. The reality is there's many fees involved in selling a home.

 

[MaddSkillz]

I cannot imagine a time or a place where a reverse mortgage would be a good idea for anyone.

You need to get out more.

 

[BadgeBunny]

You need to get out more.

That's funny ... I can't tell you how many times I have been asked why "they" let me out at all!!

So ... can you give me some instances where a reverse mortgage would be a good idea for someone??

 

[poopgiggle]

And where are people getting the idea that the equity is lost?

Erm, that's what a reverse mortgage is. That's not a criticism of the practice; that's what you're basically selling to the bank in your reverse mortgage.

Also the fact that you were comparing moving costs to reverse mortgage fees is pretty hilarious.

 

[BobBarker]

I thought on a reverse mortgage the company was betting against your untimely demise. If you make it to 100, you probably will have been paid back all of you equity plus some, and the reverse mortgage company will take a loss once they take possession and sell the house. Is that correct?