Reverse Mortgage
- Thread starter walleye
- Start date
- 2,623
Google it. You'll find plenty of places that explain it and plenty of places that offer it.
I checked it out for myself a while back and found that you don't get much of a loan after fees, costs, limitations, and under-appraising of the property.
I own my house free and clear and I intend to keep it that way.
I suggest that your parents consider doing the same.
I checked it out for myself a while back and found that you don't get much of a loan after fees, costs, limitations, and under-appraising of the property.
I own my house free and clear and I intend to keep it that way.
I suggest that your parents consider doing the same.
Jeepers it never ceases to amaze me how certain folks on here talk in such absolutes without even addressing the actual question that is asked.
Here is a decent hopefully unbiased starting point, Walleye - Reverse Mortgages
Once I looked into reverse mortgages and saw past the hype, I wondered why one couldn’t just do a cash-out refi if you needed cash.
- 11,274
And more "advice" from someone not licensed or qualified to give any - other than their personal experience.
I don't know why you're referencing or researching reverse mortgages, and what you're thinking about - because that would certainly help.
Regarding reverse mortgages, I am far more of a fan of a reverse mortgage line of credit - where the UNUSED portion grows the credit limit at a stated rate of interest REGARDLESS of the value of the home. It starts at about 50% of the home's value (minus any remaining mortgage liability) and can grow indefinitely over time. In this case, the earlier you get it, the more the unused portion can grow.
A reverse mortgage can be used:
1 - a tax-free resource for cash flow,
2 - help with long term health costs,
3 - bridge the gap for social security retirement income benefit planning,
4 - use it for income needs when there is significant stock market volatility (so you don't cause reverse dollar-cost-averaging in a retirement portfolio and you can wait it out for the market to rebound),
5 - use it for income upon the death of the first spouse - particularly for the loss of social security retirement benefits, or other needs.
This is a powerpoint designed for advisor use where it talks about the various kinds of reverse mortgages and how you can use it strategically.
http://www.financialpro.org/public/docs/reverse0309.pdf
Note: If they are insurable, and if they choose to get a reverse mortgage, you may want to consider a non-lapse GUL policy with living benefits to be paid by the same money that would've paid for a mortgage. This would be better money to use for long-term health costs if needed AND, if not needed for health needs... it could help to pay off any balance on the reverse mortgage at death.
- 11,274
Because in retirement, you really need a JOB to qualify for higher mortgage balances.
- Thread starter
- #7
- 11,274
There are many places you can go for information on reverse mortgages. I am partial to HECM Advisors Group only because Don Graves is an associate professor at The American College teaching reverse mortgage strategies.
They can refer a reverse mortgage consultant local to you.
Home - HECM Advisors Group
About Don Graves, RICP®, CRMS - HECM Advisors Group
They can refer a reverse mortgage consultant local to you.
Home - HECM Advisors Group
About Don Graves, RICP®, CRMS - HECM Advisors Group
