Reverse Mortgages

jhnny_greene asked:


We see the commercials on tv encouraging our elder citizens to take out a reverse mortgage on their home. They will receive a monthly amount and not have to pay any more notes on the house. If they do this they cannot pass this property on to their children. Just wondering what others think about this.

2 Responses to “What do you think of reverse mortgage?”

1. shiprepairwoman Says:
   May 24th, 2009 at 12:05 pm

   They can pass the home on but it will have a very expensive mortgage they will need to refinance. For most people it isn’t worth the cost. You must be over 62 and the older you are the more you get a month. If you have a mortgage some goes to pay that off. The cost of the mortgage is about 15K plus you are borrowing every month and paying interest. You can only borrow on about half the equity. So if you were 70 and decided to take one you would have the cost plus what ever you borrowed. When you are 75 you might decide to downsize. When you sell the house you have to pay back all that borrowed money. You might not be able to buy a new home or might not sell for enough to pay off the debt and live on the money from the house.
   If you are elderly and determined to stay in the home until carried out feet first and need money for medicine it might not be a bad idea.

2. Lord Percy Wooster IV Says:
   May 26th, 2009 at 1:28 am

   I had a job in a lender where I had to ring up each year to see if they were dead. i would pretend i was asking about their insurance and they would get angry and say I told you.

   well it depends on if it was my house or the person going to inherit the house