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Joined: Aug 2002
Posts: 37,931 Likes: 4
Campfire 'Bwana
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OP
Campfire 'Bwana
Joined: Aug 2002
Posts: 37,931 Likes: 4 |
I got a cousin and his wife up in Pennsylvania.
Both in their sixties, in poor health, considering a reverse mortgage, might free up funds for travel while they still can together.
What’s a downside?
"...if the gentlemen of Virginia shall send us a dozen of their sons, we would take great care in their education, instruct them in all we know, and make men of them." Canasatego 1744
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Joined: Jan 2002
Posts: 12,879 Likes: 5
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2002
Posts: 12,879 Likes: 5 |
The downside is very high fees, very high interest rates, and a shockingly high number of foreclosures, mostly due to people being unable to maintain the home as agreed or keep up with property taxes when the payments stop at about 75% of the value of the home.
Sic Semper Tyrannis
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Joined: May 2016
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Campfire Kahuna
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Campfire Kahuna
Joined: May 2016
Posts: 60,634 Likes: 31 |
The downside is very high fees, very high interest rates, and a shockingly high number of foreclosures, mostly due to people being unable to maintain the home as agreed or keep up with property taxes when the payments stop at about 75% of the value of the home. Okay, so besides those things....give us another good reason not to.
I am MAGA.
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Joined: Jan 2002
Posts: 12,879 Likes: 5
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2002
Posts: 12,879 Likes: 5 |
The downside is very high fees, very high interest rates, and a shockingly high number of foreclosures, mostly due to people being unable to maintain the home as agreed or keep up with property taxes when the payments stop at about 75% of the value of the home. Okay, so besides those things....give us another good reason not to. Tom Selleck flogs them on late night television?
Sic Semper Tyrannis
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Joined: Aug 2002
Posts: 37,931 Likes: 4
Campfire 'Bwana
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OP
Campfire 'Bwana
Joined: Aug 2002
Posts: 37,931 Likes: 4 |
Tks, I’ll pass that along.
I had thought about the maintenance issue, the reverse mortgage company get to dictate what gets fixed and when.
They do own the home outright, it’s paid off.
"...if the gentlemen of Virginia shall send us a dozen of their sons, we would take great care in their education, instruct them in all we know, and make men of them." Canasatego 1744
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Joined: May 2008
Posts: 488
Campfire Member
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Campfire Member
Joined: May 2008
Posts: 488 |
The downside is very high fees, very high interest rates, and a shockingly high number of foreclosures, mostly due to people being unable to maintain the home as agreed or keep up with property taxes when the payments stop at about 75% of the value of the home. Sounds like a winner to me! Where do I sign?
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Joined: May 2016
Posts: 60,634 Likes: 31
Campfire Kahuna
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Campfire Kahuna
Joined: May 2016
Posts: 60,634 Likes: 31 |
The downside is very high fees, very high interest rates, and a shockingly high number of foreclosures, mostly due to people being unable to maintain the home as agreed or keep up with property taxes when the payments stop at about 75% of the value of the home. Okay, so besides those things....give us another good reason not to. Tom Selleck flogs them on late night television? Is Robert Wagner still alive? Back when I had TV, he was selling the hell out of Reverse Mortgages. Kinda disappointing that Tom peddles them now....
I am MAGA.
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Joined: Feb 2006
Posts: 6,890
Campfire Tracker
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Campfire Tracker
Joined: Feb 2006
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Doesn't the family get stuck with the payoff after death?
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Joined: Jan 2002
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Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2002
Posts: 12,879 Likes: 5 |
Tks, I’ll pass that along.
I had thought about the maintenance issue, the reverse mortgage company get to dictate what gets fixed and when.
They do own the home outright, it’s paid off. One particular concern today is that the interest rates are almost always variable rates which will get them in a pickle quite quickly in the next few years. Might suggest they sell the home and move into a low maintenance rented little condo, and use the interest on the proceeds to fund the rent for much longer than the reverse mortgage would pay on their home.
Sic Semper Tyrannis
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Joined: Dec 2013
Posts: 23,686 Likes: 1
Campfire Ranger
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Campfire Ranger
Joined: Dec 2013
Posts: 23,686 Likes: 1 |
They should ease into it to see if it’s right for them. Maybe start with a title/payday loan or a high interest Indian reservation loan.
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Joined: May 2016
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Campfire Kahuna
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Campfire Kahuna
Joined: May 2016
Posts: 60,634 Likes: 31 |
Tks, I’ll pass that along.
I had thought about the maintenance issue, the reverse mortgage company get to dictate what gets fixed and when.
They do own the home outright, it’s paid off. One particular concern today is that the interest rates are almost always variable rates which will get them in a pickle quite quickly in the next few years. Might suggest they sell the home and move into a low maintenance rented little condo, and use the interest on the proceeds to fund the rent for much longer than the reverse mortgage would pay on their home. Heck yeah. Get one of them tiny homes and go travel.
I am MAGA.
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Joined: Jan 2002
Posts: 12,879 Likes: 5
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2002
Posts: 12,879 Likes: 5 |
Tks, I’ll pass that along.
I had thought about the maintenance issue, the reverse mortgage company get to dictate what gets fixed and when.
They do own the home outright, it’s paid off. One particular concern today is that the interest rates are almost always variable rates which will get them in a pickle quite quickly in the next few years. Might suggest they sell the home and move into a low maintenance rented little condo, and use the interest on the proceeds to fund the rent for much longer than the reverse mortgage would pay on their home. Heck yeah. Get one of them tiny homes and go travel. Aw, man, don’t be so obvious about trying to sell your sheep camp......  .
Sic Semper Tyrannis
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Joined: Oct 2021
Posts: 10,855 Likes: 3
Campfire Outfitter
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Campfire Outfitter
Joined: Oct 2021
Posts: 10,855 Likes: 3 |
Tks, I’ll pass that along.
I had thought about the maintenance issue, the reverse mortgage company get to dictate what gets fixed and when.
They do own the home outright, it’s paid off. One particular concern today is that the interest rates are almost always variable rates which will get them in a pickle quite quickly in the next few years. Might suggest they sell the home and move into a low maintenance rented little condo, and use the interest on the proceeds to fund the rent for much longer than the reverse mortgage would pay on their home. Solid advice here.^^
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Joined: Jan 2012
Posts: 67,266 Likes: 44
Campfire Kahuna
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Campfire Kahuna
Joined: Jan 2012
Posts: 67,266 Likes: 44 |
Get ya title back at Title Max
lol
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Joined: Oct 2013
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Campfire Ranger
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Campfire Ranger
Joined: Oct 2013
Posts: 18,935 Likes: 2 |
Doesn't the family get stuck with the payoff after death? Yep and if they don't have the funds the bank will own the house. Not much time to gather those funds either. Why not sell and move into a retirement community or assisted living community if in bad health?
The last time that bear ate a lawyer he had the runs for 33 days!
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Joined: Oct 2013
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Campfire Ranger
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Campfire Ranger
Joined: Oct 2013
Posts: 18,935 Likes: 2 |
They do own the home outright, it’s paid off.
It won't be once they sign off on the reverse mortgage.
The last time that bear ate a lawyer he had the runs for 33 days!
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Joined: Aug 2020
Posts: 1,889
Campfire Regular
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Campfire Regular
Joined: Aug 2020
Posts: 1,889 |
Get ya title back at Title Max
lol Dude is the white equivalent of Dave Chappelle, should of been a comedian.
Romans 5:1
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Joined: Dec 2005
Posts: 4,185
Campfire Tracker
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Campfire Tracker
Joined: Dec 2005
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It is a fast route to destitution.
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Joined: Mar 2010
Posts: 24,291 Likes: 12
Campfire Ranger
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Campfire Ranger
Joined: Mar 2010
Posts: 24,291 Likes: 12 |
yep much better advice Tks, I’ll pass that along.
I had thought about the maintenance issue, the reverse mortgage company get to dictate what gets fixed and when.
They do own the home outright, it’s paid off. One particular concern today is that the interest rates are almost always variable rates which will get them in a pickle quite quickly in the next few years. Might suggest they sell the home and move into a low maintenance rented little condo, and use the interest on the proceeds to fund the rent for much longer than the reverse mortgage would pay on their home.
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Joined: Feb 2009
Posts: 4,857 Likes: 5
Campfire Tracker
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Campfire Tracker
Joined: Feb 2009
Posts: 4,857 Likes: 5 |
My folks did a reverse mortgage awhile back before my mother died. They signed on the line because they hadn't planned to live as long as they did so they ran out of money. If they would have sold their house when the market was up they would have ended up with 60-70% more money than they did with the reverse mortgage and sale of their house. Tell your relatives a better option would be to sell their place, bank the money and rent, move to a cheaper market, whatever, but keep the banks out of it.
“Some ideas are so stupid that only intellectuals believe them.”
― G. Orwell
"Why can't men kill big game with the same cartridges women and kids use?"
_Eileen Clarke
"Unjust authority confers no obligation of obedience."
- Alexander Hamilton
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