Home Forums Hunting & Shooting Hunter's Campfire reverse mortgage good and bad

It’s every expensive if you can do the math, but given the above I still am not clear what we are solving for. If you downsize w/o the RM will you not have freed up some cash? Do you need more before you start drawing SS?

An RM for a guy like you should be a last resort, you aren’t desperate and out of money.

Well, Tom Selleck says they are a good idea.

Were it me in your situation.....and I wanted to downsize, I'd sell the house and keep the equity myself. I'd then use that cash to buy the smaller place and likely have some leftover.

Reverse mtg is for when you want to stay in the current home, no?

Seriously, would it not be better to cash out and rent a place?

If the house is paid off, that's a loser. They're handing it out to a 3d party.

The acreage I own was part of a 120 acre ranch just the main home place. The other plots were sold off. The lady then had the 120 subdivided so her kids could all get 10-15 acres to put homes on. She sold the old home and 40 acres separate as it was on it's own well. Should have done fine after that but after putting in a small home and garage and gifting to much money to family her income was insufficient for her lifestyle. She got a reverse.mortage to supplement her income. When she died her son found out that her estate was gone if they didn't cough up 170k to keep the house. He had power of attorney and after laying it on the line to the rest of the family he sold the place in a hurry to come out a little ahead of it being repossessed. If you have family make them earn and borrow their own money if you want to leave an estate to heirs never get a reverse mortage. Pretty God damn simple no matter what QUIGLEY says..mb

I know a guy with a chain of restaurants that could not control his own cash flow.
A financial advisor sets up a retirement account that sends a monthly payment.
This is a high end example of the 62% of Americans that live paycheck to paycheck with no savings.


When I was in college in the 70s, I would show other students how to budget their summer job savings to last through a 9 month school year.
These were seemingly intelligent students, whose well off parents lived paycheck to paycheck.

cfran ..... in short....been to africa 1 time...going again in 25 . not cheap trips at all, think elephant etc. looking at spain , argentina.

those kind of trips are exspensive.....I am retired. so after those trips that's it.....an rm would expand my travel that's it.

or I can die with a paid off house .....cant take it with you....everyone's opinions on this are appreciated......bob

I kinda like that tom guy..lol...bob

I have done that once already...next house is it....bob

I see where JG Wentworth is working to expand into them, so that right there should be a red flag.

greg I don't need to do that.....bob

I agree...bob

Insurance, accident, liability,upkeep,utilites and taxes are still due.

yes... just like they are whether your house is paid for or not...bob

If someone is trying to sell you on the idea of a RM it’s probably not in YOUR best interest.

I picked up some furniture for my elderly cousin. She had bought it from a lady who was being evicted from the home she and her husband owned. Apparently she signed some paperwork along with her husband that ended the contract when he died. The outfit that furnished them the money did not make her aware of that provision and she being an elderly old Pentecostal lady did what her husband and the bank said for her to do without reading the contract.

Something like that should be unlawful. But people should always remember that you are holding the equivalent of dynamite when you are holding a pen.

I know a family that was put into bankruptcy when their adult son got into a motorcycle wreck and signed a document agreeing to pay. They were emotionally distraught at the ER and the boy was badly injured.

I would get with a really good mortgage broker who can do reverses etc and have them run the numbers for you. It boils down to the numbers.

It’s nice to paid off house but being house rich don’t don’t kill elephants.

problem is its me talking myself in or out of it...bob

and thus the deilima....bob