Comments on: Should I Take Out A Reverse Mortgage On My House? http://www.myinvestingblog.com/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/ Teach Your Money To Think! Fri, 10 Feb 2012 18:37:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Chris http://www.myinvestingblog.com/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-432 Chris Wed, 09 Apr 2008 05:21:47 +0000 http://myinvestingblog.com/2008/01/08/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-432 Hank, Jim brings up all the benefits of a reverse mortgage. The biggest downside for the senior is the fact that their estate for their heirs will be smaller than they hoped. Most people choosing a reverse mortgage is because the senior needs to tap the equity in the largest asset that they have. I had one client that needed to do a reverse mortgage so that he could pay for daily nursing. He didn't want to sell his home and then move into a nursing home. This was a lifestyle choice he made. Remember too that not everyone qualifies for these types of loans. If you have a lot of debt on the property now the likelihood of a reverse mortgage working for you is not that great. It's a good solution for the right person. Hank, Jim brings up all the benefits of a reverse mortgage. The biggest downside for the senior is the fact that their estate for their heirs will be smaller than they hoped.

Most people choosing a reverse mortgage is because the senior needs to tap the equity in the largest asset that they have. I had one client that needed to do a reverse mortgage so that he could pay for daily nursing. He didn’t want to sell his home and then move into a nursing home. This was a lifestyle choice he made.

Remember too that not everyone qualifies for these types of loans. If you have a lot of debt on the property now the likelihood of a reverse mortgage working for you is not that great.

It’s a good solution for the right person.

]]> By: hank http://www.myinvestingblog.com/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-431 hank Thu, 10 Jan 2008 19:25:56 +0000 http://myinvestingblog.com/2008/01/08/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-431 @Jim - Andrew is the guy that wrote that piece, my name is Hank and I actually live in the US, just quoting an Australian post. :) Thanks for the comment! much appreciated, but at the same time, don't you think there are better ways to invest a seniors money? I understand it is a way to take out a piece of the pie they've already invested, but do most people come to you because they're running into their last options? What else do they invest in at the same time as their reverse mortgage? @Jim – Andrew is the guy that wrote that piece, my name is Hank and I actually live in the US, just quoting an Australian post. :)

Thanks for the comment! much appreciated, but at the same time, don’t you think there are better ways to invest a seniors money? I understand it is a way to take out a piece of the pie they’ve already invested, but do most people come to you because they’re running into their last options? What else do they invest in at the same time as their reverse mortgage?

]]> By: Jim http://www.myinvestingblog.com/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-430 Jim Wed, 09 Jan 2008 14:46:01 +0000 http://myinvestingblog.com/2008/01/08/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-430 Andrew, I don't know how it is in Australia but in the United States reverse mortgages are available for homeowners 62 and older and in a lot of cases is not the last resort to financial independence. With a reverse mortgage in United States you cannot outlive your entitlement, you maintain ownership of your home and you cannot be evicted. Only the Big Guy can do that. Now if you fail to pay your taxes, that's a different story and it won't be the reverse mortgage that puts you out of your home. The reverse mortgage was designed for seniors to age place. The reverse mortgages a tool that can be used for many circumstances. They have been used to pay off existing forward mortgages to stop that monthly payment and make life a little easier. They have stop the foreclosure procedure. They have been used to set up credit lines that are used for health reasons, home repair and fix up, buy a new-car, take a vacation. There is no repayment on a reverse mortgage until you either sell your home, it is no longer your primary residence for 12 months or more, as in going into a nursing home, or you pass away. As I said before if you don't pay your taxes it won't be the reverse mortgage coming after you, so as long as you pay your insurance pay your taxes you stay in your home till death do you part. In all the years that I've been doing reverse mortgages I've only had a few people ask me about a repayment plan, there is none. The loan can be repaid at any time though. The reverse mortgage does not require payments to be made. The payments come to the senior not from the senior. That is the beauty of the reverse mortgage, the home that they have paid into over the years can now pay them back in their retirement. This turns the home into a performing asset rather than a nonperforming asset. I have done reverse mortgages for people that have a large existing mortgage to be paid, and at times have had customers come to the table with money in addition to the reverse mortgage funds to pay off the mortgage and not have any more payments. This gives them the extra income needed to make their lives more enjoyable in their retirement. They no longer have a house payment. When I do reverse mortgages I always recommend the credit line method of payment. The advantages are, the money is available when needed, and there's no interest charged on the money that is not used. FHA also gives them a growth rate on the money left in the credit line. The credit line growth rate is like interest but is nontaxable. Hope this clears up a few things. <a href="http://www.MyFloridaReverse.com" rel="nofollow">Reverse Mortgages information</a> Andrew, I don’t know how it is in Australia but in the United States reverse mortgages are available for homeowners 62 and older and in a lot of cases is not the last resort to financial independence.
With a reverse mortgage in United States you cannot outlive your entitlement, you maintain ownership of your home and you cannot be evicted. Only the Big Guy can do that. Now if you fail to pay your taxes, that’s a different story and it won’t be the reverse mortgage that puts you out of your home. The reverse mortgage was designed for seniors to age place.
The reverse mortgages a tool that can be used for many circumstances.
They have been used to pay off existing forward mortgages to stop that monthly payment and make life a little easier.
They have stop the foreclosure procedure.
They have been used to set up credit lines that are used for health reasons, home repair and fix up, buy a new-car, take a vacation.
There is no repayment on a reverse mortgage until you either sell your home, it is no longer your primary residence for 12 months or more, as in going into a nursing home, or you pass away.
As I said before if you don’t pay your taxes it won’t be the reverse mortgage coming after you, so as long as you pay your insurance pay your taxes you stay in your home till death do you part.
In all the years that I’ve been doing reverse mortgages I’ve only had a few people ask me about a repayment plan, there is none. The loan can be repaid at any time though. The reverse mortgage does not require payments to be made. The payments come to the senior not from the senior. That is the beauty of the reverse mortgage, the home that they have paid into over the years can now pay them back in their retirement. This turns the home into a performing asset rather than a nonperforming asset.
I have done reverse mortgages for people that have a large existing mortgage to be paid, and at times have had customers come to the table with money in addition to the reverse mortgage funds to pay off the mortgage and not have any more payments. This gives them the extra income needed to make their lives more enjoyable in their retirement. They no longer have a house payment.
When I do reverse mortgages I always recommend the credit line method of payment. The advantages are, the money is available when needed, and there’s no interest charged on the money that is not used. FHA also gives them a growth rate on the money left in the credit line. The credit line growth rate is like interest but is nontaxable.
Hope this clears up a few things.

Reverse Mortgages information

]]> By: hank http://www.myinvestingblog.com/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-429 hank Wed, 09 Jan 2008 04:44:22 +0000 http://myinvestingblog.com/2008/01/08/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-429 Hey Aaron - Yea, that's what I've found also; my mother has enough FAMILY that she should be alright. Unfortunately I can see it from the other side of the coin too in the fact that some people just don't have the family, nor the family FUNDS to put off the "last resort type of option." It's sad, but true... Thanks for the post. Hey Aaron – Yea, that’s what I’ve found also; my mother has enough FAMILY that she should be alright. Unfortunately I can see it from the other side of the coin too in the fact that some people just don’t have the family, nor the family FUNDS to put off the “last resort type of option.” It’s sad, but true… Thanks for the post.

]]> By: Aaron Stroud http://www.myinvestingblog.com/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-428 Aaron Stroud Tue, 08 Jan 2008 16:16:22 +0000 http://myinvestingblog.com/2008/01/08/should-i-take-out-a-reverse-mortgage-on-my-house-what-is-a-reverse-mortgage/#comment-428 Hank, reverse mortgages really are a last resort type option, especially when the elderly have kids to help make life a little easier. Unfortunately, I think the trend is going to continue because most people did not save enough to take advantage of the wonderful advances from the past fifty years or so. Most people saved like it was the 1800s and they were just going to buy food in their final years. However, they still want to have all of the expensive, modern conveniences... Even our own state has embraced this trend and is now <a href="http://www.libertylive.org/blog_main/post.php?post_id=206" rel="nofollow">preying on the middle class and the elderly</a> via excessive property taxes. Last fall WA state voted to create a program where you can delay your property taxes until you sell or die, instead of reducing the tax to a more reasonable and manageable level! Hank, reverse mortgages really are a last resort type option, especially when the elderly have kids to help make life a little easier.

Unfortunately, I think the trend is going to continue because most people did not save enough to take advantage of the wonderful advances from the past fifty years or so. Most people saved like it was the 1800s and they were just going to buy food in their final years. However, they still want to have all of the expensive, modern conveniences…

Even our own state has embraced this trend and is now preying on the middle class and the elderly via excessive property taxes. Last fall WA state voted to create a program where you can delay your property taxes until you sell or die, instead of reducing the tax to a more reasonable and manageable level!

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