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In reply to the discussion: I'm considering a reverse mortgage on my house. Anybody here have one, or know something about them? [View all]
Big Blue Marble
(5,493 posts)18. I am a CPA and do not recommend reverse mortgages.
The front end costs are closing costs not taxes. You will still be responsible for
your taxes and insurance though and falling into arrears will trigger foreclosure. You will receive a
portion of your equity and the mortgage holder will busily take the rest through
interest and fees.
The most important consideration in your decision is that you are giving up control of
your home. If you feel that a reverse mortgage is your best option, educate yourself
to make sure you understand the tricks and traps of obligating yourself to a reverse
mortgage.
https://www.investopedia.com/biggest-mistakes-reverse-mortgages-5225608
l
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I'm considering a reverse mortgage on my house. Anybody here have one, or know something about them? [View all]
CTyankee
Oct 2024
OP
We are in our 80s and hubby is handicapped. No, we don't have accommodations for renting a room.
CTyankee
Oct 2024
#4
Yes, he is. My tax guy is not; he's solid and can give me good advice. I don't think we are his first clients who have
CTyankee
Oct 2024
#6
The money he borrowed accumulated interest to the point where there was no equity in the house. He died and left
OLDMDDEM
Oct 2024
#10
We don't have kids from this marriage. Neither his nor my kids would even want it and would consider it to be a pain in
CTyankee
Oct 2024
#12
I understand your points. There are up front fees also. My neighbor's fees were about 15% of the borrowed amount.
OLDMDDEM
Oct 2024
#13
That seems like a lot. I don't know CT's tax in my case. Again, a question for my accountant who is very familiar with
CTyankee
Oct 2024
#14
Yes, reverse mortgages are part of the array of strategies by the wealthy
Big Blue Marble
Oct 2024
#19
The key thiing here is that we get to stay in our house. The escrow amount just went up A LOT.
CTyankee
Oct 2024
#20
I am going to the bank that holds our mortgage to discuss this with them. They might have an idea for us.
CTyankee
Oct 2024
#22
If you've owned your house for 25 years, it must be worth a whole lot more than you paid for it!
Vinca
Oct 2024
#23
We did consider it but we love our home and want to stay in it for as long as we can.
CTyankee
Oct 2024
#25
I have not done it, but I am extremely suspicious. Do your research. Depending on your state, you may be..
surfered
Oct 2024
#26
If you run the numbers they aren't as predatory as they might seem (assuming the bank is reputable)
Shermann
Oct 2024
#28
Reverse mortgages are not terrible if you can get over some psychological hurdles
MaryMagdaline
Oct 2024
#29
I don't know if they have changed since I did mortgages but I did not recommend them to any clients.
Bev54
Oct 2024
#31