Comments on: Your Home Pays You Back with Reverse Mortgages

By: Tanesha

Tanesha — Thu, 11 Sep 2008 02:09:05 +0000

Reinder thanks for sharing the story of Jeanne Calment. I enjoy reading inspiring stories. I especially like the mention of her smoking until 117.

Anyway, this story reminds me of someone I met not long ago. I was at the dentist office and I struck up a conversation with the woman next to me.

I would have never asked her age, but she made a comment that that her granddaughter’s granddaughter was the the person who had brought her to the dentist’s office. Her granddaughter’s granddaughter?!? I thought how could that be… so I had to ask her age.

I could tell that she was old, but would not have imagined that she was 106! She was picking up her dentures. :-)

Her granddaughter’s granddaughter also had a child. How wonderful is it to live long enough to see five generations?

By: LAL

LAL — Thu, 11 Sep 2008 01:09:40 +0000

Reverse mortgages are a great idea for people who refuse to leave their homes but have no money.

Yes it’s better to downsize and sell but have you talked to people who refuse to do so? They are extra stubborn and refuse to do anything to help themselves.

So let them take out the fees, fees, fees. There are other options but usually they want to stay in the house.

By: Sam at Fix My Personal Finance

Sam at Fix My Personal Finance — Wed, 10 Sep 2008 06:36:17 +0000

One of the bigger disadvantages of this type of loan is when you want to leave your home to your heirs. The debt from the loan is passed on to them in the event you die. In most cases the home will need to be sold in order to pay off the reverse mortgage. Anything that is left over would go to them, but if you are looking to pass your home onto your heirs debt free, then this can be a major disadvantage and something you will really want to consider. Of course, if you have no immediate family then this is a moot point.

Despite its advantages, it is important to understand the disadvantages of a reverse mortgage so that you can make a more informed decision on whether this loan is right for you. These are only two of the major issues and you should further check into them before deciding whether to proceed further. Don’t get me wrong, this loan is very beneficial in the right circumstances. You just need to do your homework to know if you fit the criteria.

By: Dave

Dave — Wed, 10 Sep 2008 03:24:22 +0000

Another alternative if you are house rich but cash poor is to sell off anticipated equity growth to a company such as Rex Co. Here’s the link:
http://www.rexagreement.com/index.php

You don’t have to be a certain age. It would seem to work if you lived in one of the “high rent” cities of the U.S. such as San Francisco or New York.

By: Reinder Dijkhuis

Reinder Dijkhuis — Tue, 09 Sep 2008 20:15:05 +0000

Reverse mortgages worked wonderfully for Jeanne Calment, who got one when she was 90 and lived another 32 years.

By: Jim

Jim — Tue, 09 Sep 2008 18:27:05 +0000

I think a reverse mortgage may be a good idea in the situation where someone has limited retirement income. If you’re retired and having trouble getting by but own your home outright then I’d consider it. I don’t think inheritance should be a consideration either, supporting yourself in retirement takes precedent to leaving money to others.

As an alternative I’d also consider selling the home outright and then renting.

Jim

By: irina

irina — Tue, 09 Sep 2008 18:20:14 +0000

Reverse mortgage could be a solution when you are completely disabled and I mean totally and permanently disabled. My husband is totally and permanently disabled but he doesn’t have to go that route because he got me to support him.:-)

What about me? The first option for me, personally, will always be to look for a way to earn money. There are so many options to earn money now! Seniors should educated themselves about those money making options first. You have to do something all day anyway, why not earn a bit if you need the money!

My mom is 75 yeas old. She lives in Russia where they have less options than we have here, in US. Even she earns well for herself, as she likes to say, 5 times her Russian government pension! If a 75 years old woman can earn in Russia, there are certainly more opportunities here, in the US.

Reading, learning, talking to people, asking for advice, working for yourself, sticking with what you love and enjoy every minute of it is the key to live long and always have money to support yourself that long. :-)

By: mobody

mobody — Tue, 09 Sep 2008 16:21:19 +0000

My ex-father-in-law has a reverse mortgage. For him, it was a good resolution to a problem. When he retired at 63, he took a deal that would include benefits for his wife if he should die before her, but the pension payments were for a fixed period of time. Those benefits ran out two years ago, but his wife had a decent pension from the teachers union. Last year his wife died and all he has left is social security and his house.

He got a reverse mortgage. He has funds to last him a while longer. At 83, the money should be enough to keep him till he dies.

As for the kids inheritance? Yeah, they are pretty upset that they won’t be getting any, but both his sons are gainfully employed.

In my opinion, once you are out of college, or maybe even high school, what your parents give you is a gift, not a right.

By: WealthBoy

WealthBoy — Tue, 09 Sep 2008 13:52:21 +0000

I think a reverse mortgage is a good idea. I’ve told my parents they should consider it. They’ve spent enough time in their life working for my benefit and my brother’s, and it is time for them to think about themselves. They can’t take it with them and they deserve to enjoy what they’ve worked for rather than leave it to me. My brother and I are their legacy, not the possessions they will leave behind.