I've been to two presentations for reverse mortgages. I have not been able to figure out the real downside to this, does anyone have any negative experiences, or regrets, about having set up a reverse mortgage? Thanks.
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I've been to two presentations for reverse mortgages. I have not been able to figure out the real downside to this, does anyone have any negative experiences, or regrets, about having set up a reverse mortgage? Thanks.
You can find good info on the AARP website: www.aarp.org, search "reverse mortgage".
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Posted in reply to the post by Dustyg:
As far as I know, the only downsides are that you see your hard-earned equity gradually slipping away, and you have little or nothing left to bequeath to your heirs. In addition, you see the bank that you may despise gaining ownership over your home. I find that depressing.
--Richard Hoff
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Posted in reply to the post by Dustyg:
Go to this link to see Clark Howard's latest concerns about reverse mortgages: https://www.clarkhoward.com/news/cla...s-stay-t/nFp5/
(For those who may not know, Clark Howard is probably the best consumer advocate broadcast person ever. His show runs early evening weekdays on KSRO. His website is a trove of useful information.)
I am not an expert, but I think reverse mortgages can be useful if you are having some financial hardship, but research them carefully and compare offers.
I think the best way to use them is just to pay off any balance you have on your house, so you can then stop making mortgage payments. I think it is dangerous if you start using them to take out additional money. Pretty soon, you can eat up all the equity in your house. I suppose it's something you can do if you're desperate for cash, but really only as an absolute last resort. (This is, essentially, what Clark Howard's article says).
Be real careful what fees they are going to charge you and comparison shop-- they often charge high fees figuring they're just going to bundle it all into the loan amount and you won't care that much or be paying much attention.
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Posted in reply to the post by Dustyg:
Don't do it...
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Posted in reply to the post by Philip Tymon:
Any particular reason why?Quote:
Posted in reply to the post by Praksys:
Not that I'm in the position to take advantage of this, however with no heirs or children to leave my assets to, I would consider it an option, simply because "I can't take it with me".
Hi Everybody ~
I've been writing a blog for a reverse mortgage education and training company (that is, they are not lenders; they train the reverse mortgage professionals) for almost a year, and have learned a lot in the process. Feel free to read, watch some of my client's videos, and even email him with Qs:
HECMWorld
The company also has a consumer site that I've just begun blogging for as well:
Reverse Mortgage Info
This site addresses a lot of common misconceptions about reverse mortgage, such as those discussed here.
Hope it's helpful!
Blessings,
Amara