Are reverse mortgages a good idea ?

9 Answers

  • 1 decade ago
    Favorite Answer

    please do anything but a reverse mortgage, they are bad news!

  • 1 decade ago

    A "Reverse Mortgage" is just one possible tool to consider when it comes to Estate Planning, but in my opinion there are many better ways to plan out your retirement.

    Anyway, here is the lowdown from the AARP web site.

    A "reverse" mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:

    * all at once, in a single lump sum of cash;

    * as a regular monthly cash advance;

    * as a "creditline" account that lets you decide when and how much of your available cash is paid to you; or

    * as a combination of these payment methods.

    No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older.

  • 1 decade ago

    It depends on your personal situation. If you are very healthy and it looks like you will live a long time a reverse mortgage may be a good idea. (This is something you need to spend a lot of time researching.) Go to the library and have the librarian help you find books on this topic. Also, shop around and get the best deal that you can.

    Good luck.

  • Anonymous
    1 decade ago

    Jack it depends on alot of financial factors, you should consult with an estate attorney before proceeding. It can be a benefit when you are older and have good equity in your home. It can be a nightmare for family left after you pass. So make sure you understand all the aspects of this mortgage and it fits into your financial picture.

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  • 4 years ago

    I suggest a real estate attorney be consulted as to how the children can buy the farm as contracts will be required to assure the children of making payments. I am a little amazed that the children are not helping out their parents knowing that when their parents past away, the farm will be theirs anyway, assuming that the parents are planning on leaving the farm to the children. Many legal questions need answers and a lawyer will certainly be needed.

  • 1 decade ago

    I would never do it. Basically, you are selling your house back to the bank, for a very cheap price. It is a great bargain for the lender.

    When you are dead and gone, so is your house.

  • Anonymous
    1 decade ago

    They are if you are in your late 80's and have no one to leave your estate too. So that being said, NO, THEY AREN"T!

  • 1 decade ago

    only if you really need it, or have no children,or unworthily children.And it depends on how old you are,most have to be over 65 years old.

  • 1 decade ago

    Only if you are old and expecting to die soon lol. It's true.

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