Is a reverse mortgage a good thing to do after your home is paid off?
BQ: Any bad things about getting one?
- sophiebLv 78 years agoBest Answer
As I know it it's based on repayment of what the house is worth today (what it would sell for today) and today homes have lost a lot of their value so you'd be getting less out of it monthly, plus there would be an administrative fee because people would be paying you back monthly, and there probably would be a fee for the paperwork from the start. So today I don't think it's a good thing unless you have no one to give the home and you're elderly and going into a nursing home within so many years and that nursing home wants to know all your assets, so I'd say in that case it would be best to wind down your home before you go into the nursing home or give them your home and let them wind it down for you and the money that comes out of the home would be for your keep at that nursing home.
The usual thing to do is to bring in a relative who would rent with you, or ten years before you become ill from age you sell the house to your son or daughter with the understanding (written contract) that you would be allowed to live in that home for free until your demise.
- SumDudeLv 78 years ago
The kinks are not worked out of the reverse mortgage market yet, and some providers are not necessarily the most honorable. Try to get a regular mortgage, or at least a Home Equity Line of Credit so that you still own your home and have more control over it (selling, refinancing, willing it to your children, etc).
- rpf5Lv 78 years ago
Go to the AARP website. (American Association of Retired People) They have a section devoted to it & can explain the pros and can of it better then l can.
- ?Lv 78 years ago
Only if you don't mind losing your home in 10 yrs. Once you no long have any equity the lender owns your home