Timeline for How much money could we get with a reverse mortgage?
Current License: CC BY-SA 4.0
Post Revisions
32 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Sep 7, 2024 at 15:47 | comment | added | user3404 | @jamesqf there is not an absolute guarantee that the mortgagor gets to stay in the house until death. They have to meet the terms of the mortgage. One common requirement is that they must continue to pay property taxes, HOA dues, and homeowners insurance. They also have to maintain the property. If money is tight and they underestimate their longevity they could end up on the street. naplesnews.com/in-depth/news/investigations/2019/06/11/… | |
| Sep 7, 2024 at 6:50 | history | protected | CommunityBot | ||
| Nov 3, 2018 at 23:11 | vote | accept | Ray Tayek | ||
| Sep 21, 2018 at 16:36 | comment | added | jamesqf | @zeta-band: Re "But if you die before it is all used up, the amount you get...", I think one of us is missing something important here, which is that after you're dead, you're in no position to care about how much you get. So the trade is realizing at least part of the equity in the home (and being free of mortgage payments) while you're still alive to enjoy it, versus dying with a major capital asset. | |
| Sep 21, 2018 at 0:22 | comment | added | Ray Tayek | @Beanluc - how else to take advantage of our equity? maybe a heloc would be a reasonable choice? but that would force us to sell when we used it up. | |
| Sep 21, 2018 at 0:11 | comment | added | Ray Tayek | @jamesqf - that is my understanding also. | |
| Sep 21, 2018 at 0:08 | comment | added | Ray Tayek | @JoeTaxpayer - we have some long term care insurance for 10 years. | |
| Sep 20, 2018 at 17:06 | comment | added | jamesqf | @Ray Tayek: OK, maybe not "forever", but the term can be longer than your reasonable life expectancy. (Unless you happen to be Jean Calment :-)) If you do wind up living longer than the mortgage term, you still get to live in the house while only paying taxes &c, just as if you owned it outright. | |
| Sep 20, 2018 at 16:59 | comment | added | zeta-band | @RayTayek My mom started it 10 years before she deceased and that was much too early. I would only do it once there was some idea of when the end was. | |
| Sep 20, 2018 at 16:57 | comment | added | zeta-band | @jamesqf The lender takes the interest on the money taken this year and adds it into the amount you owe that they calculate interest on next year. If you actually get the value of the house in payouts, you win. But if you die before it is all used up, the amount you get after the sale of the house minus the amount you owe is smaller than the amount you would have gotten had you not owed interest on the interest. | |
| Sep 20, 2018 at 15:46 | comment | added | Fattie | @jamesqf - if I'm not mistaken, that's totally incorrect. You're describing a sort of insurance thing. A reverse mortgage is nothing more than a mortgage (and the payment is just made out of the capital). Note: "I think" maybe it's different in the US or something. | |
| Sep 20, 2018 at 12:01 | history | tweeted | twitter.com/StackFinance/status/1042745454256168960 | ||
| Sep 20, 2018 at 9:36 | comment | added | JoeTaxpayer♦ | @RayTayek - understood. I'd strongly suggest you look into the rules regarding nursing homes. With your income, you are not likely to get much (if any) Medicaid help. | |
| Sep 20, 2018 at 8:08 | comment | added | Ray Tayek | you don't get x$ forever, it will run out. also, interest gets added to the loan amount, so equity can go to zero. | |
| Sep 20, 2018 at 5:57 | comment | added | jamesqf | @zeta-band: How exactly does a reverse mortgage "eat up the value of the house"? As I understand them, the lender pays you $X per month for the rest of your life (or you and spouse), then gets the house when you die. It's fundamentally the same as an annuity: they're gambling that you (or rather the whole population of borrowers) die in accordance with actuarial expectations. Sure, when you die, you lose the house, but what does that matter? | |
| Sep 20, 2018 at 4:02 | comment | added | Ray Tayek | @JoeTaxpayer - i live in lakewood, a suburb of los angeles. so no way is there a house we can buy outright. i'm trying to compare maybe 60% of my equity by getting x$/month for y years and then nothing until we both die or need to go into a nursing home vs getting all of my equity and relocating. | |
| Sep 20, 2018 at 0:28 | comment | added | JoeTaxpayer♦ | @RayTayek - are you in an area (or willing to move to an area) where a $275-$300K home would be sufficient? | |
| Sep 20, 2018 at 0:24 | comment | added | Ray Tayek | @zeta-band how early would be too early? | |
| Sep 20, 2018 at 0:23 | comment | added | Ray Tayek | @Harper - i have no idea. | |
| Sep 19, 2018 at 23:43 | comment | added | zeta-band | Reverse mortgages can be wonderful in the last few years of life as a way to stay in your house in your final illness and provide cash for your care. Taken too early, they eat up the value of the house in the way that interest is calculated and are a very bad deal. | |
| Sep 19, 2018 at 22:37 | comment | added | Beanluc | "We have a loan of $300k with a mortgage payment of $1,786/month" Borrowing more money to service this existing debt just seems like utter insanity. | |
| Sep 19, 2018 at 22:03 | comment | added | Ray Tayek | @Pete B. yes, i understand that it's a bad deal. | |
| Sep 19, 2018 at 20:52 | answer | added | user76763 | timeline score: 5 | |
| Sep 19, 2018 at 18:40 | comment | added | Harper - Reinstate Monica | What is your planned lifespan? | |
| Sep 19, 2018 at 17:25 | comment | added | jamesqf | Searching for "reverse mortgage calculator" gives about 6.6 million hits. @Pete B: Why is it a bad deal, assuming the OP & spouse want to stay in the same house for the rest of their lives? | |
| Sep 19, 2018 at 17:07 | comment | added | Bob Baerker | If you want to know how much monthly income you can obtain from a reverse mortgage, contact the agencies that offer them. They will happily provide you with an estimate, including how much of your equity they are going to take from you. If I recall correctly, I think that I have seen online sites that will generate these estimates. | |
| Sep 19, 2018 at 14:31 | comment | added | Pete B. | Do you understand how horrible a deal reverse mortgages are? Essentially you will be giving away about 1/3 of your equity. | |
| Sep 19, 2018 at 12:18 | history | edited | Bob Baerker | CC BY-SA 4.0 |
deleted 11 characters in body
|
| Sep 19, 2018 at 8:10 | comment | added | Ray Tayek | i would be happy using an estimate of todays rates. | |
| Sep 19, 2018 at 7:03 | comment | added | Lawrence | It depends on interest rates. Your bank should be able to give you the information your question asks for. | |
| Sep 19, 2018 at 6:55 | review | First posts | |||
| Sep 19, 2018 at 12:37 | |||||
| Sep 19, 2018 at 6:55 | history | asked | Ray Tayek | CC BY-SA 4.0 |