5

My wife (67) and I (72) are retired with an income of $70k/year and a savings of $30k. We have a loan of $300k with a mortgage payment of $1,786/month on a single family home valued at $600k. We spend all of our income so we are looking to convert our equity into cash to improve our quality of life.

One of the choices is to downsize. The other is a reverse mortgage.

Can anyone tell me what range of monthly income we would qualify for and how long that would last?

I understand that we are responsible for taxes and insurance and have to maintain the home as our principal residence.

Improve this question
25
  • 1
    It depends on interest rates. Your bank should be able to give you the information your question asks for. Commented Sep 19, 2018 at 7:03
  • i would be happy using an estimate of todays rates. Commented Sep 19, 2018 at 8:10
  • 4
    Do you understand how horrible a deal reverse mortgages are? Essentially you will be giving away about 1/3 of your equity. Commented Sep 19, 2018 at 14:31
  • 1
    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. Commented Sep 19, 2018 at 17:07
  • 1
    @Pete B. yes, i understand that it's a bad deal. Commented Sep 19, 2018 at 22:03

1 Answer 1

Reset to default
5

You can typically get up to 60% of the home value. Here is decent article on what to expect.

Reverse mortgage: What is it and how does it work?

It is your money and your equity, but I suggest that you do not get one. They are a terrible instrument that you can quite easily outlive.

Improve this answer
1
  • So since they have 50% equity, that means that they'd be able to get 10% ($60,000)? Commented Nov 2, 2018 at 23:10

You must log in to answer this question.

Start asking to get answers

Find the answer to your question by asking.

Ask question

Explore related questions

See similar questions with these tags.