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Old 03-15-2006, 02:24 PM   #1
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Default Reverse mortgages???

I keep seeing reverse mortgages on TV. Anybody know how they work?
Do ya keep the property till ya die? Or do they just wheel you out to the curb for the county to pick up when the payments to you are over.Have several properties and wondering. Getting Rent and a Mortgage payment on property sounds like a good thing. ........Grampa wants a Speedboat!
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Old 03-15-2006, 02:45 PM   #2
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Is it the same as a home equity loan? If you own your house, ie no more mortgage payments, you can take out an interest free loan for a certain amount based on the value of your house.

So if your house is worth $250 000 and you own it clear, you could take out a loan against the value of the house for say...$100 000

You owe nothing until you move or sell the house.
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Old 03-15-2006, 03:15 PM   #3
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I don't think that is the wisest thing to do unless you have no family. Most people want to leave an inheritence to their kids, or in my case- I will get the house when the time comes if I don't die first.
A reverse mortgage pays you so much based on the equity in your house and take out a percentage but you would still have to pay some type of payment on the loan. If you have family and they want the property they will have to come back and pay that mortgage back.
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Old 03-15-2006, 04:13 PM   #4
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Reverse mortgages are exactly as you described, gxp. However, the one exception is that you have to be age 65 or over to qualify. And you have to have a minimum of 80% equity in your home.

It works out to be a "payment" a month of equity out of your home, less an interest charge.

I would never do it, either. When I need cash, I sell one of my investment properties.
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Old 03-15-2006, 08:45 PM   #5
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I understand that Vital and thanx everbody.Well the age limit sucs and if I sell houseoutright /TAXES. Hard enough living on savings and some from retirement I really cant touch for years without serious tax problems. Just trying to be creative as I'm only 51. 63 is a ways off.....and I'm at a age where I think I'm gonna get snagged into waiting till 69. maybe I should consider Carrying two mortgagesmyself.
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Old 03-15-2006, 10:21 PM   #6
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Buy more investment properties to create the needed cash flow.
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