Reverse mortgages

[Michael11]

... it would be better to just sell at less than the home value....

That's my plan in the next few years. Sell the sticks & bricks for whatever I can get, and get on with it. I have no need for the "security of a place" and no desire to return (except maybe to visit friends) once I am finally out. I no longer want to live where I am now and would prefer some place where the local attitudes more closely match mine.

 

[eDJ_]

Lefty wrote:

Anybody have thoughts or advice on reverse mortgages?
65 y/o single male with no debt, no heirs, own home out-right.
House needs some work but should appraise for around 80K when I'm ready in 18 to 24 months.

I served on a Credit Union for awhile and saw many a disaster from "reverse mortgages", and a few very lucky folks that the things served fairly well. Most were of the opinion that it was just luck. The credit union made numerous loans to help get people out of those things and even held some seminars explaining to share holders why not to go down that road.

What I would offer via way of explanations ?

From Experion:

What Is the Downside of a Reverse Mortgage?

A reverse mortgage comes with several downsides, such as upfront and ongoing costs, a variable interest rate, an ever-rising loan balance and a reduction in home equity. In light of those drawbacks, homeowners considering a reverse mortgage should weigh the alternatives, such as refinancing an existing mortgage or taking out a home equity loan.

The Motley Fool:

What Suze Orman Has to Say About Reverse Mortgages

• For many, reverse mortgages are anything but easy.
• Reverse mortgages may be best for homeowners who have paid off their mortgage in full.
• Homeowners remain responsible for ongoing expenses, like taxes, insurance, maintenance, and repairs.

What is a Reverse Mortgage ? David Ramsey or Ramsey Solutions

Thinking of getting a reverse mortgage? Bad idea. Reverse mortgages sound like a good plan—after all, who wouldn’t want a dream retirement funded entirely by their house! But here’s the truth: Reverse mortgages are major rip-offs.

Day Air Credit Union

5 Things You Need to Know About Credit Life Insurance

What happens if you would die and have heirs you would like to leave some of your estate to ?

If you have a large amount of equity in your home, it might be a good choice to use a reverse mortgage to fund your life insurance policy. This would give you control over - and help retain the value of - your estate for the benefit of your heirs

If there are no co-borrowers or an eligible non-borrowing spouse, your heirs will need to pay the full loan balance to keep the home. To sell it, they would need to repay the full loan balance or at least 95 percent of its appraised value if the loan balance owed is more than the home value

Credit life insurance on a Reverse Mortgage may be difficult to find just the same. But there are other life insurance schemes that may accomplish the same ends just the same. But you should consider finding a qualified financial planner who has no interest/friends/relatives who sell insurance to assist you with this. I would suggest to avoid those who are eager to assist you who have a product or otherwise financial instruments to sell. Their helpful service may serve them better than you. I would suggest getting such an insurance policy in place while still in your home and not your Nomadic plans . (otherwise they may figure you will be renting the house, receiving Reverse Mortgage monies, and living on the road making money off the venture)