Quote:
Originally Posted by retiredguy123
I am not an expert on reverse mortgages. However, they are very strongly pushed by advertising primarily because of the high upfront fees and interest rates. And, yes, you can buy a $250k house with $150k and get a reverse mortgage. However, if you need to move out of the house due to health issues, the lender will require that the house be sold, and you could end up losing much or your money. I think it is a better option to buy the house with a conventional 80 percent loan, and use the remaining cash to make the monthly payments. That is, assuming you can qualify for a conventional loan. Another option is to rent. Just my opinion.
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I have a reverse mortgage on a CYV appraised this year for $237K at the time of the loan in April, my upfront fees were $9,000. All that does is it's deducted from the amount you can withdraw. That's it, there is money I have readily available that doesn't cost me a thing and all I have to worry about is $9,000 if I ever want to move.
The part about moving out of a home because of sickness, what are the options. Most I know are very expensive, nursing homes, assisted living homes, etc. Even independent living places like Sumter Place start at $3500 a month. My mother was in a nursing home, it cost $6600 a month. That's $75,000 a year. I think I'll try and stay healthy, go to the gym, not eat too much, and watch my weight, and stay in my home which is free and it provides money whenever I need it.