Quote:
Originally Posted by Dotneko
Sooo, if a couple has no children, wouldnt a reverse mortgage be a good deal? Asking for a friend......
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In most cases, if they need cash, they would be better off by taking out an 80 percent, 30 year conventional mortgage, put the money in the bank, and use it to make the monthly mortgage payments. If they are still in the house when the money in the bank is gone, they can refinance. With a reverse mortgage, they will only get about 50 percent of the house value, pay huge closing costs, and will be forced to sell the house if they need to move into assisted living. Do the math.