Quote:
Originally Posted by retiredguy123
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.
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What bank will loan to a retiree with no income other than ss? The banks we spoke with didnt care how much cash on hand we had. With no income, no mortgage.
The closing costs for a reverse werent huge either.