reverse mortgages

paddy_99December 1, 2008

Is there a forum that deals with or has any info concerning reverse mortgages? I did a search and could find nothing of any help.

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chisue

It's been a topic on GardenWeb -- maybe try 'Buying and Selling Homes' forum?

My concern is that a homeowner be honest with him or herself about being physically able to live in the home for quite a long while. Is staying on THE best idea?

Setting up the reverse mortgage is costly; repairs to an old home may be expensive; and many people end up needing to move in a short time anyway.

    Bookmark   December 1, 2008 at 2:39PM
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joyfulguy

In the Canadian context, several have suggested that an owner might prefer to avoid the restrictions that are involved with a reverse mortgage (which often add difficulties to the borrower, who is unable to negotiate away from them). It is my understanding that only a few agencies offer them, which allows them to pretty well set the rules as they like.

I don't know what kind of mortgage (if any) that a retiree might be able to negotiate with a regular lending agency.

I'd be more inclined to at least investigate the possibility of negotiating a HELOC, with fewer restrictions, and the owner could draw funds at times and amounts as needed.

One negative aspect might be that the rate on a HELOC is usually variable, I think, which troubles some who prefer certainties.

On the other hand, an accountant friend of mine (fellow member of an investment study group) has borrowed substantial amounts and invested in several unit trusts, which avoid tax on themselves by paying out almost all of their earnings each year, which in a number of cases has been between 10 - 15% ... then my friend, who retired from a supplier of parts to auto manufacturers and lacks a pension, happily pays the 4.75% deductible interest cost that he must pay on the HELOC and uses the rest to live on.

I made a post over on the "Retirement" forum, a topic related to whether one might need to reconsider retirement, where I referred to a few of such unit trusts ... most related largely to western Canadian oil and gas extraction, mainly the tar sands aspect of it, I think.

ole joyful

    Bookmark   December 2, 2008 at 6:16AM
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jkom51

If you haven't learned to Google, you should. Try this site for your starting research, and good luck to you going forward:

Here is a link that might be useful: FAQ on reverse mortgages

    Bookmark   December 2, 2008 at 2:32PM
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