Reverse Mortgages

[Bruce Cohen]

As I ungratefully age, I've been intrigued by the thought of a reverse mortgage.

Unfortunately, I'm totally ignorant about anything financial (maybe that's why I have no money).

On face value, it sounds too good to be true, and stuff life that usually turns out to be just that.

If anyone has experience or knowledge about this, I'd really appreciate you sharing what you know with me.

Thanks in advance,


Bruce

[JR]

Bruce, I've read a few articles about this, but have not had a reverse mortgage loan. I'd say it's sort of like a home equity loan.

It really is not "too good to be true". You'll find it's a lot like a regular loan, in that you'll probably be able to take have a mortgage equal to maximum 80% of the value of the property. So if you own outright a house valued at $200,000, you'd be able to get a reverse mortgage up to $160,000. When you die, the property would devolve to the lender. I believe you would normally be allowed to sell the house, if you wanted to, owing the $160,000 at that time.


At least i think that's how it works.

[LCHIEN]

http://www.reversemortgage.org/About...0/Default.aspx
seems to be a lot of information under this and under "about reverse mortgages" on the bar.

it appears you can take a lump sum, a monthly payment (ergo a reverse mortgage) or a line of credit to be drawn against when you want or need (60% take this option). The principal and interest become due when you die or sell the house or it ceases to become your prinicple residence.
There's a cap on the value by county as well as a percentage of the appraised value.
There's a bunch of fees, 2% up front and .5% annually, to for insurance which guarantees you in the event that 1) your lender goes out of business, or 2) your home becomes worth less than the amount of the loan+interest.

Apparently the advantage is that you still own whatever appreciation your house may gain over the term, youa are protected against loss by the insurance.

The disadvantage is all the upfront fees, if you are going to be in the house for years then it may not be bad, but if you plan to be there only a couple of years, forget it. Also the house is customarily sold to pay the P&I at the end so if you plan to keep the house in the family, forget that, too. Also the interest is variable, like 3 points above prime.

And since the interest compounds and is only paid at the end,
you may find a 15 year expected loan on $100,000 house valuation will only net you $50,000 total payout monthly(my interpretation).
And maybe a lot less if you take a lump sum.

[JR]

There's a bunch of fees, 2% up front and .5% annually, ...

As I understand it, these fees and rates are what will differentiate one loan from another, just like shopping for a regular mortgage. As this kind of loan becomes more prevalent, one can expect to see a variety of options, rates, fees, etc. I suppose there might even be sub-prime versions.

IOW, get lots of quotes!!!

JR

[cabinetman]

Bruce

Get hold of Robert Wagner. He explains things very well, other things too, like drownings.
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[sparkeyjames]

Best advice I can give is hire a lawyer versed in real estate and hire him for one hour to answer your questions.

[Bruce Cohen]

Bruce

Get hold of Robert Wagner. He explains things very well, other things too, like drownings.
.

OK Cab, I'll bite. Who is Robert Wagner (other than a former Mayor of NYC) and how can drowning help find out about reverse mortgages??

Is Wagner a forum member, I can't find him in a search.

Help!!

Bruce

[cabinetman]

OK Cab, I'll bite. Who is Robert Wagner (other than a former Mayor of NYC) and how can drowning help find out about reverse mortgages??

Is Wagner a forum member, I can't find him in a search.

Help!!

Bruce

Cool your jets. You're just not thinkin', or maybe your in a time warp from the magic elves.

OK, don't twist my arm, and since you wanna give up so soon, I'll tell ya. Robert Wagner could be a forum member without us knowing it. But, he happens to be the celebrity (from - It Takes A Thief) TV show, and many movies, who does a TV ad for "Reverse Mortgages". Now to go a bit deeper, he was married to Natalie Wood the movie star (whom I fell in love with over the movie she co-starred with Warren Beatty, Splendor In The Grass. Well, it so happened off the coast of Catalina Island, one evening on their yacht, she fell overboard and drowned. Wagner explained it all as a drunken accident. I betcha he killed her.
.

[Bruce Cohen]

Yo Cab,

That's not a nice thing to pull on friends. I believe almost anything someone says, on face value, so like I own a bunch of bridges.

Also, I've never saw a Ad with Wagner touting reverse mortages, so like how am I suppose to know that.

I seriously believe that Santa is going to leave coal (lots of it) in your socks for X-mas for this. You're getting mean in your old age, it's not nice to mess with out of work people.

Anyway, how are you?, I'm still working on the desk from H**l, thought I'd have it finished by X-mas, but it got really cold here and the garage isn't well heated, so no sardine glue-ups and I have to hold up on the last coats of Watco and Poly. Yeah, I know I can bring it into the house to finish it off, but the Old Lady would castrate me because of the smell of the Watco.

So I'm getting back to my "Job Searching" on the web, must have sent out about a thousand copies of my resume this week and all that's happening is my headache is getting worse. along with other various aches and pains.

Bruce

[cabinetman]

Why not try waterbased polyurethane. It dries fast and clear, and no smelly. Easy clean-up. You can brush, wipe or spray it on. I've been using it for a long time.
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[Bruce Cohen]

Why not try waterbased polyurethane. It dries fast and clear, and no smelly. Easy clean-up. You can brush, wipe or spray it on. I've been using it for a long time.
.

What, no apology for tricking an old man

Will waterbased poly work over Watco (oil base)??

Bruce

[cabinetman]

What, no apology for tricking an old man

Will waterbased poly work over Watco (oil base)??

Bruce

If you think it was trickery, you haven't seen anything yet.

If you have already applied Watco, no. But, if you are going to use oil base poly, you can thin with naptha and it'll dry faster.
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[Bruce Cohen]

Too late, the Watco has landed.

Just remember, I can easily find out where you live

Bruce

[cabinetman]

Too late, the Watco has landed.

Just remember, I can easily find out where you live

Bruce

I've already been to your place. Hee, hee, hee.
.

[Bruce Cohen]

I've already been to your place. Hee, hee, hee.
.

Well in that case, the least you could have done was finish this rotten desk for me.