Reverse Mortgage
We are both 78 years old. Own a home worth $600,000.00 and we ow $240,000.00. On unemployment, can’t afford to stay in the house. My husband wants to get a reverse mortgage. I feel we should see the house and hopefully be able to purchase a condo cash. Only $150,000.00 in savings. I respect your knowledge, what do you think of reverse mortgage? I hear they are a poor choice. Thank you very much.
Terry Says
With such a large mortgage balance, you won’t get much of a monthly payment from a reverse mortgage. The way to find out is to ask one of the RM companies, or use the calculator at www.ReverseMortgage.org.
Remember, you will be eating up all your remaining equity in your home — leaving nothing for your heirs. And you will still be responsible for property taxes, insurance and upkeep. Unemployment only lasts a limited amount of time — and given the changes in the economy you might both be fully “retired” at this point.
At this age, it seems you might be better off considering a senior community– where if one of you needs assistance you can get it. And you’ll have some savings if you only pay a monthly rental fee.
