I got pulled in by "clickbait" that turned out to be a place for others to argue...
Tom Selleck is evil because apparently he's shilling for a company that wants to steal "seasoned citizen's" homes.
I have no intention of biting, but it sparked a question I've had for some time:
How does getting a reverse mortgage on my home differ fundamentally from refinancing it?
I've given considerable thought to refinancing our home, then using that "nest egg" money to either buy real estate, or precious metals, or both. I could then pay off the refinance over a period of years while holding the solid stuff in my hand, or enjoying a piece of property that hopefully will increase in value.
I don't know anything about reverse mortgages, obviously.
Are they a scam?
07 September 2020
Reverse Mortgages
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Not an expert but they are a tool that fit some people's needs. My mother looked hard at them to insure she had an income source besides social security. She decided against one in the end.
From every single financial site I visit regularly the " devil is in the details". The details favor the folks that wrote them of course .
Spent 35 years in all forms of mortgages. Short answer for reverse mortgage is Scam. They appraise your home and give you a lump sum but they then Own your home until your death. If the spouse left is capable they can stay until they die or leave the home. At which time they will put the home up for sale and all proceeds is theirs. Doesn't matter if the home increased in value it's all theirs. I haven't looked at all the details in a number of years but I knew it was never for me. I guess if I were on the verge of losing my home it might be a way to save it but a refi or second mtg would be so much better. Always take the longest years available and pay the principle from the next month payment. But always pay with a separate check that designates what the money is for as left without instruction they will apply to the escrow account. Pays off in half the time.
I know two people with one. My brother is one. He figured he didn't need to leave his kids anything and he wanted the income now as he had little otherwise. So far, he seems happy with it. I hope it's okay for him.
Thank you Mom.
Good stuff.
Not a clue. Sorry!
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