The ad that inspired this reverse mortgage article claims that Americans have trillions of dollars just sitting there, not being used. The problem is that a reverse mortgage isn't using that money, either. It's using the house that's worth that money as collateral for a LOAN. It's a loan that needs to be paid off when your house is sold. You can make mistakes and end up losing your house.
The better advice for anyone already retired or looking to retire is to sell. I know, you love your house, all the stuff in it, the neighbors you wave at, the same big box retail down the road, and all the stuff in the house. It's basic economics: if you own something outright worth $500,000, sell it for $500,000 and rent a nice condo for 20 years. If you take out a reverse mortgage, then you can get $250,000 towards a condo for 10 years, still pay property taxes and insurance on the house, and continue to maintain it so that in a decade, you'll make enough money to pay off your reverse mortgage loan. New AC, new roof, new driveway? That would all eat into the profit on selling your house that you'll need to cover all the interest on the loan. Don't pay a bank for the right to live in a house for your entire life. Avoid reverse mortgages at all costs.
Thanks for reading. See more of my content:
Satisfamily - Articles about being happy as a family
Passive Ninja - Web Design in Jacksonville
McNewsy - Creative Writing
Educabana - Educational Resources
Brave New Church - Church Website Design
Voucher School - Pros and Cons of School Vouchers
Luthernet - Web Design for Lutheran Churches
Sitcom Life Lessons - What we've learned from sitcoms
Mancrush Fanclub - Why not?
Epic Folktale - Stories of the unknown
Wild West Allis - Every story ever told about one place
Educabana on Teachers Pay Teachers (mostly ELA lessons)
Real Wisconsin News - Satire from Wisconsin
Zoo Interchange Milwaukee - Community website
Chromebook Covers - Reviews and opinions
Brian Jaeger - Resume (I'm always interested)
Contact Me
