Reverse Mortgage!!

[gomes]

Hi all,
I’ll be retiring in a couple of months. We have a house of our own. Our 2 kids are married and well settled. Me and wife want to have a peaceful life without any tensions post retirement. But we don’t want to depend on our kids for any source of income. My colleague suggested that I go for reverse mortgage with our present home. Since I don’t know much about this, can you all please help me out? Is this a good idea? Like I said, will I be tension free?? Please help. Thank you.

 

[REWahoo]

[-]In my opinion a reverse mortgage is a last-resort option but situations and opinions vary. Here is a good article on the pros and cons: Reverse Mortgage - What is it, How does it work, and more[/-]

EDIT: Your profile says you live in Canada. Sorry, I know nothing about your options.

 

[ShokWaveRider]

In the USA it is a BAD idea, the Fees and Interest on the loan (Yes it is a loan) is almost double a conventional mortgage, if you have the discipline you are better off with a conventional mortgage and manage it yourself. (Unless you are desperate I guess)

 

[pb4uski]

I saw Tom Selleck hawking reverse mortgages on tv the other day, like Fred Thompson before him, they both went down a couple notches in my book... sad.

 

[Ready]

The fees on a reverse mortgage are know for being very high, but I've often wondered if shopping around and aggressive negotiating could get some of the fees lowered. I've never personally tried it. A reverse mortgage is my last resort option if stock returns are horrible and I blow all of my money before I'm ready to go, but I would never RE if I had to rely on a reverse mortgage to live on.


Sent from my iPad using Early Retirement Forum

 

[ExFlyBoy5]

I saw Tom Selleck hawking reverse mortgages on tv the other day, like Fred Thompson before him, they both went down a couple notches in my book... sad.

No...Not Tom Selleck! I hate when I see these actors hawking CRAP products to older folks. I am of the opinion that these advertisers are SCUM and are taking advantage of older folks who may not be able to make the best decisions. Very similar to the CRAP that is for sale in the "American Legion" magazine. I can't tell you how much GARBAGE my dear 'old Dad has bought because it was in the Legion Magazine...Rrrrrrr.

 

[Walt34]

No...Not Tom Selleck! I hate when I see these actors hawking CRAP products to older folks. I am of the opinion that these advertisers are SCUM and are taking advantage of older folks who may not be able to make the best decisions.

I see it the same way. Very sad to see people that I once thought reasonably highly of turn to prostituting themselves that way.

For the OP, I don't know about the rules in Canada but in the U.S. it is a bad idea. If physical ailments or whatever make you move out of the house your financial options are then severely limited, assuming the house is a large portion of your assets. First thing right off is you have to pay back the payments plus interest.

My position would be that if someone has to take out a reverse mortgage to keep the house then they can't afford the house.

 

[ShokWaveRider]

I really do not think Fonzi and Magnum need a reverse mortgage, although you would think they did by the way they talk so solemnly in the ads.

 

[braumeister]

I see it the same way. Very sad to see people that I once thought reasonably highly of turn to prostituting themselves that way.

I find myself wondering if they do it because they actually need the money.

But I agree that a reverse mortgage seems like a last resort move in most cases.

 

[Sunset]

OP - sounds like you cannot afford to retire.

Since you are in Canada, do you have your house paid off ? , if not that should be your consideration or sell it and rent or get a smaller place.

How are your RRSP accounts and do you get a Pension, have you calculated your CPP.
Most important what are your annual expenses ? Maybe you are worried over nothing but the only way to know, is to know what your expenses in retirement will be.

 

[ERD50]

I see it the same way. Very sad to see people that I once thought reasonably highly of turn to prostituting themselves that way. ...

I wonder if they are financially literate enough to actually know if the product is any good or not? They probably believe the sales pitch the company gave them, if they researched at all.

-ERD50

 

[aggie76]

Remember these people are ACTORS..they make a living in a complete fantasy world. Most of the are too stupid to know reality from the fantasy they make a living playing at. There was a reason that actors were reviled as one of the lowest forms of life in ancient Rome. They ARE !!!! Add in the drug infested world and the fawning low IQ masses that fawn over them and you have ......... Actors selling some of the worst scams possible... reverse mortgages, annuities, gold, "recently discovered" coins...........AARP......
Sad..very sad and pathetic.

 

[travelover]

Remember these people are ACTORS..they make a living in a complete fantasy world. Most of the are too stupid to know reality from the fantasy they make a living playing at. ........

Maybe so, but one of those actors mentioned above was running for president a few years ago.

 

[Dawg52]

I saw Tom Selleck hawking reverse mortgages on tv the other day, like Fred Thompson before him, they both went down a couple notches in my book... sad.

Yeah but their bank balance went up.