May need Reverse Mortgage to stay retired.

[cameron7]

Hi,

My name is Rich. I am retired and may need a Reverse Mortgage to stay that way. I know that it is not the best of deals, but thought I would look into it anyway.

I am looking for an independent mortgage / reverse mortgage broker /adviser to answer some questions, perhaps suggest alternatives and then find me a good solution.

I had a broker when I built my house 25 years ago who helped me convert my construction loan into a permanent mortgage. This worked out very well for us.

In my searches, I am only finding lender paid brokers that do not seem to be truly independent.

Any ideas how to find a broker who is not beholding to the lending institutions.

Rich

 

[pb4uski]

....Any ideas how to find a broker who is not beholding to the lending institutions. ...

Ah... you are unicorn hunting.

Have you considered a HELOC or a cash-out refinancing? Do you have income? Pension? SS?

 

[UnrealizedPotential]

My only thought is, I would check every available source of income possibility before I did a reverse mortgage . You already did that? I would check it again .

 

[cameron7]

Reverse Mortgage

Have Only S.S.

My wife is still working, but she lost her career job when her firm lost their monster account. Now she is working a commission only job and so far just paying for health insurance.

I had not heard of cash-out re-financing.

 

[Sunset]

How about looking for work ?
Living on SS is not really Living.
Are you really pulling our legs by having the name Rich ?

 

[UnrealizedPotential]

I have to ask, are you 100% certain there is no pension at your old employer? What about finding part time work? I know you may not want to, but you do what you have to do. If your wife retired would she get SS or is she already receiving it?

 

[cameron7]

If my wife was not working she would be eligible for S.S.

I was hoping not to have to go back to work, and it would be hard to find employment until this virus crisis breaks.

The end of Mortgage Payments both our SS Checks and Reverse Mortgage income would give us adequate income.

I am looking for other options, but if I were to take out a reverse mortgage, I would want to get the best one possible.

 

[euro]

Its hard to make a suggestion without knowing all the details but a reversed mortgage might be a perfectly fine product for your case. That said, I'd also encourage you to explore a cash-out refi or HELOC (cover your "surviving spouse" risk with a term life policy).

 

[CaptTom]

Just like annuities, there are times when a reverse mortgage makes sense. I'm hoping to avoid both, but now you've got me curious.

So, enlighten me. I figured you could just surf the bank web sites looking for the best terms. Do you really have to go to one of those sleazy brokers who advertise all over?

 

[Sunset]

If my wife was not working she would be eligible for S.S.

I was hoping not to have to go back to work, and it would be hard to find employment until this virus crisis breaks.

The end of Mortgage Payments both our SS Checks and Reverse Mortgage income would give us adequate income.

I am looking for other options, but if I were to take out a reverse mortgage, I would want to get the best one possible.

Reverse mortgages are expensive, meaning they charge large fees and only give up to a certain percentage of the house value.
Plus you lose the house under certain circumstances which might include: lack of maintenance, property tax non-payment, moving out, etc.

If you have zero savings, then frankly retiring on just SS is not how it was designed or meant to be used, as it's not enough. Something you seem to notice.

Maybe you should sell your house and move to a low cost State ex: TN.

 

[cameron7]

I'm not intent on using a broker, but several articles I have read suggested a Independent Broker who is not paid by the lending institutions. Some one you could get by way of referral. And not the people who blanked television and search engines with expensive advertising.

I had not intended to be tapping my home equity for several years and now I'm trying come up to speed on all of this.

 

[Gumby]

If my wife was not working she would be eligible for S.S.

You don't have to stop working to start collecting social security.

How old is your wife and how much does she make? If she is between 62 and 67 (actually her full retirement age, whatever it is - probably 66 and a few months), she can make $18,240 in 2020 before it would result in any loss of social security. If she is over FRA, she can make as much working as she likes and still collect social security.

 

[Morgan22]

Maybe you should sell your house and move to a low cost State ex: TN.

+1

 

[WyomingLife]

We lack financial data to provide any semblance of advice. If you are comfortable doing so, you might consider posting more details about your financial situation.

 

[Sunset]

You don't have to stop working to start collecting social security.

How old is your wife and how much does she make? If she is between 62 and 67 (actually her full retirement age, whatever it is - probably 66 and a few months), she can make $18,240 in 2020 before it would result in any loss of social security. If she is over FRA, she can make as much working as she likes and still collect social security.

It's actually a delay of some social security. As she would get a higher amount later on based on what was withheld.

The word loss suggests she would never get the money back.

 

[pb4uski]

It's actually a delay of some social security. As she would get a higher amount later on based on what was withheld.

The word loss suggests she would never get the money back.

I guess the wording that Gumby used suggested to me that the "loss" would be for that year... while being silent on future SS... so while you make a good and valid point, it is a bit of a nit.

 

[Gumby]

It's actually a delay of some social security. As she would get a higher amount later on based on what was withheld.

The word loss suggests she would never get the money back.

You are correct. I was trying not to complicate things and concentrate on the money that could be available here and now, which is what appears to be the OP's issue.

 

[ivinsfan]

If my wife was not working she would be eligible for S.S.

I was hoping not to have to go back to work, and it would be hard to find employment until this virus crisis breaks.

The end of Mortgage Payments both our SS Checks and Reverse Mortgage income would give us adequate income.

I am looking for other options, but if I were to take out a reverse mortgage, I would want to get the best one possible.

Can you even get a RM when the home isn't paid off?

 

[UnrealizedPotential]

Can you even get a RM when the home isn't paid off?

My understanding is , one can get a reverse mortgage, but the home has to be at least 80% paid off. Someone correct me if I am wrong.

 

[ivinsfan]

My understanding is , one can get a reverse mortgage, but the home has to be at least 80% paid off. Someone correct me if I am wrong.

OK but you would get even less money in your pocket in those circumstance.

 

[Starsky]

Given that the world is shutting down, and it may not be a great time to make new financial commitments, could you buy yourself some time until this is all over? Some new options could come up to help you in the meantime.

It also sounds like DW could be collecting a SS benefit and earning some extra money too. (Plus whatever relief checks come in) If you both are collecting SS and have enough equity, you might be able to qualify for a HELOC. Mortgage refinancing would be a much heavier lift. Among other things, Banks don't know how to price 30-year loans right now and re-fi rates are noticeably higher than in recent years.

Pay attention to the new legislation and the benefits. It appears that there's something for everyone in there. I read that the new COVID-19 Federal relief bill will include up to 12-months mortgage deferral, expanded unemployment benefits, SBA loans to independent contractors, and of course, free money.

(FWIW, I believe you can start and stop collecting Social Security whenever you want, to go back to FT work and/or increase your long-term payout.)

 

[Montecfo]

I think the best alternative to a reverse mortgage is to downsize. Better in the long-term, reduce your overhead, sleep better.