Reverse Mortgage or Refi?
Hello, I am developing my retirement plan (too bad it is still years away), and I thought I would ask people's opinion on reverse mortgages vs refinancing and pulling out cash. Surprisingly, I haven't heard too much about reverse mortgages. Are they that popular or even financially worthwhile (a good business decision from a cost/fee perspective)? I would rather not do a refinance to pull cash out of a home that is paid for unless the fees make that the most attractive option. But if I did a reverse mortgage for 30 years at 65 years of age, I can pretty much assuming I won't need the house when I am 95. You never want to be forced to move out of your home. Any insight would be appreciated. by harryjmax22 from Boston, Massachusetts. Jun 16th 2011
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
I am going to be biast on this as I personally do not like or care for reverse mortgages- from a financial aspect you can do a cash out refinance that will be cheaper and invest that lump sum into interest bearing accounts to offset the monthly payments and then eventually you will have a free and clear asset ( your home) in 15 to 30 years depedning upon which term you take and have cahs flow coming from your investment. Again this is just my personal opinion on the matter. Good luck and glad to see some people are still planning to retire in this day and age!
Richard Shapiro (RShapiro)
#12 ranked lender in Massachusetts - 71 contributions
They are popular depending on the area you are in. It is a product that seemed to spread west to east. the basics are that you will qualify for more when you are older. Min age for one is 62, a 70 year old will qualify for more funds than a 62 year old and an 80 year old even more. The basic qualifications are age and amount of equity. Income and credit are not part of qualifying. Unless you are the min age and are in need of cash, then I would suggest waiting until you think you do.
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
This is a personal choice. With a reverse in may also be a family choice or at least consultation. You can find a lot of information on reverse at www.aarp.org. Happy funding, Rudi
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