Thinking of a Reverse Mortgage

Unless you really need the cash flow, I hate reverse mortgages. You are simply increasing your debt. What interest rate are they quoting?

We covered this 2 weeks ago your previous thread asking same ?
It's still typically a bad a idea unless you have few other options and dont mind depleting your estate. Not to mention interest rates are high now so you'd be borrowing high interest to pay an old mortgage (presumably lower rate). Did you ever mention your current mortgage rate?

Lots of reasons not to. One is that you are relatively young and may decide or need to sell and move (bad neighbors, need better accessibility for aged, downsize for manageability, etc.).

You can sell a house with a reverse mortgage, but the debt is then due. You will have to pay the balance borrowed plus interest, so you likely will have no equity to put in your pocket and go toward a new home. That could trap you in the house forever even in crackheads move in all around and the neighborhood starts flooding every year.

quote:

---

$1035.00 into our monthly budget going forward with our retirement.

---

Is that $1035 your existing mortgage payment including escrow for insurance and taxes? Because you're still going to have to pay for insurance and taxes, so now you might only be talking about a net gain of $600-700 in your monthly budget.

quote:

---

I’m 63, wife is 66, she’s retired from LSU

---

I'm no reverse mortgage expert, but yall seem too young for one. Assuming you're both in good health, then you're looking at another 20 years each of life expectancy and a RM over that length of time is going to sap you of all your equity in the house.

Are you retired too or just your wife? Tell her to get a part time job working 1-2 days a week doing something she enjoys if you really need that extra $1000 a month or start selling for one of those MLM brands that the soccer moms love.

OP, if you pursue this please share some of the numbers you get quoted. I'm reading up on the fees including mortgage insurance but haven't seen any definitive numbers. Also, wondering how much they'd actually loan monthly with your equity. Likely going to have to address this option w family members soon and would like to be better informed.