Parents considering Reverse Mortgage

What's the purpose of the mortgage? Is it to support the business that they spent most of their retirement on?

I'd say that's a solid pass for me. They would be creating additional debt right to follow spent money.

Do they own the building where their business is located? They could sell the building provided it isn't based out of their home.

I have thought about this recently. I'm not in retirement but if I want to access the equity of my home but I love my home too much to move away, it seems like an option to investigate.

I think this is also could be good in situations where you dont want to burden your kids with having to deal with the house when you are gone. If you know the house isn't going to stay in the family, it makes sense. Now if you know that one of the kids or other family want to have the house when you are gone, then obviously it may not be a great choice.

Fred Thompson also said to get the information kit.

Your parents need to obtain quotes from differing lenders. Help them with evaluating the information. Also compare to a cash-out refinance calculation.

If you're parents can use the equity of their property, it's an option they can consider. This statement does not indicate intent of support or nonsupport by bestbanker. Information is the key to knowledge.

quote:

---

They have spent most their retirement savings keeping the business open.

---

That's not how businesses work. Is this a hobby? Or a profitable business prior to COVID that you all have hung onto out of sentiment?

Regardless, they (and maybe you) do not appear to be very good with money at this point.

quote:

---

Both of them are approaching 80 years old.

---

Sell the house and move them to an assisted living facility.

(ETA: I'm not derogating, either, my guy. I had a business go absolutely tits up. And I mean all the way. I learned from it. You may, too. I'm just offering the good medicine. Seriously, best of luck.)

You’re gonna get arse raped. Don’t do it!