WITAXLADY Posted March 12, 2015 Report Share Posted March 12, 2015 this is the board for opinions - client coming in 10 am and wants to know if they should do this - the only other experience I have seen is he pays tax on the interest as he took a lump sum and plus they charge him a fee.. thank you d Quote Link to comment Share on other sites More sharing options...
NECPA in NEBRASKA Posted March 12, 2015 Report Share Posted March 12, 2015 I just read an article somewhere about how they can turn around and bite the family in the rear. They don't realize how much they can cost and it can really mess things up when they pass away. I think that I read it in our local paper. I only have one client that has done it and they did not ask me before they did. I worry that they will eat up all of the equity in the house before they die. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted March 12, 2015 Report Share Posted March 12, 2015 Yes, IMHO these are only for someone that has few resources besides their home. Last resort, although they are being sold much like cash-out refi's were during the housing boom. Very expensive and big problems not only for heirs but also can be for a spouse that isn't on title. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 12, 2015 Report Share Posted March 12, 2015 It is not for everyone, but can be a good solution for a couple or single who has most of their assets tied up in their home, and does not want to sell and move, but needs to pull out funds for their retirement needs. 2 Quote Link to comment Share on other sites More sharing options...
Randall Posted March 12, 2015 Report Share Posted March 12, 2015 How do you really advise on questions like this? I would sell and rent, but people want to have that house. Quote Link to comment Share on other sites More sharing options...
FreedomTaxed Posted March 12, 2015 Report Share Posted March 12, 2015 I worry that they will eat up all of the equity in the house before they die. Uh, isn't that the point of it all? Reverse mortgages are commonly advertised as a way to get big blocks of cash from your house, and then they drop all sort of hints that you should spend, spend, spend that cash on consumerism. Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted March 12, 2015 Report Share Posted March 12, 2015 Lets go back to the original post. "he pays tax on the interest" I am not sure I follow this. Someone have some clarification on this matter as I have one coming in next day or two. Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted March 13, 2015 Author Report Share Posted March 13, 2015 the money is in a savings account and there are still fees for every month - I do not think he has a good program! and thank you all - I will let you know if I find out more. D Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 13, 2015 Report Share Posted March 13, 2015 These have worked out well for several of my clients. Mortgage payment goes away and have access to cash if major home repairs needed. But you have to have discipline to not spend all the equity in your house. 1 Quote Link to comment Share on other sites More sharing options...
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