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Reverse Mortgages

This topic contains 12 replies, has 11 voices, and was last updated by  don021 > 7 days ago.

Discussions Advice Reverse Mortgages

Viewing 10 posts - 1 through 10 (of 13 total)
  • #709627
    seafarer
    Member
    Member since: January 4, 2010
    Topics: 3
    Replies: 8
    seafarer

    Has anyone advice or experience of Reverse Mortgages for an elderly couple.We would like to free up some of the equity of our mortgage free home.

    #709629
    benny
    Member
    Member since: January 31, 2007
    Topics: 11
    Replies: 6498
    benny

    We thought about this a couple of years ago and was advised to steer clear of it ,I can’t remember exactly why but I would suggest that you ask your Solicitor or some same person who will explain it to you in plain language.

    #709631
    gabyone
    Member
    Member since: November 13, 2008
    Topics: 1
    Replies: 2742
    gabyone

    Hi Seafarer,
    Reverse mortgages sound great but because the interest keeps getting added to the mortgage, very quickly you owe a lot more than you borrowed. Then should you need to sell to get a more suitable house or perhaps one of you dies & the other would like a unit in a retirement village & suddenly you do not have sufficient equity in your house to make the move. Have you thought about perhaps trading down to a cheaper or smaller home to free up capital. Have also heard of a family who bought Mothers house so that she could travel etc while she was still fit. Do talk to your lawyer or ring your local Citizens Advice who should be able arrange a free legal appointment for you. Good luck

    Gabyone Auckland region

    #709633
    seafarer
    Member
    Member since: January 4, 2010
    Topics: 3
    Replies: 8
    seafarer

    Thank you Benny and Gaby. Selling and moving to a smaller home was our first option but since the earthquake. (We have minor structural damage) there is no interest from buyers whatsoever, which is understandable. Seems like we are stuck with it!
    However will definitely seek all the advice we can get.
    Thanks again

    #709635
    Kari
    Member
    Member since: May 31, 2007
    Topics: 20
    Replies: 2082
    Kari

    I believe the original American idea of “reverse mortgages” is that the company buys your home, gives you your equity in cash and you are able to go on living in your house for some kind of agreed-upon fixed term — maybe until you die or move out; then, the company sells the house at a profit.

    #1566584
    davidhsf
    Member
    Member since: September 27, 2016
    Topics: 0
    Replies: 1
    davidhsf

    <span style=”color: #191919; font-family: Georgia, ‘Times New Roman’, Times, Baskerville, serif; font-size: 17px; line-height: 29px;”>A reverse mortgage provides the opportunity for over 60’s to stay in their own home and improve their lifestyle. To decide if it is right for you: get advice from an Equity Release expert eg Heartland Seniors Finance; then talk to family and an independent lawyer. Equity Release has made a massive difference to the quality of life of many retirees.</span>

    #1628679
    jimmyp
    Member
    Member since: June 2, 2017
    Topics: 20
    Replies: 149
    jimmyp

    You will never find a more slippery slope than a reverse mortgage. Unless you are already a drug addict and you want to keep buying drugs then don’t touch it. There are two basic kinds and one is set up so that you get a monthly payment to spend. The down side is you are charged horrific interest and giving the best security. If you are an old person, you are a bad risk to any lender. These institutions are not your friend. There is no free lunch. With all of the costs and hidden charges you are better to take a small loan on a credit card. With these mortgagee once you are in, you can’t get out. They are the cancer of the financial world with the same unhappy ending. Did your parents do that to you. If not then don’t do it to your kids.

    jcm parlane

    #1717428
    nizzy
    Member
    Member since: April 10, 2017
    Topics: 0
    Replies: 3
    nizzy

    😀 Hi there !  our only son owns his own home mortgage free @ 40  yrs old & he tells he doesn’t need nor expect us to leave money  or assets to him and his family ! We paid for all his University fees and gave him opportunities that we never had ..he is now a very successful scientist ! .  He says its our money and  assets so spend them how we  like !  Due to some  ill health and  related medical expenses we are finding it tough living mostly on our super in NZ  and are also looking into taking out a reverse mortgage to improve our quality of life. We are both in our early 70s so even if the loan has doubled in 10 years( if we live that long )  ..we will still have a reasonable equity in our house.  Still yet to make the  final decision but it certainly is an option for those of us who have no other choice !

     

    #1717435
    meggie50
    Member
    Member since: October 4, 2016
    Topics: 0
    Replies: 2
    meggie50

    I don’t see a problem with it, why would you worry about the ones left behind who spend Willy nilly without a thought for the future. Do what’s best for you, that’s what I am doing. Why should you scrimp and go without just to leave to others.

     

    #1717442
    nizzy
    Member
    Member since: April 10, 2017
    Topics: 0
    Replies: 3
    nizzy

    Exactly that’s what we are thinking !  To make matter worse one of our neighbors tried to take us to court due to our complaint about  the noise from his THREE dogs that bark incessantly .Because he was part of the judiciary in NZ he took offence so it cost us $10K to defend our right to make that complaint . The case was dismissed  by the judge as it is a human right to make a complaint !~  however  no compensation was granted. This experience has made our financial situation  far more difficult as that money was put aside for medical expenses and now its down the drain.

Viewing 10 posts - 1 through 10 (of 13 total)

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