Reverse Mortgages- Are You in It, Pros and Cons

I agree with Dave Ramsey.

Although it sounds very intriguing, especially when advertised by famous people, it's not a good idea. I went to an Estate Sale last week thinking that the lady died. She didn't. She had a stroke and was going to be in Rehab for 6 months. In her terms with the reverse mortgage (the one that Robert Wagner represents) she has to occupy the house in order to "stay" in it the rest of her life. Now she has lost her home and has no where to go when her rehab is over.

These elderly people have paid off their homes and I personally think that only vultures would propose something so unethical. A home equity mortgage could have the same benefit for the homeowner if they were cash poor. They would just have to arrange payments. Most people understand that nothing is free in life. This woman's son-in-law begged her not to do it.

M.

Dave Ramsay's advice is NEVER do a reverse mortgage. I'm sure you could google his opinion on them for more explanation.

First, that was very rude of the poster to state "demographic age of this web forum is under 62" And Like you said..I guess they don't have parents, grandparents or someone OLDER than them! And although you can read or hear emotions when posting - good thing. My husband's grandparents did it - like last year or so and yet I don't have any insight today of how it's going - seems like it's going okay. In their case, it was a good thing. They have nasty rotten ADULT children who think they're just gonna live off of them forever - not pay for anything but suck them dry financially. They're both not in the best health as well, so with doctors and medications, it helped them finacially. I'll ask this weekend and let you know.

I think the demographic on this web forum, for the most part, is under the age of 62 and therefor does not qualify for a reverse mortgage. Maybe check with the AARP?

-My answer wan't meant to offend...it's just pointing out the reality of this site. Especially since the question was phrased with a weight on "have you done this". There are better places to get the answer to this question from people who will have a much deeper knowledge of reverse mortgages.-

I think it should serve more as a last resort. But, if your children are doing well for themselves and therefore there is no need to leave your house to them AND you really need the money, then go for it. But if you want to leave something for your children, this may not be the way to go. Definitely speak to a financial advisor who can help you weigh out your own personal pros and cons for this.