Reverse Home Mortgage

[PaintearthCounty]

The neighbour lady who lives beside me , who is a widow in her late 60’s was asking me about a Home Reverse Mortgage, I said I don’t know much about it but thought AO might be a good place to get some opinions

[W921]

If you don't have anyone you want to leave anything to when you pass on its a way for you to have more cash before you pass on.

[schleprock]

From what I've read, the house has to be worth over $250k in order for her to qualify. Didn't look into it far enough to know if it's a really bad idea though.

[PaintearthCounty]

Her house is probably worth 300,000

[oilngas]

To me it's sorta like;

Money folks evaluate the house take that number n deduct repairs etc. to make it saleable, deduct a percentage based upon the home owners "best before date", deduct a percentage based upon the money they want to make on the deal + handling fee + mystery fee + legal fees + more fees if you want monthly deposits, etc., divide that number by the expected life span = payout to home owner.

Just a guess but the money folks actuarial is on their staff wink wink eh! More slanted numbers maybe.

[-JR-]

Is this when they buy the house from you ,then they rent it to you until your broke.

[Geraldsh]

It’s a deliberate scam aimed at seniors, you hope to die before the deal runs its course.

[brendan's dad]

Originally Posted by PaintearthCounty

The neighbour lady who lives beside me , who is a widow in her late 60’s was asking me about a Home Reverse Mortgage, I said I don’t know much about it but thought AO might be a good place to get some opinions

That a tough situation, being only in her late 60's she probably wants to stay at the house and feels she can take care of the property.

Has she maybe considered taking on a renter who may also be a widow in a similar situation?

[PaintearthCounty]

I’m not sure if she would be comfortable about taking on a renter

[HyperMOA]

Get some real info from the bank or institute. It’s not a great deal, but it’s far better than some are making it sound. Was there not a government sponsored version also???

[calgarychef]

Sell the house, move into low income seniors appt. And take a nice holiday every year.

[MyAlberta]

Based on rental rates, it might be an option. Up front lumps could clear hard credit debt. High rates, costs to get in, spiral. From an estate perspective, Beneficiaries often have negotiable resources.