Hey everyone,
I’ve been thinking about reverse mortgages lately. My wife and I are in our 50s with no kids or siblings. We’ve got a paid-off house and decent savings. What’s bugging me is why reverse mortgages get such a bad rap.
Here’s my thought process:
- We don’t need the money, but extra cash sounds nice.
- We plan to stay in our house till the end.
- We don’t care about leaving an inheritance.
So what’s the catch? People keep saying it’s a scam, but I don’t see how. Even if we only get half the house value, isn’t that still a win for us?
I know HELOCs are an option, but the guaranteed money from a reverse mortgage seems safer.
Am I missing something big here? It feels like free money for folks in our situation. Why isn’t everyone without heirs doing this?
I’d love to hear your thoughts, especially if you’ve got experience with reverse mortgages. Thanks!
i’ve looked into reverse mortgages too. theyre not a scam, but fees and issues can be problematic. if u move or lose a spouse, complications can arise. for ur case it might be ok, but read the fine print!
Reverse mortgages can indeed be beneficial for childless couples in your situation, but they’re not without drawbacks. The high fees and interest rates can significantly reduce your equity over time. There’s also the risk of foreclosure if you can’t keep up with property taxes or insurance.
While it may seem like ‘free money,’ you’re essentially spending your home’s equity. Alternatives such as downsizing or a traditional home equity loan might offer similar benefits with less complexity and lower costs.
Ultimately, consulting a financial advisor to review your specific circumstances is essential before making a decision.
Have you considered other options? Reverse mortgages sound tempting, but what about renting out a part of your house or investing in dividend stocks? Curious about your long-term financial goals. Any thoughts on potential healthcare costs as you age? It’s a complex decision - what made you start looking into reverse mortgages?