reverse mortgage

[MaryAnn]

Anybody here gone that route? I could just call up someone and get on their spam list but would rather inquire where I won't get spammed over it for the next ten years.
What I want is a motor home, which IS technically a house in that you can get a mortgage on it. So...get the reverse mortgage on the actual house, use it to buy a motor home, and not have to make payments.

[Three Valves]

I have no idea why people don't sell their house, then set up an account where the funds are withdrawn themselves.
(like a 401 or IRA) Most people qualify to sell one home once without a significant tax hit.

If you want to get a second on your home to buy a second home/trailer/boat/RV, just get a second mortgage.

[MaryAnn]

That was the question I finally realized I wanted answered...was whether the interest accrues. If it does, I'm not even slightly interested. This really is a product for those who need income and don't care what happens otherwise. I can afford a motor home. I just don't want to spend the money. And I'm not getting one of those $200,000 bus things either. A 22 foot Class C is about the same length as my truck.

[The Big Ben]

When my Mother retired and wanted a place where she didn't have to deal with gardening, she sold the house outright and used that money to rent a condo. The rent was about 1/2 of what the payment would be if she had bought it. I can't remember how she invested the money so it wasn't just sitting there. Considering my parents bought the house in 1958 and my Mother sold it in 1994, there was a lot of gain there and she didn't want to use up all that gain just to have a place. (The house sold for a price where she could have bought the condo with cash and had some left over.) The only "problem" with this method is that you would have to move out of your house to be able to sell it or if you still have quite a bit to pay off on the loan.

[Donn]

I don't suppose this really adds up, but lenders don't like condos where a significant number of the units are being rented. Creating a sort of vicious cycle where as people need to move along, they can't sell their unit / so they rent it out, making it harder for anyone else to sell their units / ... So owners of rental condos likely didn't buy it to rent out, they're just stuck there. That's the story I got from someone near me who's stuck there.

Anyway, you can only rent it out for what people are willing to pay. If Mom was not a young person, I don't know, can you get a 30 year mortgage if your odds of living that long are not so great? Around here, a 15 year mortgage could easily be $4K a month; rents are also high, but not that high. On the bright side, 75% goes to asset; the renter gets 0%.

[The Big Ben]

That is really weird. Normally the rent is double the price of the mortgage so that the owner makes a profit. Around here that is the norm. If you buy it to rent out, why would you rent it out for half of what you are paying for it every month...

The owner of the condo had owned it for fifteen years and it was paid for. His father had lived in it and had died. The owner was charging the same rent as similar units in the same building.

[Three Valves]

I'm buying lottery tickets on the way home!!

[bort]

Short answer: it's complicated.

If I were you, I'd spend a bit of money to meet with a financial planner and run through your options to see what makes the most sense for your individual case. A reverse mortgage is a terrible idea for some people... and a decent option for other people. It just varies too much to make one blanket statement for everyone.

You're right though, I wouldn't call a mortgage company at all, or you'll never hear the end of it from them.

[Three Valves]

I hear you may be interested in an annuity policy....

https://www.youtube.com/watch?v=2xHJrGEcP_k" target="_blank