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Basically, the requirement is 62 or older living in your home. I've tried to convince my 88 yr old dad (deceased) and 85 yr old mom to take it on their $1.5 million home in Hawaii. They seemed open to the idea but I know they would not take it due to; 1) not needing it, 2) not financially savvy, etc. If I was 62 and met the requirements I would take it.
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Reverse mortgages aren't a very good deal but they can provide extra cash when needed, as well as a value proposition...typically the mortgagees can live there until they die. I can see why your parents didn't take one out, if they didn't need it. That might be good for you too, if they plan to leave the home to you...History will judge the complicit. -
Why do you think they should take a mortgage that they don’t need? Especially a reverse mortgage. They are awful products. They should be last resort options.Steve
* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.Comment
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I stand corrected. I thought it was a good product where they could use the equity from all those years which they built up. Of course it would have to be repaid when they pass but that would be handled by the heirs and not their problem at that point.Comment
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Hawaii is a non-recourse state.
not suggesting anything but wanted to point that outComment
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They tend to have high fees & interest rates, some companies are really scummy about how they advertise & manage them, and often they don't give heirs the opportunity to payoff the mortgage -- they simply take possession & still it off. Also, if the owners live longer than the equity in the home can support, they can get evicted from their own home when the mortgage holder takes possession (because the owners obviously can't repay the mortgage).Originally posted by QuarterMillionMan View PostComment
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