Reverse Mortgages

[poopgiggle]

No, it's a great illustration of David Ramsey's "summary."

No. His real point is that the fees are too high. You instead characterized his argument as "b-b-but there are fees," which isn't right.

 

[poopgiggle]

I don't understand, what is the scam? Why is using equity - let me give an example... A couple had an RV in the driveway they could not afford to put gas in. They also had a house payment. The RM they got eliminated their house payment of roughly $800 a month so. That free'd up funds for their RV. They now travel the country in their RV. On top of that, they were struggling to make the house payment but did not want to move. Foreclosure was a possibility for them. Now the home cannot be foreclosed on because if no payments are required, then they cannot be late.

The things they need to do with the home are the same things they did with a regular mortgage. Pay taxes, have it insured and maintain the home.

I'm just not understanding how this was a scam for them... Or they lost equity "oh noes!" For these folks equity left in the house after they were dead was not important to them. They had things they wanted to do and without the RM option, they would not have been able to accomplish it.

Taking on debt to support a lifestyle you can't afford is always a good idea!

 

[MaddSkillz]

Uhmmmm ... to live within your means??

What does that mean, exactly?

 

[Shoot Summ]

What does that mean, exactly?

In the example the couple should have sold the RV that they couldn't afford to put gas in, and they should have downsized to a house they could afford the payment on.....

 

[MaddSkillz]

Taking on debt to support a lifestyle you can't afford is always a good idea!

It's the American way! Besides the proceeds of the home pay off the debt. If not, the mortgage insurance pays for it.

 

[MaddSkillz]

In the example the couple should have sold the RV that they couldn't afford to put gas in, and they should have downsized to a house they could afford the payment on.....

But why do that when the RM allowed them to stay in the home AND keep the RV?

And yes, seniors just LOVE moving out of their old homes and into new homes.

 

[liliysdad]

wow..I just dont know what to say.

 

[MaddSkillz]

No. His real point is that the fees are too high. You instead characterized his argument as "b-b-but there are fees," which isn't right.

Too high based on what?

Are you a senior who wants to stay in your home? Are you a senior who just wants to eliminate your monthly house payment? Are you a senior who needs money for health expenses? Are you a senior who just wants to travel?

Too high based on what?

 

[Shoot Summ]

But why do that when the RM allowed them to stay in the home AND keep the RV?

And yes, seniors just LOVE moving into new homes.

But why not use the RM to buy a bigger RV?

I mean if you are going to live outside of your means you might as well go for it.

Maybe they could use the RM funds to make a payment on another property as well, and then RM it when they can't afford it? We all have to do things we don't enjoy, if you have to move because you can't afford your house then do it, no matter what your age.

 

[MaddSkillz]

But why not use the RM to buy a bigger RV?

I mean if you are going to live outside of your means you might as well go for it.

Maybe they could use the RM funds to make a payment on another property as well, and then RM it when they can't afford it? We all have to do things we don't enjoy, if you have to move because you can't afford your house then do it, no matter what your age.

They are not living outside of their means! The equity in their home is paying for it!!! That's the money THEY put there. How is using your own money for something living outside of your means???

C'mon people, this is very simple to understand.