QUESTION:

reverse mortgage to help my sons

I am considering a small reverse mortgage (no more than $12,000) because both of my grown sons have fallen on bad times,and I wish to purchase them both an inexpensive car. I have $20,000 of life insurance, which will be theirs when I die. I am in very bad health and don't expect to live to a ripe old age. My concern is that I do not want to get more money than would be payable out of my life insurance, as they will also inherit my house and I don't want them to inherit a mortgage payment. I do not know how the interest accrues or at what rate. Can you help me? I am 67 yrs. old..
asked by sambosinbad, 12/15/2007
Categories: Late Stage Retirement, Reverse Mortgages, Medicare, Reverse Mortgage Calculators, Supplemental Medical Insurance
ANSWERS:
Answered by: djman007, 12/29/07
Overall Rating: Be the first to rate it.

This is only my opinion. A reverse mortgage is meant to help you as the homeowner and I believe will pay you a monthly income and not a lump sum amount. If your home is paid for you can change the deed to a 'Transfer on Death' deed and have the house transfer to your sons upon your death and this will also bypass probate in most states. Whether you are in bad health or not it appears that your sons will not be able to help you financially if needed and I would reconsider jeopardizing your own financial security. Don't sell yourself short.

Login to rate this answer: 1 Star2 Stars3 Stars4 Stars5 Stars
    Post a New Retirement Topic or Question