reverse mortgage to help my sons -- part 2 | In NewRetirement's Questions & Answers Forum

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reverse mortgage to help my sons -- part 2
I asked a question earlier & think I may have accidently erased it when I made an effort to add something. I am 67 yrs. old, in failing health. My grown sons have fallen on hard times, and I want to get a small reverse mortgage(app.$12,000) so that I can purchase them each an inexpensive car. My home is worth around $200,000, and I have $20,000 worth of life ins. and don't want the reverse mortgage to be more than that when I die, so that they will be able to pay it off with my ins. money. I don't know how the interest is calculated. Can you help me?
	asked by sambosinbad, 12/15/2007
Categories: Retired, Reverse Mortgages

ANSWERS:
	Answered by: Editorial, 01/02/08 Overall Rating: Be the first to rate it.
You may have at least two options for getting $12,000 out of your home. -- A reverse mortgage might be a good option especially since you will never owe more than the value of your home. However, if you sons are living in your home and wish to stay there after you die, a Reverse Mortgage might be an expensive option. You can estimate the interest on a reverse mortgage with a calculator here: http://www.newretirement.com/Services/Reverse_Mortgage_Calculator.aspx You can also learn more about reverse mortgages generally, here: http://www.newretirement.com/Services/Reverse_Mortgage.aspx -- Another option might be a home equity loan. Learn more about home equity loans, here: http://www.newretirement.com/Services/Mortgage_Refinancing.aspx Login to rate this answer:
	Answered by: Editorial, 01/02/08 Overall Rating: Be the first to rate it.
You may also want to look at a comparison of different ways of getting cash out of your home equity.... http://www.newretirement.com/Services/Home_Equity_Solutions.aspx Login to rate this answer:
	Answered by: Tamera, 03/06/08 Overall Rating: Be the first to rate it.
Based on the information you have given, Im not sure the Reverse Mortgage is in your best interest. From what you have said, the only reason you wish to obtain a Reverse Mortgage is to purchase vehicles for your kids. Your desire is to only borrower as much as what they would be able to pay off with the $20,000 life insurance policy. Depending on your home value, the costs associated with the reverse mortgage would make the small $12,000 loan not worthwhile. The reverse mortgage is an all or nothing loan when it comes to the costs. Although you can use whatever portion of the proceeds youd like, the costs are based on the full amount available. On the other hand, If you were to have other purposes for the reverse mortgage other then helping out the kids, then it may be worthwile for you. Some of my customers dont realize the true value of their reverse mortgage until they need to pay for long term or in-home care and prescription. Im guessing, based on your hard-times, that when you need their help financially, that they wont be able help you. I would be happy to run an amortization schedule to help you make up your mind if you havent already. tfield @financialfreedom.com 877-632-7890 Tam Login to rate this answer: