Reverse Mortgage

[LynneaH419711]

 I am 79 years old. I have $4000 left in CDs set aside to pay my taxes for the next two years. I owe $60,000 on my mortgage with a relatively small monthly payment. My income is $1800 a month, combined SS and retirement payments. Recent medical bills have set me behind in my budgeting. There is no wiggle room and I am starting to worry. My original plan was to sell the house when I got to this point. The house is very conducive for aging and I have a strong social network. I am try to negotiate this next step in the most optimal way. I am seeking guidance. Thank you. LynneaH149711

[KukrikaS397150]

You’ve got a tough decision, but keeping a strong social circle and an aging-friendly home honestly counts for a lot. You might want to compare selling vs. a reverse mortgage first —

[GailL1]

@LynneaH419711 

A Reverse Mortgage is not something to take lightly especially when you still owe on the property - a lot to consider like how much would you realize with an amount owed on the property.  You have to pay close attention to the details - is there anybody else on the title or deed to your property?   Would any of your heirs want it and would they be willing to pay for it cause they will if you do a reverse mortgage.

What happens if you have to leave your home like if you cannot care for yourself and need to go live with family or in a facility. 

Educate yourself -

A Home Equity Conversion Mortgage (HECM) is the only government-approved reverse mortgage, insured by the FHA.

FHA - FHA HECM Loans vs. Conventional Reverse Mortgages 

US Dept of Housing and Urban Development.gov - Home Equity Conversion Mortgages for Seniors 

Make sure you understand a reverse mortgage - in detail to see if it fits and is workable for you. 

[PedanticCurmudgeon]

I have no qualifications to give financial advice, so don't pay me heed.

When "reverse" mortgages were introduced, I looked into them and conclude they're a very bad deal and decided to not take the risk.

[GailL1]

@PedanticCurmudgeon 

Yea, IMO, if you have substantial equity then a HEL or a HELOC is the way to go - I am partial to the HELOC then you can just use it and pay it off as needed especially for some expensive repair or maintenance item.  

I replaced my roof last year and now am gonna redo the deck.  Roof almost paid off and now the deck will be added - going composite.  Sure not as cheap as it was the last time I did these same things - 

Yeap been here a very long time.