ChatterBank2 mins ago
Reverse Mortgage?
26 Answers
Has anybody on here ever had one? .
Its something i am thinking about, but need a bit more info.
tia
Its something i am thinking about, but need a bit more info.
tia
Answers
Best Answer
No best answer has yet been selected by piggynose. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ."TTT, reverse mortgage is a proper, recognised term meaning equity release." - is it really? first I've heard of it and it's wrong it is not the reverse of a mortgage it's a mortgage.
"There is no mortgage involved in saving up to buy a house outright " - yes it's like a reverse loan often prescribed for those with no credit, how much can you afford to pay each month? well save it until you have enough to buy what you want to buy. The reverse mortgage would be the same, ostensibly it is a loan and the opposite of a loan is saving, geddit?
"There is no mortgage involved in saving up to buy a house outright " - yes it's like a reverse loan often prescribed for those with no credit, how much can you afford to pay each month? well save it until you have enough to buy what you want to buy. The reverse mortgage would be the same, ostensibly it is a loan and the opposite of a loan is saving, geddit?
barry: "Just because you've never heard of it doesn't mean it doesn't exist. Google it " - I have and I never said it didn't exist but I thought is sounded odd. I now see that the term does exist but it is not a reverse mortgage it's a mortgage. It's like life "insurance" there is no such thing yet it has erroneously emerged as a thing.
yes, the difference from a normal morgage is they lend you the money to put toward's the purchase of the property where as a reverse mortgage/equity releas eis they lend you the money from your equity in a property for you to spend how you want.....but in both cases its a loan that has to be repaid by monthly payments or from the eventuall sale of your property. SO I see TTT's point.sale
//Its something i am thinking about,//
whats your reason for considering it.? Would you repay it as you go along or on the sale after your death. A factor is if you have dependants who might end up with no house and the state owes a lot if you live say 25 more years so lot's of interest at a high rate will of built up
whats your reason for considering it.? Would you repay it as you go along or on the sale after your death. A factor is if you have dependants who might end up with no house and the state owes a lot if you live say 25 more years so lot's of interest at a high rate will of built up
Advantages
- You get a lump sum for what you need now
- Nothing to repay
- You can live in the house until you die and not worry.
Disadvantages
- Interest is added on and compounded
- For a relatively small amount of equity you will in all probability exhaust all the equity on your house, fine if you are not bothered about legacy.
- You get a lump sum for what you need now
- Nothing to repay
- You can live in the house until you die and not worry.
Disadvantages
- Interest is added on and compounded
- For a relatively small amount of equity you will in all probability exhaust all the equity on your house, fine if you are not bothered about legacy.