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Lulu KC

(4,954 posts)

38. Have you looked into refinancing?

Sun Oct 6, 2024, 11:59 AM

Oct 6

Depending on your current interest rate, if the value of the house has increased a lot in 25 years and you haven't already done so, a refi can seriously reduce your monthly expenses. There's a fee to do it etc. and I'm sure your bank will review the possibility for you. If you're in the 2.5% interest rate already? Well, that won't help. But there are other options.

You have the impoverished feeling because you can't get to your equity easily, but you have the equity. You are sitting on plenty of money and you are doing the right thing by talking to people who know these things locally.

Your children will not inherit your debt unless you leave an estate, from which the debt will be subtracted. Since your children don't need your money or expect it, dying broke is a good option. It's the not-feeling-broke in the meantime that needs to be addressed. Sleepless nights are not good for us.

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I'm considering a reverse mortgage on my house. Anybody here have one, or know something about them? [View all] CTyankee Oct 4 OP

DON'T deRien Oct 4 #1

The bank owns the home afterward. Doesn't it? LuvLoogie Oct 4 #2

We are in our 80s and hubby is handicapped. No, we don't have accommodations for renting a room. CTyankee Oct 4 #4

Be careful. They can turn out to be expensive. Here's some info from the FTC: Ocelot II Oct 4 #3

Folksy Tom zselleck is punchable XanaDUer2 Oct 4 #5

Yes, he is. My tax guy is not; he's solid and can give me good advice. I don't think we are his first clients who have CTyankee Oct 4 #6

Better to claudette Oct 4 #7

Don't do it. Our neighbor did and regretted it later. OLDMDDEM Oct 4 #8

why did they regret it? CTyankee Oct 4 #9

The money he borrowed accumulated interest to the point where there was no equity in the house. He died and left OLDMDDEM Oct 4 #10

We don't have kids from this marriage. Neither his nor my kids would even want it and would consider it to be a pain in CTyankee Oct 4 #12

I understand your points. There are up front fees also. My neighbor's fees were about 15% of the borrowed amount. OLDMDDEM Oct 4 #13

That seems like a lot. I don't know CT's tax in my case. Again, a question for my accountant who is very familiar with CTyankee Oct 4 #14

I agree. Talk with your professional about it. Good luck. OLDMDDEM Oct 4 #15

I am a CPA and do not recommend reverse mortgages. Big Blue Marble Oct 4 #18

Doesn't sound so bad. louis-t Oct 4 #30

Beware: President Reagan was behind it! Omnipresent Oct 4 #11

Yes, reverse mortgages are part of the array of strategies by the wealthy Big Blue Marble Oct 4 #19

Trickle Up. (n/t) Iggo Oct 7 #42

I looked into one a few years back and found the terms just horrible. gristy Oct 4 #16

My 1st choice would be, if you have the funds, pay off the mortgage. Fla Dem Oct 4 #17

The key thiing here is that we get to stay in our house. The escrow amount just went up A LOT. CTyankee Oct 4 #20

Escrow should be for taxes and insurance PennRalphie Oct 4 #21

I am going to the bank that holds our mortgage to discuss this with them. They might have an idea for us. CTyankee Oct 4 #22

Good luck! PennRalphie Oct 4 #27

If you've owned your house for 25 years, it must be worth a whole lot more than you paid for it! Vinca Oct 4 #23

We did consider it but we love our home and want to stay in it for as long as we can. CTyankee Oct 4 #25

mom has one Kali999 Oct 4 #24

I have not done it, but I am extremely suspicious. Do your research. Depending on your state, you may be.. surfered Oct 4 #26

If you run the numbers they aren't as predatory as they might seem (assuming the bank is reputable) Shermann Oct 4 #28

Reverse mortgages are not terrible if you can get over some psychological hurdles MaryMagdaline Oct 4 #29

Not sure why I would even care about dying broke. CTyankee Oct 6 #36

Your kids do not inherit your debt Lulu KC Oct 6 #37

I don't know if they have changed since I did mortgages but I did not recommend them to any clients. Bev54 Oct 4 #31

It depends on your own situation. BlueinUtah Oct 5 #32

Thank you! CTyankee Oct 5 #33

Happy to help BlueinUtah Oct 5 #34

I haven't had my call with my tax preparer yet (it's tomorrow) so I'll have good info from him. CTyankee Oct 5 #35

Have you looked into refinancing? Lulu KC Oct 6 #38

Thanks. I"ll review the possibilities with them, I am sure. CTyankee Oct 6 #39

Sometimes Lulu KC Oct 6 #40

Don't feel guilty BlueinUtah Oct 7 #41