Inmate Central Inmate Central, where civil and family-friendly discourse about off-audio topics (other than religion and politics) is welcome. |
|
In Reply to: OT-Reverse Mortgages posted by kavakidd on February 28, 2007 at 12:14:04:
G’day Kava,The products offered here, and the regulations governing them, are somewhat different to what is offered in the USofA.
However, I am not a fan of the principle of reverse mortgages. Other than in very specific circumstances there is usually a better alternative.
I don’t even like the term “reverse mortgageâ€. The products are essentially a loan with the interest ‘capitalised’ (nothing special about that). Though an important regulatory difference is specific ‘reverse mortgage products’ are usually tax exempt and favourable/compatible with social security.
I think the major consideration is exactly how much money you want advanced to you and what percentage of your securing asset (your house) that amounts to. (the lower the percentage the better)
Of course the terms & conditions are critically important but in IMHO they are secondary to the primary equation of the amount of money advanced as a percentage of the value of the asset.
Remember ‘compounding interest’ is quite difficult to reconcile over a number of years and any variables can have dramatic effects on the “projected outcomeâ€.
Tread carefully.
Smile
Sox
This post is made possible by the generous support of people like you and our sponsors:
Follow Ups
- Re: OT-Reverse Mortgages - three_sox 16:09:28 02/28/07 (0)