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Anyone ever tried one? Know anyone who did? Comments?"Man is the only animal that blushes - or needs to" Mark Twain
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I believe that it is a way for the banks to tap into your home equity and make you borrow your own equity.
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 mortgage”. 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 outcome”.
Tread carefully.
Smile
Sox
But, be aware that many companies tack on fees that must be paid on a regular basis. Unless you're careful you'll lose a LOT of $$.
gee, if we knew someone with exp. in the real estate business we could ask them....
Fudd's First Law of Opposition
If you push something hard enough, it will fall over.
Teslacle's Deviant to Fudd's Law
What goes in, must come out.
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