Quote:
Originally Posted by Moses
One potential problem with reverse mortgages is that the home owner will never benefit from any increases in the property value after the reverse mortgage is established.
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1st) This is just not true.
2nd) "they encourage piss poor planning, have high fees and will do more to eliminate the build up of family wealth than the estate tax people get so pissed about.
why not just sell your house, take the cash and rent somewhere?
i don't think reverse mtgs will be around in 10yrs."
Just the oposite. Since the FHA steped in with new regulations a few years ago. the plans have become much more effecitve for planning. The Reverse Mortgage will become as common place as a 30 year morgage.
Reverse mortgages are not good for depressed areas with little capital appreciation potential. You would only destroy family wealth if the property couldn't appreciate as fast as the loan compounded.
Like any tool it works best when used approprately. However, I know for some financial sales people when all you have is a hammer everthing looks like a nail.