http://www.mapgirl.net/mfc/2006/05/25/reverse-mortgages/ Just tidbits about money and finance. Thu, 20 Nov 2008 18:49:40 +0000 http://wordpress.org/?v=2.5 http://www.mapgirl.net/mfc/2006/05/25/reverse-mortgages/#comment-477 mapgirl Fri, 26 May 2006 08:50:00 +0000 http://www.mapgirl.net/mfc/?p=322#comment-477 Thanks for your input Catrijn! It could make a lot of sense to do a reverse mortgage in the right circumstances, but my feeling is that the 'right circumstances' is different for everyone and narrowly defined. The better thing to do is to save for retirement and home upkeep. Thanks for your input Catrijn! It could make a lot of sense to do a reverse mortgage in the right circumstances, but my feeling is that the ‘right circumstances’ is different for everyone and narrowly defined. The better thing to do is to save for retirement and home upkeep.

]]> http://www.mapgirl.net/mfc/2006/05/25/reverse-mortgages/#comment-476 Catrijn Fri, 26 May 2006 05:55:00 +0000 http://www.mapgirl.net/mfc/?p=322#comment-476 One of the most common times I've seen people move to reverse mortgages is when they reach the point where they are unable to live on their own and need full-time care. In-home care is very expensive and frequently not accounted for in retirement plans. Once people reach the point where they have exhausted their own funds, it's not uncommon to be faced with a choice between selling the house and using the proceeds to pay for a nursing home, or taking a reverse mortgage and using it to pay for in-home care. I think in that kind of scenario it makes sense, but it'd be foolish to plan on a reverse mortgage as part of your regular retirement income. (Disclaimer: my mom worked in geriatric social work for a while, which is how I've seen this scenario play out. This may or may not be a representative sample.) One of the most common times I’ve seen people move to reverse mortgages is when they reach the point where they are unable to live on their own and need full-time care. In-home care is very expensive and frequently not accounted for in retirement plans. Once people reach the point where they have exhausted their own funds, it’s not uncommon to be faced with a choice between selling the house and using the proceeds to pay for a nursing home, or taking a reverse mortgage and using it to pay for in-home care. I think in that kind of scenario it makes sense, but it’d be foolish to plan on a reverse mortgage as part of your regular retirement income. (Disclaimer: my mom worked in geriatric social work for a while, which is how I’ve seen this scenario play out. This may or may not be a representative sample.)

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