Don’t get a Reverse Mortgage Unless you Expect to Live in the Home at Least Five Years
- Posted by admin on May 3rd, 2007 filed in Reverse Mortgage Info
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DEAR BOB: I am way over 65 and live in my condo that is worth around $300,000. The life expectancy of males in my family is only 50 years. I am considering a senior citizen reverse mortgage, or I might sell my condo and invest the sales proceeds. Which option do you feel is best for me? –Wally D.
DEAR WALLY: If you are in reasonably good health for your age, and expect to remain in your home for at least five years, I suggest you seriously consider the benefits of a reverse mortgage.
The reason you should plan to stay in your home at least five years is to amortize the reverse mortgage up-front loan fees. To illustrate, if you are in poor health with a life expectancy of two years, a reverse mortgage would not be a smart decision.
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