I am 64 ( retired ) and my wife is 59..We are both on the original mortgage which is paid off. To qualify she will be taken off the co-ownership of the house. We are doing this because we are broke except for my social security check so we couldnt pay any fees until the loan was in our hands. We live in Tx. and our house is in great shape and recently valued at about 125,000. Can someone please tell me what to expect?
2006-12-09 05:29:05 · 4 answers · asked by herbajones 2 in Business & Finance ➔ Renting & Real Estate
Fees will be about $5,000 and will essentially be due when the loan comes due. (Make sure you get adequate life insurance so your wife won't lose the house if you predecease her.)
2006-12-10 15:18:13 · answer #1 · answered by Byron W 3 · 0⤊ 0⤋
A reverse mortgage can have it's benefits if done correctly.
The down side is that the bank always owns the property and keeps the property upon the owner(s) passing away. The bank's expectation is that the money they pay out will ALWAYS be less than the value of the property, which is why only senior citizens are only eligible for this type of mortgage.
Like any other real estate deal, make sure you hire an attorney to protect your rights and your spouse's rights.....At any time, the mortgage can be "paid off" by selling the property....you must also check on the buyout rights and the associated costs so that your family can benefit in the future or you can sell at any time.
2006-12-09 08:48:45 · answer #2 · answered by Jeffrey F 6 · 0⤊ 0⤋
Have a look at AARP's info on reverse mortgages.
http://www.aarp.org/money/revmort/
Be VERY careful! It may even be illegal for your spouse to be taken off the deed. Your spouse may be too young for you to qualify right now. Taking her off the deed could leave her destitute when you die. As TX is a community property state it might not be possible to exclude her.
2006-12-09 05:58:08 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
i know things seem tough.. read the fine print.. it ends up..you will have nothing to leave your children..it goes to pay off the mortgage/loan if you don't have children then go for it..
maybe talk to your children..and see if they will make you a deal so you can stay...simply they will end up with nothing when you pass... get them (the children)...but read the fine print on that..maybe they will go on a mortgage with their name on title..and 50% ownership.. now you work so hard to not be a burden..but ... as well..
$125,000 seems like a lot of money but it isn't..can be gone so fast..
2006-12-09 05:49:28 · answer #4 · answered by m2 5 · 0⤊ 0⤋