Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of time
for the value of the house (a little less than market value) and upon his
death, the property is immediately transferred to the mortgage company. I
may be a little bit off on the explanation but it is kinda my understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed to
leaving it to my sister and I.


--
Ryan KC8PMX

"Give a person a fish and you feed them for a day; teach that
person to use The Internet and they won't bother you for weeks."

60's and up getting those mortgages. Go figure.

Actually, now that I think about it, there is a certain twisted logic to
it. In
general, people are living longer now, so the chances of someone actually
paying off the mortgage is better than before. Conversely, if the person
dies,
the mortgage company gets their money quickly, from the estate.

On top of all this, such policies insure that the mortgage companies don't
have
to worry about claims of age discrimination.

73 de Jim, N2EY

Ryan, KC8PMX wrote:
Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of time
for the value of the house (a little less than market value) and upon his
death, the property is immediately transferred to the mortgage company. I
may be a little bit off on the explanation but it is kinda my understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed to
leaving it to my sister and I.

Trust me, that is a better solution.

- Mike KB3EIA -

Yep. That's it. The bank loans him a little bit of money each month (or
whatever period) and adds it to the loan balance. If he lasts long enough
he will be paid the full amount of the house and the bank owns it.
Steve K;9;d;c;i


"Mike Coslo" wrote in message
...
Ryan, KC8PMX wrote:
Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of
time
for the value of the house (a little less than market value) and upon
his
death, the property is immediately transferred to the mortgage company.
I
may be a little bit off on the explanation but it is kinda my
understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed
to
leaving it to my sister and I.

Trust me, that is a better solution.

- Mike KB3EIA -

"Mike Coslo" wrote in message
...
Ryan, KC8PMX wrote:
Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of
time
for the value of the house (a little less than market value) and upon
his
death, the property is immediately transferred to the mortgage company.
I
may be a little bit off on the explanation but it is kinda my
understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed
to
leaving it to my sister and I.

Trust me, that is a better solution.

- Mike KB3EIA -

Reffering to the old man leaving money to the kids, versus enjoying it now??
He stated a long time ago, that my sister gets everything! Don't really
care as long as he doesn't leave expenses we might be liable for. I have
actually provided for myself since I moved out after I turned 18. Now if
others want to leave me in their will, that is just fine HIHI!



--
Ryan KC8PMX

"All of us could take a lesson from the weather. It pays no
attention to criticism."

In article , "Ryan, KC8PMX"
writes:

Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of time
for the value of the house (a little less than market value) and upon his
death, the property is immediately transferred to the mortgage company. I
may be a little bit off on the explanation but it is kinda my understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed to
leaving it to my sister and I.

Yep, those are reverse mortgages, and they're a useful tool. Essentially they
let a person get the equity out of a paid-off house without selling it.

But there are certain things to check very carefully. For example, what
interest rate is used and what are the tax ramifications? What happens if,
heaven forbid, you dad signs the papers and passes away a few days/weeks/months
later? Or, what about just the opposite, if he outlives the mortgage? (I know a
93-year-old still active and living alone in his own, paid-off house).

There's also the issue of what happens if he has to go into a nursing home-type
situation somewhere down the road.

73 de Jim, N2EY

Well, of course there is no such thing as a simple one sentence answer in
these regards. Specific details would have to be investigated for each
person. In my old man's case..... he feels it is a good deal. And the
funds that he would be recieving would go to his investments which would
yield a better dividend to him, and if things get really hairy, he can
always utilize those funds for care. Again, not the same for others.


--
Ryan KC8PMX

"Why is it one careless match can start a forest fire, but
it takes a whole box to start a barbecue?"



But there are certain things to check very carefully. For example, what
interest rate is used and what are the tax ramifications? What happens if,
heaven forbid, you dad signs the papers and passes away a few
days/weeks/months
later? Or, what about just the opposite, if he outlives the mortgage? (I
know a
93-year-old still active and living alone in his own, paid-off house).

There's also the issue of what happens if he has to go into a nursing
home-type
situation somewhere down the road.

73 de Jim, N2EY