Posted by John Corey on May 24, 2006 at 08:27:48:
The loans server different purposes with some overlap.
The cash out implies a monthly payment to the lender. The reverse mortgage pays the home owner a monthly payment. A bit closer to an annuity though a reverse mortgage and an annuity are not the same.
Take a look at the HUD site for more info.
John Corey
best way to maximize reverse mortgage pay out - Posted by ilana
Posted by ilana on May 23, 2006 at 11:31:25:
If I can obtain a $43000 reverse mortgage, can you advise me what might be the best way to maximize payment, i.e. credit line, monthly payments, lump sum or other. Thank you
Re: best way to maximize reverse mortgage pay out - Posted by John Corey
Posted by John Corey on May 23, 2006 at 13:47:42:
I am not expert on the topic. I have done some recent research.
There are a lot of variables concerning your life expectancy and other such things. There is also some estate planning issues related to what you expect to happen after you die and if you should need long term residential care. Hence the right answer for one person might not be the right answer for a different person.
Go to http://www.hud.gov/ and then on the search menu for the HUD site (search just the site) put in reverse mortgage. You will find a number of details. Some of the info was produced with the AARP.
I will do some more reading and see if I can spot any obvious answers or ways to view your questions.
John Corey
Why? - Posted by rick m
Posted by rick m on May 23, 2006 at 22:21:07:
Why would you want to do a reverse mortgage when you could do a total cash out and reinvest the money? w/ compounding interest wouldn’t you be ahead of the game?