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reversemortgage Factoid on Retirement (0 viewing) 
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TOPIC: reversemortgage Factoid on Retirement
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reversemortgage Factoid on Retirement  
Ok, I'm back. Say I'm 62, penniless, I own a $300K home. I would sell the home and get myself a seniors apartment in a seniors building for $600 month around here. I party with my buddies, go on bus tours, put our loose change together to hire a hooker now and then ... don't laugh, it's been done At even 5%, the $300K would get me $15K/year ... $1250/month ... Well, if you stayed in the house you wouldn't be paying that $600 a month, so to compare apples to apples, you should reduce that $15k income to $7800, or 2.6%. But that $600 doesn't buy the same size living quarters, does it? So we still can't really compare apples to apples because the standard of living has changed. Would you, having gotten used to the large house, really be comfortable in the $600 rabbit hutch? And, Joe, to answer your question in another post, the homeowner is still responsible for taxes, repairs, etc. on the house. But then, I can agree with Bowgus, that it might be better to downsize first. The reverse mortgage is often a godsend for couples who want to stay in their own home, especially if they've already downsized. Elizabeth Richardson
 
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reversemortgage Factoid on Retirement
Elizabeth Richardson 2008/04/24 23:02
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Elle 2008/04/24 23:02
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