Your thoughs on "Reverse Mortgage" into PM's
Kareemofwheat
Posts: 200
Hi..I am 71 years old, one dependent (daughter). I have some gold and some silver. I have a chance to with drawl $80,000 in cash from my condo, live in it free until death.
My monthly income gets me by at this time but would I be better off putting that into PM's before the value of my condo drops more and have something better than a paper dollar in hand. My daughter is fine financially and does not wish to acquire the condo.
Thank yo for any thoughts.
Jon
My monthly income gets me by at this time but would I be better off putting that into PM's before the value of my condo drops more and have something better than a paper dollar in hand. My daughter is fine financially and does not wish to acquire the condo.
Thank yo for any thoughts.
Jon
0
Comments
<< <i>If you have good income coming in I'd say go 100% gold on the 80K. JMO, better than a savings account. >>
I get by just fine on my retirement income and savings
While you can always back out of any subsequent PM purchases that may not be working out as planned, you can't back out of the reverse mortgage. Reverse mortgage only sounds like a good deal for someone needing to sell a property but yet unable to find a buyer. It's probably safe to say you are being offered pennies on the dollar and a contract that should be carefully scrutinized by a reputable attorney. There are probably clauses all over the contract that allow them to throw you out while they're waiting on you to die. Who in their right mind would offer a decent reverse mortgage price in this real estate enviornment?
If you're ansty to put more money in PMs maybe your IRA or 401k will allow it via equities that track PMs.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
When guys like this ask questions like this, it tells me we are due for a wicked correction
I don't know much about these things but these are concerns I would have. Taking the $80K is nice, but not if you leaving a lot of equity behind and still need a place to live. I'm guessing $80K would cover a year, maybe two, in an assisted living type place.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>Depends on what the condo's worth. Might be better to sell it, and rent another condo. Might give you a lot more than $80K to fund PMs and pay rent. I personally don't want to deal with someone that's betting I will die sooner rather than later. Makes me a bit reluctant to go out of the house. Why not take an $80k mortgage on the condo and invest that. Sell off enough every three months to cover mortgage payments.
While you can always back out of any subsequent PM purchases that may not be working out as planned, you can't back out of the reverse mortgage. Reverse mortgage only sounds like a good deal for someone needing to sell a property but yet unable to find a buyer. It's probably safe to say you are being offered pennies on the dollar and a contract that should be carefully scrutinized by a reputable attorney. There are probably clauses all over the contract that allow them to throw you out while they're waiting on you to die. Who in their right mind would offer a decent reverse mortgage price in this real estate enviornment?
If you're ansty to put more money in PMs maybe your IRA or 401k will allow it via equities that track PMs. >>
I can stay here till I croak...free..its paid for but if I last a few more years, the condo will be worth less when she sells it. The reverse is through the government, I can get $80 grand up front, live in it until I die, the government then sells the condo and recoups their money and interest and my daughter gets whats left over plus my PM,s and other property.
<< <i>Do you want an honest answer or are you searching for someone to tell you what you want to hear? >>
What the hell do you think..I dont play games!!
<< <i>I can stay here till I croak...free..its paid for but if I last a few more years, the condo will be worth less when she sells it. The reverse is through the government, I can get $80 grand up front, live in it until I die, the government then sells the condo and recoups their money and interest and my daughter gets whats left over plus my PM,s and other property. >>
I knew the gov had gotten into the car business, now they're in the condo business?
Just make sure the gov doesn't know they're money is going into PMs.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
Actually you can pay off a reverse mortgage, it's just not done very often.
What I would do, if I could afford the payments, is mortgage the property to the hilt with a 30-year fixed at 5% to 6% interest, then let the coming wave of inflation help you pay off the debt. Use the proceeds to dollar cost average into precious metals or any other investment of your choice.
My Adolph A. Weinman signature
<< <i><< While you can always back out of any subsequent PM purchases that may not be working out as planned, you can't back out of the reverse mortgage. >>
Actually you can pay off a reverse mortgage, it's just not done very often.
What I would do, if I could afford the payments, is mortgage the property to the hilt with a 30-year fixed at 5% to 6% interest, then let the coming wave of inflation help you pay off the debt. Use the proceeds to dollar cost average into precious metals or any other investment of your choice. >>
Good suggestion. I would go all in on the first good dip and sell off every three months just enough to cover mortage payments. OP needs instant profits to build his mortgage payment funds. Ideally, with a good runup in PMs he could payoff his mortgage and still have a decent PM stash.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>bad idea. Buy low, sell high. At the very least you are selling low and buying high hoping for the low thing to go lower still and the very high record price thing to continue higher still >>
I agree with the above. (And I would be very leery of a reverse mortgage, even one being offered through a government program.) 71 is just not that old. And unless I had an urgent need for the 80K, - I wouldn't trade for PM's right now. I'd prefer to keep my future options open...
Michael Kittle Rare Coins --- 1908-S Indian Head Cent Grading Set --- No. 1 1909 Mint Set --- Kittlecoins on Facebook --- Long Beach Table 448
<< <i>If it were a second or third home for you (an investment) maybe... but don't mess around with your primary residence... >>
Bingo!! Very sound advice
When guys like this ask questions like this, it tells me we are due for a wicked correction
the top in metals prices is near
Liberty: Parent of Science & Industry
<< <i>I can stay here till I croak...free..its paid for but if I last a few more years, the condo will be worth less when she sells it. The reverse is through the government, I can get $80 grand up front, live in it until I die, the government then sells the condo and recoups their money and interest and my daughter gets whats left over plus my PM,s and other property. >>
You've got me totally confused with the above statement. The gov't owns your property & is willing to give you a reverse mortgage? And the condo will be worth less in a couple of years? Something does not compute.
If you have family that you wish to leave an estate to, I would
not recommend a reverse mortgage. Investing i heavily in PMs
has a strong speculative aspect to it as today's drop in silver in
asia shows. I would not risk my primary residence in the hope of making
a killing. Remember, you are up against financial sharks who do this sort of
thing for a living. Slow and steady stacking of a reasonable portion of your
available assets is the way for us average folks to go.
Camelot
<< <i>A reverse mortgage has a large cost factor attached to it.
If you have family that you wish to leave an estate to, I would
not recommend a reverse mortgage. Investing i heavily in PMs
has a strong speculative aspect to it as today's drop in silver in
asia shows. I would not risk my primary residence in the hope of making
a killing. Remember, you are up against financial sharks who do this sort of
thing for a living. Slow and steady stacking of a reasonable portion of your
available assets is the way for us average folks to go. >>
Thanks Bear AND thanks to all who left their thoughts. I appreciate each very much. I think I will hold and when I pass, my daughter may do what she wishes
Regards
Jon
<< <i>
<< <i>Do you want an honest answer or are you searching for someone to tell you what you want to hear? >>
What the hell do you think..I dont play games!! >>
What do I think? I think you're searching for someone to tell you what you want to hear so that you have an exuse for losing it all in the event that happens. That's what I think.
But since you asked what I think , I think you're nuts for even considering a "reverse mortgage" then taking the money and putting it into metals. You're setting yourself up to lose it all.
Edited to add: I didn't read the post made prior to making this post.
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>
<< <i>
<< <i>Do you want an honest answer or are you searching for someone to tell you what you want to hear? >>
What the hell do you think..I dont play games!! >>
What do I think? I think you're searching for someone to tell you what you want to hear so that you have an exuse for losing it all in the event that happens. That's what I think.
But since you asked what I think , I think you're nuts for even considering a "reverse mortgage" then taking the money and putting it into metals. You're setting yourself up to lose it all.
Edited to add: I didn't read the post made prior to making this post. >>
AH!
I like reverse mortgages for folks that need/want the cash to live on.
Not so much for folks that wanna invest/speculate with the proceeds.
RMs Not For Everyone
.............................
I think gold is going to the moon, but I don't think I wanna
sell/mortgage free-and-clear RE to buy metals.
At some point - I dunno when - RE will likely have a role to play as
an inflation hedge. Thinking that RE will always be in decline is faulty.
It will prolly go down lots more from here, but it won't go down "forever."
If RE is generating a nice place to live OR rental income, I would not
be in a rush to encumber it.
A tiny mortgage or credit line is prolly the better route, if you just wanna
get a little cash to speculate with. (Some RMs are heavily frontloaded with
fees; much more so than a simple HELOC.)
LOTS of study is appropriate b4 making a firm decision.
<< <i> ........ The reverse is through the government, I can get $80 grand up front, live in it until I die, the government then sells the condo and recoups their money and interest and my daughter gets whats left over plus my PM,s and other property. >>
The 'government' ? Which one or should I ask whose? The government has no such program. You're being played by a scammer which is how every story about reverse mortgage I hear winds up. They're just finding a way to get their hooks into your assests. If there existed a way to fast and easy riches, you'd have found it by the age of 71. Be glad you have a roof over your head and don't gamble with it or you're gonna be crying.
<< <i>
<< <i>I can stay here till I croak...free..its paid for but if I last a few more years, the condo will be worth less when she sells it. The reverse is through the government, I can get $80 grand up front, live in it until I die, the government then sells the condo and recoups their money and interest and my daughter gets whats left over plus my PM,s and other property. >>
You've got me totally confused with the above statement. The gov't owns your property & is willing to give you a reverse mortgage? And the condo will be worth less in a couple of years? Something does not compute. >>
You're forgeting the the calculations are being computed by the government!
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>When guys like this ask questions like this, it tells me we are due for a wicked correction >>
OP caused tonights silver plunge!
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey