[onelove1075]

i know very little about them and my dad is considering doing one. he is in his 60's has a ton of equity in his home and plans on croaking on his couch some day hahaha. is this a good idea? what if he ends up in a nursing home down the road(much to his dismay) he has to pay back by selling right and the bank gets the money they are giving him now (he is taking a lump sum)with interest? what is an average interest? is it set now or in 20 years? i appreciate any info anyone can tell me. im sort of skeptical about the whole thing. i just dont know if this whole reverse mortgage is a good idea and i dont want him getting screwed in the long run. thank u so much!!!!

[Lucky111's]

I don't know but I do know that you can refinance the house for 30 years and take some cash out and probably get a lower rate. Your Equity is key. Figure on a drop in your homes value due to the current market. But you should be able to get 5% or lower and up to 80% of your homes value and have the refinancing costs rolled into the loan. This will get you some cash now and a lower rate (assuming you have 7% or more) the drawback is your new loan will mean you pay more interest over the life of the loan but if you do it right your payment will be significantly lower. And if he doesn't pay it off before he dies you can sell it or just hand it over to the bank...if you pull most of the equity out of the house then giving the house up isn't losing anything.I would look for mortgage calculators and reverse mortgage calculators and guides online I am sure they can help you figure out if either option is ideal.