Reverse Mortgages

[senior-advisor-indiana]

I'm not trying to be an expert with reverse mortgages, i dont know much about them. I always believed and was toaught that life ins is the best way to pass on money. So if you can get a Life policy thats worth more than your house i figured that would be a win win situation. Obviosly im not a tax expert and i dont know exactly how they tax a house. I was just wondering and im not offended. Is there a fast way to become a tax expert?

 

[J.R.]

I'm not trying to be an expert with reverse mortgages, i dont know much about them. I always believed and was toaught that life ins is the best way to pass on money. So if you can get a Life policy thats worth more than your house i figured that would be a win win situation. Obviosly im not a tax expert and i dont know exactly how they tax a house. I was just wondering and im not offended. Is there a fast way to become a tax expert?

I am not a tax expert. I study health insurance for business and real estate investing for fun. Taxeation of real estate is something I have studied for fun. If you want to become a tax expert I would recommend obtaining your CPA and going from there.

 

[midwestbroker]

The advantage of reverse mortgage is that there is no credit or income to qualify for a reverse mortgage. The seniors could refi, but getting a reverse mortgage, from what I understand, is much easier.

You have a great idea Indiana, the beneficiary could pay off the loan on the house with the life money, and then have some left over. Double bonus, cash and house paid in full.

The bad side, from what I know, is that they have to pay interest on the loan (reverse mortgage). If they live a long time, could the interest surpass the value of the home?

 

[Sam]

My understanding is that they factor in potential life expectancy when figuring out how much to pay out, and that you cannot outlive the income.

 

[senior-advisor-indiana]

Well i guess we would have to use actual numbers to find out if it is worth it. It might be hard to get enough death benefit. If it works though, that could be huge commissions. Oh by the way i can get a cut if the reverse mortgage.

 

[midwestbroker]

I looked around and it looks like the loan cannot exceed the value of the property.

I emailed a reverse mortgage broker and I will tell you what they say.