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alleyland1 · Joined: 21 Apr 2009 Posts: 1 1.54 Dollars($)

Can you tell me if I'm making the best decision in the following scenario?:

Three years ago I paid off my 30 yr old house but it needed considerable maintenance and upgrades and pensions covering my monthly living expenses were the only income I had. Torn between a reverse mortgage (I'm 84) or a first mortgage, I went for a 10-year interest only (5.75% fixed but adjustable after 10 yrs) mortgage, due and payable in 7 years. I now have the opportunity to convert that to a P & I 30 yr mortgage at the same rate, making an additional $100 per mo payment. There are no loan fees payable. Either way it's a gamble if I'll ever pay off either loan in my lifetime. Am I doing the right thing by switching to the 30 yr mortgage? Thanks for your help. Incidentally, the value of my house has dropped from $450,000 to $229,000 in the last year.
[Email address deleted as per forum rules. Thanks.]

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

Alley,

How much was the loan for?

Guest

Original interest only loan was for $107,000. New P & I loan same amount but just learned interest is lower by .25% (5.5%) Thanks for response.

Posted: Mon Apr 27, 2009 4:15 am Post subject:

Hi alleyland

I don't think it's a good option to switch to a 30 year mortgage as it is a long period of time. It would be better if you could stick to the current mortgage that you have. If you want to refinance in order to lower the rates, you should go for a 15 year mortgage.

Thanks.

Niicss · Posted: Mon Apr 27, 2009 4:24 am Post subject:

Hey...it was me above. I just forgot to log in. Smile

SSPINGARN · Posted: Thu May 07, 2009 11:01 am Post subject:

i would do a reverse mort seems like your best option

shayneroy · Joined: 12 Nov 2007 Posts: 51 21.08 Dollars($)

I second SSPINGARN

Realgeni · Joined: 13 Apr 2009 Posts: 1434 99.76 Dollars($)

Yep Reverse is good. but make sure you give some one a QuitClaim or add some one to the deed.

Only thign would be, they will responsible for the loan after your death.

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