Compare Mortgage Quotes

clemke75 · Joined: 25 Feb 2010 Posts: 7 2.21 Dollars($)

My parents are living in their home with 24 hour care and we(children/trustees) will soon need to get money to keep them in their home.
As we all know, there is no way to predict how long they will be there and how much money we will need. If I understand right, a reverse mortgage for a short term will be very costly but would give us the cash we need. Are there other options using their home as collateral that would not be as costly? They have other properties but we will need the money soon and have been unable to sell the other properties.
Any advice?

tfaulhaber1 · Posted: Thu Feb 25, 2010 9:20 am Post subject:

You can possibly take out a line of credit. The closing costs are minimal. Whether its a reverse mortgage, line of credit, or a cash out refinane, you will need equity in the property to pull out. What is the value of there home and how much is it worth?

clemke75 · Joined: 25 Feb 2010 Posts: 7 2.21 Dollars($)

We have not had it appraised yet and there is nothing comparable in the area. What is the difference between value and worth?

clemke75 · Joined: 25 Feb 2010 Posts: 7 2.21 Dollars($)

Looking at other homes in the area that have sold, their house could be valued at $150,000-175,000

tfaulhaber1 · Posted: Thu Feb 25, 2010 10:08 am Post subject:

Sorry, I meant value vs. mortgage. How much do they owe and what is the value..

clemke75 · Joined: 25 Feb 2010 Posts: 7 2.21 Dollars($)

Their mortgage is paid off.
Looking at other homes in the area that have sold, their house could be valued at $150,000-175,000

clemke75 · Joined: 25 Feb 2010 Posts: 7 2.21 Dollars($)

Their mortgage is paid off.
Looking at other homes in the area that have sold, their house could be valued at $150,000-175,000

tfaulhaber1 · Posted: Thu Feb 25, 2010 10:45 am Post subject:

How old are your parents?

clemke75 · Joined: 25 Feb 2010 Posts: 7 2.21 Dollars($)

my dad is 82 and my mom will be 79 in March

tfaulhaber1 · Posted: Thu Feb 25, 2010 11:05 am Post subject:

Do you currently reside with your parents?

clemke75 · Joined: 25 Feb 2010 Posts: 7 2.21 Dollars($)

No, they have paid caregivers

raymond · Posted: Thu Feb 25, 2010 5:20 pm Post subject:

If their house appraised for $175,000.00, they'd receive 106,811.00 in cash, or 718.00 per month as a tenure payment. The tenure payment lasts as long as the home is their primary residence, but if it's not enough to cover their care costs, they can also receive a monthly check that matches those costs, but only for a specific period of time.

The best solution is as Ted recommended - a Home Equity Line of Credit. However, chances are they're not going to be able to qualify for it, and there'll also be a monthly mortgage payment associated with it. That's where a Reverse Mortgage steps in ... it feels the gap.

How much do you need per month in order to maintain your parents? And what are you going to do once the cash runs out - if they're still alive? These are questions best presented to an Estate Planning Attorney, because you may have to use the Medicaid system at some point, and you need to properly prepare for that, which is what a good Estate Planning Attorney is all about.

Guest

My parents need $6,000.00 per month to stay in there home.

raymond · Posted: Mon Mar 01, 2010 8:46 am Post subject:

The best way for you to do it is take the $106,811.00 and put it into a high yielding money market account that'd enable you to write checks against it. The money will last approximately 18 months. After that you won't receive anymore cash, but the Reverse Mortgage will still be in effect, so you won't have a monthly mortgage payment.

18 months isn't very long ... a Reverse Mortgage probably only makes sense if they're terminal.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1