Are you a "house rich" and "cash poor" senior citizen? If so, you’ve no doubt thought about getting a reverse mortgage to help make ends meet each month. But is the cure worse than the ailment? You can’t watch daytime TV without seeing a commercial for reverse mortgages and the pitch sounds good, but is it? Financial planner and teacher Rob West has some alternatives to reverse mortgages.
On this edition of MoneyWise Live, Steve and Rob discuss these topics regarding reverse mortgages:
- The reverse mortgage pitch does sound good. Who couldn’t use a big fat lump sum payment or a nice monthly check from a reverse mortgage company?
- What are the things we watch out for with reverse mortgages?
- What are some alternatives to reverse mortgages?
Next, Rob and Steve answer these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:
- If you have a whole-life insurance policy that has been languishing, should you pull it out and invest it elsewhere?
- If you're 60 and have a IRA with $39,000 and a mortgage or $41,000 at 3.75%, is it wise to take the IRA and pay off the mortgage?
- If you're not working but your husband is, can you contribute to a Roth IRA?
- If you've received a summons regarding a reverse mortgage your dad entered into, how is this possible?
- Are reverse mortgages a good idea and can you expound on the basics of them?
- Are there other names for reverse mortgages?
- If you're 73 and have a term-life policy, should you stop that policy and start investing into prepaying funeral expenses?
- How does a young person go about getting a credit rating?
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