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and paid about a 6% interest rate on it - you did or will end up paying an additional
300,000. in interest on a 30 year loan - now you are going to do a reverse mortgage and while your home is now worth more - if you were to do 150,000 - between closing costs and high interest rates that will cost you about 25,000 first year and as each year passes more and more money will be added to the ledger to pay them back after you are gone - so you have now paid about 600,000 - for a house worth about half of that - and they get it back INSANE.
One thing to consider is the high cost of a reverse mortgage. People are surprised to see how little of the money actually ends up in their pockets. Interest rates and mortgage insurance are high. There are closing costs and loan initiation fees.
Is there any heir who wants the house? This is a big consideration. Paying back the loan at the end would probably be more than most would want to pay. Enter into reverse mortgages very cautiously. Personally, I wouldn't consider one for any reason. If I couldn't afford to continue living in a house, I would sell.
But the marketing pitch of reverse mortgages isn't always for necessities; it's often for glamorous lifestyles. Give me just my good old garden - I don't need to climb mountains to be satisfied.
I just think that too many activities which are targeted toward seniors are high cost and involve more than is necessary to relax. One doesn't need to spend exorbitantly to find relaxation and excitement.
There are community gardens, local parades, and music concerts in the summer and other activities which are either free or cheaper and could be just as enjoyable. That's what we go for - we've heard some really great string bands over the last several years, all for free. Just being out in the fresh air, listening to the dynamic music, and watching the little children create their own dance movements is wonderful entertainment. Last year there were 3 people in wheelchairs - their families brought them. I keep thinking what a wonderful way for them to get fresh air and relax!
If priorities changed, perhaps people wouldn't feel so much pressure to have money for nonmedical activities in their older years. Reverse mortgages exploit older people and create situations in which it's virtually impossible for the house to end up in any way except acquired by the reverse mortgage lender.