“I have voted for every...improvement...now I can’t afford to live here anymore"

[chucky2]

Aren't they giving you money now while you're alive, and then when you die, the property goes to the reverse mortgage holder?

 

[fskimospy]

Aren't they giving you money now while you're alive, and then when you die, the property goes to the reverse mortgage holder?

No.

http://en.m.wikipedia.org/wiki/Reverse_mortgage

 

[highland145]

Aren't they giving you money now while you're alive, and then when you die, the property goes to the reverse mortgage holder?

Or move out but you/your kids can pay back the mortgage + interest. Upside for the owner is cash in hand now. Possible upside for the kids is that the house has appreciated enough for them to sell it within 1 year, pay the mortgage and still profit.

I'd have to look for it but, iirc, the downside for the rest of us is that it's a federally backed loan.

It was a great idea for my in-laws but the problem was caused by poor $$ management to start with.

 

[fskimospy]

Or move out but you/your kids can pay back the mortgage + interest. Upside for the owner is cash in hand now. Possible upside for the kids is that the house has appreciated enough for them to sell it within 1 year, pay the mortgage and still profit.

I'd have to look for it but, iirc, the downside for the rest of us is that it's a federally backed loan.

It was a great idea for my in-laws but the problem was caused by poor $$ management to start with.

The basic idea is that you take out a loan based on the value for your house. The loan can be for whatever value you want and it comes due when you die or sell the house, basically. When the loan comes due your children can repay the money you took out you can sell the property, pay off the loan, and pocket any additional value, or the lender can get the house.

If you have a house that has appreciated in value so enormously that your property taxes alone are more than your mortgage and property taxes were before, you probably have a lot of appreciated value you could extract with a reverse mortgage if you didn't want to leave there.

 

[highland145]

iirc, roughly 2/3 of the value, max.


Edit: the in-laws got 2/3 of the appraised value. The wiki link shows about 50% but I think that's because of the interest rate shown.

 

[halik]

That's some sound financial advice. Use your home as a credit card to pay for government excesses in spending. What could go wrong??

You do realize that taxes go up when your property appreciates, but millage stays the same... right? Reverse mortgage or heloc lets you take some of the money out without having to sell (ie can't afford to live there anymore)

 

[desy]

Yep
If you get priced out of the market you do have choices, move, find additional income, take equity out of your home.
Nobody says everything stays the same, forever, until you die

 

[Zorba]

Yep
If you get priced out of the market you do have choices, move, find additional income, take equity out of your home.
Nobody says everything stays the same, forever, until you die

Then you never really own your house.

 

[Vic]

Then you never really own your house.

Because you have to pay property taxes of a thousandth or so of the property's value? And these taxes go to roads, infrastructure, schools, and law enforcement, all of which serve to improve your property's value?

OMG this sucks!

 

[Vic]

No need to argue about property tax. She got the government and policies she voted for.

She went full libtard. The concern is she'll go somewhere else and do the same thing. Liberals are like locusts consuming all they touch.

Liberals will never understand the impact of thei stupidity even when it hits their own best interests. It's a disease of the mind.

You know what I find funny about your bullshit? It's the fact that I know that homeowners in affluent communities always happily pay for the best schools and infrastructure.
Fuck, most voluntarily pay as much or more in HOA fees than they do in property taxes, just to add another layer of prestige.
This is just yet another way that I know you're a lying troll.

 

[DCal430]

If texas is like California, improvements she mentioned could also be done through increase property taxes. Here in California one of the main ways of funding such improvements is through a parcel taxes which are part of property taxes. They can be done on a flat rate per property, or a rate based on square feet per property.

A school district could enact a parcel tax that says each sq feet of land you own is taxed at 5 cents a year. This would help fund the schools, in addition to the standard percent based taxes.

 

[desy]

You never own your house, you are always a renter.
You have to pay tax 'rent' or condo fees 'rent' just try and not pay them and see how long you can stay in 'your' house. If you do have to borrow against your property its happening at the end of your life usually and you can't take it with you.
If you can' sustain the money before your kick off or you are obsessed with leaving something for kids or charity and whatnot then you have the other choices mentioned

Everybody exists in an illusion of self determination. You are never free in a society as there are always laws, rules, social conventions and norms.