Thread by @CABirdGirl2

Seniors 🚨First in a series geared to seniors who are considering a Reverse Mortgage. This should be your last resort. I saw it coming due to California's gouging us taxpayers with utility costs due to our corrupt Gov. & CPUC. (Climate 'crisis.')

Companies that advertise on TV? Pass, I think. The one with Selleck? Sued, changed names 2X. Do your research. Many are out there. I happened to choose wisely. I contacted them with the go-ahead on January 4th. I will be getting money, supposedly next week, March 21st or so.

That is with "rushing" everything. Stay on it. This *will* be one of the worst experiences of your life, IF you have had someone else handle mortgages, appraisals, etc. on your home OR if you've been a renter. The learning curve is steep and very stressful.

Your appraisal seems to be like a "Trump special" with a favorable amount for the loan's line of credit, (LOC) itself. However, don't die. When you do, that high appraisal will be used as a tax base for your heirs, and will be taxed on the gains from when you bought/inherited.

Mortage insurance takes a huge bite out first, mandatory by the Federal Government. On a LOC (line of credit) the insurance is approx. $24K on a LOC of $460K. Costs up front are about $35K. Again, if you have another option, do that, instead.

The appraiser has a final say as to what is needed. He can look under the house, in the attic, will take photos of every inch inside and outside of your home. Heads up; keep it well maintained, clean, no messes anywhere because photos ARE taken. The Feds and CA get those photos.

Your interest rate will be adjusted if the prime rate goes lower. Same with if the prime rate goes higher. A good company will give you a rate of return to increase the value of your home, making your LOC higher from which to draw funds when needed.

To apply, your lender must run all 3 credit reports at the same time. You must not have any negative information. The old joke, prove you don't need a loan - to get a loan - is very accurate here. You will be turned down if you're late in paying. Don't stall.

Be sure to take out only what you need, as you will be paying interest charges from Day One on that amount. I'm told it will take 60-90 days to establish a line of credit you can access for more money, if you need more. Choose wisely.

CA residents, this negates your Prop 13 protections if you sell/move. It does NOT if your home is destroyed by a quake or fire; if you rebuild on the same site. Serious considerations. Be smart about it.

@threadreaderapp Kindly unwrap - thank you very much.