>why do they charge so much to set up what is basically a lien on your
>property?
>
>
risk that some might live longer than expected / risk that values may
actually ........ drop
Clams has it right. It's an expensive proposition for the mortgage
issuer and may not work that well for you.
If you have to move from your house for medical or other reasons, you
may lose your house.
It would be better to refinance your house and buy an pre-paid annuity
assuming you are over 70 and in good health.
If you develop disabilities, you may want to move to a new house or
condo that will have fewer impediments.
--
Ron
They are taking a risk that you will live a very, very long time.
Meaning that, they would start forking over the money now, and
have to wait and wait and wait before the investment pays off, in
the form of them getting possession of the house.
Sure, you might be squashed by a bus tomorrow. Or you might live
much longer than average.
--
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>In article <georgewkspam-C46E...@sn-ip.vsrv-
>sjc.supernews.net>, george...@humboldt1.com says...
>
>
>>why do they charge so much to set up what is basically a lien on your
>>property?
>>
>>
>
>
>They are taking a risk that you will live a very, very long time.
>Meaning that, they would start forking over the money now, and
>have to wait and wait and wait before the investment pays off, in
>the form of them getting possession of the house.
>
>Sure, you might be squashed by a bus tomorrow. Or you might live
>much longer than average.
>
>
>
>
There is also a high risk that you might not keep up maintenance on your
home, resulting in reduced value.
Well, I proposed to an possible investor, a closed term of 12 yrs.
and a very modest loan of $120 K plus interest . 1/3 acre in California.
I'm 65 with Diabetes. May live to 83, like my father but the loan gets
repaid in 12 yrs. or sooner. good deal for someone. and I only need
one.