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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76238  
Subject: Re: roll your own reverse mortgage Date: 9/17/2005 11:10 PM
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ww4321 posts,

http://www.ezinearticles.com/?Before-You-Say-No--See-7-Reasons-Why-You-Should-Roll-Your-Own-Reverse-Mortgage&id=61989


I just did a quick calculation for someone taking a $500,000 mortgage and buying a $500,000 annuity for a home in Houston, TX.

e-loan $500,000 mortgage, 30-years fixed at 5.75% = $2,918/monthly payment

Vanguard life annuity for a 65-year-old male, $500,000 premium = $3,257/month benefit.

Increased cashflow = $3,257 - $2,918 = $339/month = $4068/yr.

In Houston, a taxpayer over age 65 can defer his property taxes indefinitely with out penalty (though he pays 8% per annum interest on the unpaid balance, which is recouped when the home is sold or the owner dies.)

http://www.chron.com/cs/CDA/ssistory.mpl/business/lipman/2983601

On a $500,000 home, property taxes would be $12,000 to $15,000 per year.

I'd do a tax deferral before I'd do a reverse mortgage, or a "roll-your-own" reverse mortgage.

intercst

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