well, I'll probably get kicked off with this question.

I've done all the homework and it seems like a reverse mortgage is the best answer for me to have more money and then I can travel more.

Have any of you travelers done a reverse mortgage and are happy, unhappy with it?

I would pose this question to my financial advisor.

In short, no, it doesn't make sense unless you are so financially astute, you have the discipline to make it work for you.

Since you must jocky your mortgage to travel, you may want to explore other options: cheaper home, second job, etc.

GoTravel, I said I had done my homework...meaning financial advisor thought it was a good idea.

I was looking for answers from someone who has done it!

I'm not affialited in anyway with any realtors. I just see all kinds of questions on this post and finally got enough nerve to post my own.

Sharon....I am not quite ready for a RM, or even a HELOC for that matter.But I have discussed those alternatives with my CFA...He and my local banker both strongly advised me that travel is not a necessity in life.I'm surprised your FA thought it was good idea.The bottom line, its your money.Best of luck...Stephen

If you are 75 or so, have no heirs you want to leave anything to, have enough other money to assure living comfortably the rest of your life, but not enough "extra" to travel with, then I say go for it. Otherwise, probably not.

Patrick has a good point that this might make sense for senior citizens who are otherwise financially comfortable. Of course, without knowing your age, financial status and other personal information it's almost impossible for anyone here to answer your question.

I too am surprised your FA recommends borrowing money (let's not forget that is what a RM really is) to spend on consumables especially travel but then again I don't know your present financial condition. I personally would never borrow money to travel but as others have said it is your money so do what is right for you.

I am shocked that a money person would advise this unless as Patrick said, you are over a certain age.

Actually, you shouldn't need any of Sharon's info to answer her question. Her question is - Have you done it, and if so, were you happy with it. Not, should she do it.

Reverse mortgages are only available to seniors whose homes are paid for. They use the money whle they are alive, and the lender is paid off when they die and the house is sold. If you meet the lender's requirements, do it and enjoy your travels. It's exactly what I hope to do in my golden years.

Actually you do NOT have to own your home to get a reverse mortgage, however, any outstanding loan balance from a previous mortgage is paid out of what ever amount you mortgage for. It really is a good deal if you are old enough to hopefully not outlive it and have no one that you are interested in leaving the property to. It's a way to increase your monthly income is you want. I may do that at some future point. I'm sorry Sharon, but at this point I can't speak from personal experience and don't personally know anyoone who had done this..at least not yet.

Thanks to Jim, Kayd, Crefloors. I probably haven't made myself clear. I have equity in my home that the FP advised doing a reverse mortgage. The "money to travel" is my idea, because doing the RM would free up more money. I was just hoping to get feedback from someone who has done it. You guys are all too young, obviously. Thanks and have a wonderful weekend everyone.

Sharon, I understand you perfectly and I think it's a great idea. I'm seriously thinking about doing it myself but it's a little premature right now but getting closer all the time. Like I said before, my only fear is that in spite of myself, I'm going to live longer that I think and maybe outlive the reverse mortgage amount. As I understand it, you can take either a lump sum and invest or what ever OR take monthly payments. So, hope you enjoy yourself.

Hi Sharon, had a short talk with a couple of people, a Realtor, my accountant etc. as I have an older friend as wondered if taking a Reverse Mortgage would be a good idea for her. In her case for repairs to her house that she lives in and loves.

From what I understand Crefloors gave you the correct advice. You can take a lump sum or take a so called Line of Credit and take money as you need it. The Reverse Mortgage never has to be paid back until the homemowner dies and if I recall correctly also if the homeowners has to move into a health facility and will no longer be able to reside in the house.

I was told that there are high fees to take out a Reverse Mortgage and consequently if the homeowners truly believes they will be in the house for several more years it is worth it. Seems like if the homeowner does not expect to reside in the house longer then 5 years (or maybe it was 7 years) then it is not worth it. And of course interest is charged for the money borrowed.

I believe you have to be 62 years or older. The older you are the more money you can receive because there are life expectancy tables.

I was also told the homeowners has to go through an educational seminar (not sure if with other people or on a one to one basis).

I passed this on to my friend and she decided not to take the Reverse Mortgage (don't think she felt up to all the paperwork, the educational process etc.).

And no, you do not have to have your original mortgage paid off. But the more equity in your house of course the more money you can borrow.

As I understand the money you can borrow is based on the equity and value of the house and the age of the homeowner. And if married I believed they use the younger spouses age.

Anyway, hope this helps a little. Good wishes to you with your decision.