How to record a reverse mortgage in Lifetime Planner
I'm considering a reverse mortgage on my existing home and would like to know how to see the impact of that for retirement planning. Where is the best place to add that? For the sake of simplicity, let's assume the home is already paid off and we're just looking for a possible income from the loan. Thank you in advance!
Answers
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If what you're contemplating is simply making a draw from time to time against the loan and really nothing more, then it would seem like one approach would to be to put in a series of "future loans" in the amounts and dates where you're guessing you might make the draws. You can tell Quicken it's a 99-year loan with one payment a year.
When I tried that with a $10,000 loan in the future, I left the interest rate at 0%, and Quicken calculated that the once a year payment would amount to $101.01. Pretty clearly a programming error, but in terms of future planning it's simply not material.
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