REVERSE MORTGAGE the Good-Bad-Ugly

my Mom wanted to get one. she gave me the paperwork to read over. I was shocked it was even legal...

essentially you sell your house to the company. they take possession when you die, and pay you a little bit of the sale price monthly, which is akin to winning a lottery and taking an annual stipend instead of a lump sum. the state keeps the cash, and all the interest it makes over time, and you never actually get the principle.

to make it easy, if I give you $1 million, but only pay out $100k annually until you die, then you never actually got the million, you only got a portion of the interest. if I make 12%, you only get 10%. I keep the 2% AND the original $1million....pretty good deal for one of the two parties, you can guess which one comes out ahead...same with a reverse mortgage. if there wasn't HUGE profit and low risk for the lender, they wouldn't be pushing them so hard on infomercials...

Let's block ads! (Why?)

REVERSE MORTGAGE the Good-Bad-Ugly