| I know just a little bit about it.
It is a very simple way for a small percent of the Retired Population
to cash out on their homes. The way it is done is simple. The bank
finds out how much your "paid off" home is worth - Then they calculate
the number of years this person can potentially live (using past data
of average life of humans etc). Then they will find out what this
older person needs ($ per month) and they will start paying this
person that amount for the predetermined number of years. At the end
of those predetermined years, the bank wants to either get repaid that
sum or own the home or continue on with another payment schedule.
It is called reverse mortgage accordingly since the bank is paying you
for the home and owning it slowly instead of common debt laden folks
like most of us who pay the bank for years and years and years to come.
This is a perfect fit for the few who do not have family or who choose
to live off of their paid off home (since they worked so hard for it).
More details from Local Library - Since I am at the bottom of my pit in
details - I did not research the many "what ifs" that arise from some
open issues left out above, so I'm very little help beyond this point.
Ken
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