It’s not a loan. The bank buys back the equity you own in your house and you are free to do with that money whatever you want. For some seniors, especially those who have no need to pass on their property to an heir, it can give them cash for living expenses they otherwise would have to take from accumulated savings.
It’s not a loan. The bank buys back the equity you own in your house and you are free to do with that money whatever you want. For some seniors, especially those who have no need to pass on their property to an heir, it can give them cash for living expenses they otherwise would have to take from accumulated savings.
There is no problem with the Reverse Mortgage on its own....the problem is that Thompson, who was supposed to be a “conservative”, is pushing “Governemnt Backed” R-M’s....Government Backed real estate deals are a big reason why our economy tanked. Thompson is doing nothing more than endorsing Business Socialism
However, Reverse Mortgages cannot be done on homes “underwater”....and many elderly in southern states are very underwater on the homes. Most Florida elderly folks cannot do R-Ms because they are so underwater
Ok, so they are slowly taking over your home each time you request some money.
This may not be so bad in a robust economy, but I’ve lost about 200,000 in equity over the past 2 years alone without borrowing a dime, and I’m sure it’s the same all over if not worse. The American dream is turning into a nightmare.
When your equity doesn’t grow, then I don’t think this is a good idea, and I guess Thompson needs to pay off campaign debts.
You are dead wrong....all Reverse Mortgages are loans...the bank owns nothing. The homeowners have title to the property...They are no different than a conventional mortgage....you can pay them off anytime you choose.
Get your facts straight before you mis inform fellow FREEPERS... I have originated 100's of RM's and know what I'm talking about