[HighWheeler]

1) Say you have a $100K house, and your remaining mortgage is $40K to pay it off. So the amount of cash you can get out of your house is $60K

2) An investor offers to buy your house for $100K and you accept.

3) The investor lets you live in it for $700 per month per your contract with the investor. At that rate, you will dry up your house’s 60K equity in about 7 years.

4) You can keep all the money you would have spent each month for your mortgage.

However:

- The investor enjoys the time-value appreciation of your house over the 7 years.

- The investor will take your $700 per month to help pay off his bank mortage on your former house (his new house).

[knarf]

That's about how I was thinking ... and hsrazorback1 and MediaMole ... I don't intend to, I was just curious and hoping to get an Engrisht translation.

/8^)

Thanx

[Joan Kerrey]

Watch out for
1. terribly high closing costs (often a rip off)
2. you can not get 100% of equity. Example: if you have a $100,000 house, paid off, you might get $60,000 reverse mortgage. If you still owe $40K, you’d get only $20K on a reverse mortgage over the amount owed on an existing mortgage.
3. When you die the lien (reverse mortgage) must be paid off by your heirs or it goes to the lender.