A RM is simply a loan, however if you can’t pay, you lose your home.
Not true. The homeowner doesn’t make payments. It is a loan against the value of your home and your equity is gradually eroded. The idea is the loan is paid off when you sell or die. Companies don’t let you borrow anywhere near the total market value of your home. It is still your asset.
If you bought a bungalow on the Jersey Shore or in Pasadena California in the 50’s, that home is now worth millions. If you could use some cash or just want to have some fun, then a RM makes sense......in a broader financial structure. Maybe you don’t have kids or don’t want them to inherit the asset.
RM’s make a lot of sense for those folks who are real estate rich......
wrong ...
A RM is simply a loan, however if you can’t pay, you lose your home.
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Incorrect. Not true. There are no loan payments to pay on a reverse mortgage by the homeowner.