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How does a reverse mortgage work?

(September 25, 2009 | Comments: 4)


How does a reverse mortgage work?

A Reverse Mortgage  works just like a regular mortgage in the sense that there is an interest rate. The difference is that the bank allows you to defer the interest on the loan until you pass away. If you elect for the line of credit option, you actually only pay  interest on the money that you draw out of the line of credit. The money that you keep in your line of credit actually grows at 4.0% interest.  You will remain on the title to the home at all times. When you pass away, you have multiple options available to pay off the mortgage.  You could have your estate sell the home, you could have life insurance pay off the balance or if you don’t want to fool with it, you could simply give the home back to the bank.

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4 Trackbacks

  1. By Антон Павлович on March 24, 2010 at 3:53 pm

    Ну, а что дальше?…

    If you elect for the line of credit option, you actually only pay  […….

  2. By Kylie Batt on April 12, 2010 at 5:28 am

    мне не надо такого добра!…

    Web дизайнер

    How does a reverse mortgage work?
    A Reverse Mortgage  works just like a regular mortgage in the sense that there is an interest rate…..

  3. By Kylie Batt on April 21, 2010 at 7:46 pm

    Я конечно, прошу прощения, но это совсем другое, а не то, что мне нужно….

    Менеджер по туризму If you elect for the line of credit option, you actually only pay  […….

  4. By Kylie Batt on May 19, 2010 at 10:27 pm

    Это – глупость!…

    Врач уролог If you elect for the line of credit option, you actually only pay  […….

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