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This sounds like banks trying to take advantage of older people to me. They "pay you" on a monthly basis but guess what? When you die, all the interest from those "payments" comes due in one lump sum. Add to that the fact that you are losing equity in your house every month and it becomes quite possible that the interest on your reverse mortgage will eat up a good chunk of your estate when you die.
Seems to me it would be much better to simply refinance the home and cash out the balance, then stick that money in a interest earning account and pay the new monthly payments from there. You can withdraw the surplus on a monthly basis or whatever works for you. Plus you EARN interest on the money in the bank.
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Rick
1984 911 coupe
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