Could someone explain "Reverse Mortgages" to me

[KitchenWitch]

It seems to me, if one has one's home paid off, surrendering equity to a mortgage company without having to "pay it back" would be a ripoff in the long term.

[SoCalDem]

1. Let's say you are 80 and have a paid off home

Your SS money is $900 a month.. Why not "tap" your home for an extra $700 a month ?

Basically, you are "using" the equity in the home, since you have no desire to move.. BUT..thers' a danger.. If you take too much and/or live too long, you might end up HAVING to sell the house..

Perhaps a better way would be to have your grown kids, "buy" the house from you on the installment plan...at least that way, it's "in the family"..

At some point the bank will own your home..

[KitchenWitch]

2. That is what I thought!

Sounds like a great deal....for the banks.