I haven’t verified your math, but that is the basic idea. I believe, like with any mortgage, that she also has to agree to keep the house in good repair.So, the basic idea is granny is 75 and short on cash but living in a paid off house worth $500,000. She has insufficient savings or income to justify a heloc. She gets a (reverse) mortgage of $200,000 at a sort of terrible interest rate and $10K in fees (or something like that). She uses the money to live as long as she can and hopes it doesn't run out. When she moves or dies the house is sold and the $200,000 is repaid plus the high interest. If she dies at 85, the bank claims about $375,000 of her equity at current RM rates.
Statistics: Posted by delamer — Sat Jan 10, 2026 9:25 am — Replies 38 — Views 8309