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Norma Said:

How do reverse mortgages work, in simple terms?

We Answered:

My peers are partly correct.

a Reverse mortgage is exactly what it sounds like; instead of the
borrower making monthly payments to the lender after getting
a lump sum payment......the lender lends the borrower a fixed monthly payment. NO payment is due to the lender till the
end of the mortgage when either.......
the borrower has died and the estate does not want the house
so the lender forecloses.

or..........the insurance if there is any, pays back the
lender and the house is debt free to the estate.

or, if the borrower lives long enough, at the end of the
mortgage life [loan], he needs to re-finance
the home so that the lender is paid back.

Ross Said:

How do reverse Mortgages work?

We Answered:

Here's an excellent article that explains it all :

http://financialbasics.blogspot.com/2006…

Peggy Said:

how do reverse mortgages work?

We Answered:

Basically, the Bank will own the property and you will be allowed to occupy the premises for life. During your lifetime, the Bank will actually pay you a monthly payment. In order to qualify, there must be adequate equity in the house to make it profitable for the Bank.

Phillip Said:

How do reverse mortgages work?

We Answered:

Hello John,
There is nothing better than going right to the source for information. Over 90% of reverse mortgages are known as Home Equity Conversion Mortgage (HECM) which are insured and regulated by the Federal Govt. The address below will take you right to the HUD website concerning reverse mortgages.

http://www.hud.gov/offices/hsg/sfh/hecm/…

Troy Said:

How does reverse mortgages work?

We Answered:

You getted ripped off paying ridiculous closing costs, then get a payment and get to stay in your house until you die or the time elapses on your contract, then the mortgage company owns it.
A better idea is to sell your house, invest the money and move into an apartment.

Nathan Said:

How do reverse mortgages work, and are they a safe method to get equity out of my house?

We Answered:

A reverse mortgage is a really great thing if you have lots of equity in your home, and you don't have very much liquidated cash to enjoy your retirement.

Anyways, you can find some info and resources about reverse mortgages here:

http://reversemortgageresource.blogspot.…


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