(muttered faintly under one's breath)
Once they have the reverse mortgage, it doesn't matter at all what the housing market does. Basically, a bank (or other entity) decides how long they'll have to wait to get the house (until the owners die) and how much it will be worth then. They then pay the owners the current value of that amount. That is, if the owners will likely live 10 years and the house will be worth $1m at that time, then the owners would get something like $500k (the amount you would need to invest to have $1m in 10 years.) A good idea, in some few cases, I suppose.
Post a Comment