Does anyone know anything about reverse mortgages?

[honeylady]

11. My mother had a reverse mortgage

It worked out quite well and its not a scam. She wanted me to have the use of her money before she died. She took out a reverse mortgage. We only paid interest on the money we actually took. We had a cap of $350,000, which we did not use - only about $150,000. I used it to make some major changes to my property, which has enabled us as retired people, to get a nice little sum for a rental we built. The only negative was the $17,000 in points. But the interest rate was very low - 2%.

When she passed away I refinanced her house and paid it off. It is now being rented for a nice profit every month.

It paid off her mortgage, which helped her a lot towards the end. She never had to pay a penny out of pocket.

I could see how it could be a problem to the heirs if they are saddled with a large mortgage to cover the money their parents went through. But frankly, its their right to spend their money anyway they want.

Great experience!!