This is a complete misrepresentation. I am a mobile notary in the villages and I do reverse mortgage applications and closings. I am independent and not affiliated with any reverse mortgage company. The interest rate charged is the same as any bank is charging right now to do a refinance or a home equity loan. The main benefit the people I have worked with see to the reverse mortgages is that their current mortgage is paid off and then they have a pool of money they can draw from if they choose. The reverse mortgages don’t lend over 75% of the value of the home. Some people use the extra money and some don’t. You can sell the house anytime you wish and all you do is pay back what you borrowed with the interest rate you agreed to, same as any other loan. No different than if you had refinanced your home or gotten a home equity loan. The leftover goes to your family and as your house continues to go up in value your heirs will get even more if you decide to pay back what you owe when you pass. The only negative I see to this or any other loan is when you refinance or do one of these you add to your principal amount because of the closing costs. These have been a lifesaver for some people. Also most peoples children are not waiting around for them to die so they can get money from the home. Most would want their parents to live a better life now rather than struggle financially.
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