Reverse Mortgages Are A Bad Idea
Reverse mortgages are basically when you sell your house to someone else and you get to live in it. Using the $300,000 home example. At today's rates (using the calculator offered NRMLA), a 70 year old couple would get a monthly payment of $986 for life or a lump sum of just $172,564.
Unless they take the monthly option and one of those 70 year old's lives for another 42 years until the ripe age of 112, then this is a rotten deal.
Think it through. Getting $172k for something you paid $500 is not a wise move.
The only way the math works out is that interest rates rise significantly and the monthly payments make sense assuming they live 20 more years.
Reverse mortgages are a bad idea!