If my understanding of a mortgage is accurate, in that you (for lack of a better word) sell your house to the bank and buy it back, in monthly payments, then a reverse mortgage would be the bank slowly buying your house out from under you. Ive heard it described as a scam to get the old and financially illiterate people out of their homes so the bank can resale the house at a profit. I have to assume I misunderstood some part of this cuz none of that seems like it should be legal.
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While interest rates were low, and house prices were rising, reverse mortgages were great. You could theoretically get paid some amount forever, as the house value was rising faster than the intest.
Now that interest rates are higher, and house prices are more stable, it’s not such a good thing. You will lose your house and all the equity in a number of years.
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