let's just look at what everybody knows, well maybe everybody knows, or hopefully everybody know, or maybe somebody knows.
a Reverse Mortgage does not require the buyer (purchase) or the homeowner (refi) to make a monthly payment!
So let's say the required principle and interest payment is $1,000 a month currently, and the senior acquires a reverse mortgage. the required payment is now...
$0.00
simple math; that's $12,000 per year, $60,000 every five years, and $120,000 every 10 years
the obvious is that that will change the seniors financial position immediately. so what to do with the $$$$
it's their choice; investment, add to the retirement nest egg, improved live style (yes they should be enjoying their retirement/senior years), protection against tramatic life events, home health care; the list goes on, and on, and on.
so, here's a personal example; i didn't plan on having a second heart attack, but i did anyway. that's the way it works. just because you don't plan on something happening doesn't prevent it from happening. i was/am on 100% commission, and that came to an abrupt end. i did have a mortgage payment, and that didn't (come to an abrupt end.) My expenses actually increased as my income decreased, and vanished.
it would have been nice not to have had to make a payment.
