Yep. That's it. The bank loans him a little bit of money each month (or
whatever period) and adds it to the loan balance. If he lasts long enough
he will be paid the full amount of the house and the bank owns it.
Steve K;9;d;c;i


"Mike Coslo" wrote in message
...
Ryan, KC8PMX wrote:
Actually Jim, I think the things I am gonna mention are what are called
reverse mortgages.

My dad (going on 68) is contemplating taking both of his residences and
reverse mortgaging them. Apparently the bank gives him money ahead of
time
for the value of the house (a little less than market value) and upon
his
death, the property is immediately transferred to the mortgage company.
I
may be a little bit off on the explanation but it is kinda my
understanding
of how it works. I guess this way he gets the opportunity to enjoy the
money/value of the residences now, while he is still alive, as opposed
to
leaving it to my sister and I.

Trust me, that is a better solution.

- Mike KB3EIA -