Is there a reverse mortgage company out there that will pay interest on my money they hold for me?

2 answers | Last updated: Nov 16, 2016
Artranta asked...

Is there a reverse mortgage company out there that will pay interest on my money they hold for me?



Community Answers

Mark schmidt answered...

All FHA insured reverse mortgages increase the availability on any money placed in a line of credit with the lender.  Technically, this is not interest in the traditional sense but it works in much the same way.  For example, if you had $50,000 in reverse mortgage proceeds in a line of credit (that you could tap on an "as needed, when needed" basis), after a year, you might have $52,000 available.  A year after that, $54,000 available.  And so on.  This gives the borrower some credit for the presumed appreciation of the home over time.  Not a bad deal in today's market when many homes are actually going down in value.  If you would like to talk about it in more detail, I can be reached at 1-800-343-6471.


Rainmand answered...

No. They enable you to convert your equity into cash, but they don't hold any of your money.