Why would banks offer such a program?
Banks offer reverse mortgages to help supplement the fixed income senior citizens receive from social security, pension or any other source of income. The lender makes the loan based on your age, the amount of equity in the home, your location, interest rates, and the type of reverse mortgage you can qualify for. The money is owed with interest when the last borrower is either deceased, permanently moves out of the house, or sells the house. It is quite often the proceeds from the sale of the house will satisfy the loan balance.
