In the states, the bank is lending you money and essentially building equity in your home. If your heirs pay the loan off when you die, they often may keep the

In the states, the bank is lending you money and essentially building equity in your home. If your heirs pay the loan off when you die, they often may keep the house. It's a no-lose proposition for the bank, presuming they charge a profitable interest rate. But, they are not guaranteed to get the house at the end of the deal. >Reverse mortgages allow elders to access the home equity they have built up in their homes now, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower (or the borrower’s estate) is generally not required to repay any additional loan balance in excess of the value of the home https://en.wikipedia.org/wiki/Reverse_mortgage https://en.wikipedia.org/wiki/Reverse_mortgage