4 ms·

So a reverse mortgage underwritten by an individual instead of a bank...

• dmurray 5y ago
  It's a (reverse?) mortgage combined with an annuity combined with a forward sale. Mortgaging all of your property and buying an annuity with proceeds just seems like a sensible thing for anyone who is retired and doesn't expect to leave a significant estate. I don't really get why individuals are interested in the other side of the trade, though. Real estate is an annoyingly illiquid form of investment, so it's less attractive when you don't get to actually use the property.
  • alisonkisk 5y ago
    The other side is interested in the premium they charge for their trouble.