It is always a good idea before entering into any financial arrangement to understand what benefit the person on the other side of the deal is getting to fully understand whether the deal is equitable to both parties.
So today I'm trying to understand exactly what the upside of offering reverse mortgages is to the lender. It seems to me that if they are just looking for appreciation of value in the property they would just go buy real estate instead of doing this type of exotic loan. Is this just a form annuity where you pay at the end instead of at the start, where they are hoping you die quickly after taking it out? Is it all about the up-front loan fees to initiate them? Maybe something else?
