Sentences with phrase «on a reverse mortgage compounds»

But keep in mind that the interest on a reverse mortgage compounds, just like the interest on a strip bond.

Not exact matches

We still owe mortgage payments on our home to the tune of $ 13,500 a year, but by getting a reverse mortgage that $ 13.5 k will go away, and we'll have a $ 105,000 credit line making a bit over 5 % interest per year (which we don't need at this time, so it will accumulate at compound interest).

Reverse Mortgages have compounding interest on the loan balance in either a fixed rate loan or variable interest rate loan.