Well, of course; that's the interest. With a standard mortgage you
pay much more than you borrowed also. The big difference is that with
a standard mortgage you get a lump sum up front and then pay it back
bit by bit over time; with a reverse mortgage you get the money bit by
bit over time and then pay it back in a lump sum at the end.
There are other differences, of course, like whether you can continue
to get payments (i.e. borrow more money) during your lifetime even if
it ends up with negative equity, whether that negative equity has to
be paid in addition on sale, what the payback terms are, etc.
It's important to analyze the money flow to determine the interest
rate and fee structure; yes, many scammers sell reverse mortgages that
are very very costly in the end.
Its unlikely any bank would make a mortgage of any size to an (UNEMPLOYED)
81 year old in poor health.
She would have to show enough income to make the LARGE monthly payments on
the amount you suggest.
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