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by CareyBot

DEAR BENNY: I want to help my older parents so they can have a more stress-free and comfortable retirement, and believe I am in a position to do so. They have a home in an area where housing prices are actually still increasing, which makes the scenario even more attractive to my husband and me. Their home is valued at about $250,000. They have an interest-only mortgage with a balance of $115,000. I would like to give them a personally financed reverse mortgage of $115,000 to pay off this first mortgage. So I would give them $115,000 and set the interest rate at 6 percent. The $115,000 grows for me like a long-term, fixed-rate, compound-interest CD would grow, except I would get no payments of interest or principal until they sold the house or the house was sold because they p...