As an example, you must live in the home and if you choose to vacate the home for 12 months then the loan is due and payable meaning you need to sell the home and pay the bank the balance due on the loan. Any proceeds over the sales price less what you owe the bank /closing costs that would be kept by you or your heirs depending on who sells the property etc... The other consideration a senior must understand is the aspect of compounding interest. As the loan balance grows,as an example: if you start with a $100,000 balance on your loan and after one year you owe $105,000 the interest for the next starts with the $105,000 therefore your loan balance might grow faster than you expected. Now, to offset that you could have appreciation on your home. Nobody knows the future of interest rates or home appreciation but consider this simple example. Remember, this is only and example so you can follow the numbers with ease.
