Sketchy? You Got That Right!   Dear Mr. Livingston:  Could you
give us the true low-down on “reverse mortgages?” They are
flogged to death on TV, and seem sketchy. Thanks.   Tom M  Dear
Tom M.:  In a reverse mortgage, the homeowner promises to will
his house to a firm in return for an income stream which is paid
until death. If he wanted to do so, the homeowner could use the
reverse mortgage to consume his wealth (the value of the home)
without fear of being destitute in the event that he lives
longer than expected. But there are some things he needs to
understand.  The reverse mortgage is actually a home equity loan
to the homeowner that must be paid back. As a loan, it has loan-
related fees that must be paid. These are often high in
comparison to traditional loans. There is also the interest that
must be paid, which is also usually higher than a traditional
loan.  The homeowner is responsible for paying all taxes, fees
and insurance required on the house. The homeowner must also use
the home as the primary