Thanks for your note.

As the original posting says, “as always with any reverse mortgage product, speak with an attorney who specializes in elder law for specific advice.”

In the case of a loss it sure doesn’t sound like the people at Rex are getting 3.5 percent for every 1 percent they put in.

As to the term “king,” it’s a play on words. The name “Rex” means “king” in Latin. See: http://www.thinkbabynames.com/meaning/1/Rex.

As always in these situations, the blog is a commentary and not an endorsement — thus the note to see a specialist in elder law.

Rex will loan a maximum of 15% of FMV. They charge a $15,000 service fee at time of sale. They get an equity share of 3.5% for every 1% they loan you. No interest accrues, but if you get the maximum of 15%, this can mean up to 52% of your equity over time (15 X 3.5).

In California, this can be a whopper. Correct me if I am wrong, but if a 15% loan ($25,000) is taken out on a $169,000 home today, and that home sells for $750,000 10 years later, you will owe about $342,000 to Rex ($25,000 original loan + $15,000 service charge + $302,000 for 52% shared equity).

While it may serve its purpose for some cases, I would not call it King of anything, let alone of reverse mortgages.