What about repaying a Reverse Mortgage Loan?

The very nature of a Reverse Mortgage may be confusing.  With a Reverse Mortgage, the lender will pay you either in monthly installments, with one lump sum, a line of credit or as a combination of a line of credit and monthly installments. These lists provide information regarding repayment of a Reverse Mortgage.

A Reverse Mortgage comes due under the following conditions:

• Death of the homeowner or last surviving eligible non-borrowing spouse
• Upon sale of the home by the homeowner
• If the homeowner lives elsewhere for 12 consecutive months (i.e. assisted living home)
• Upon an instance of default.

When the Reverse Mortgage loan becomes due, there are two options for paying it off:

1. Proceeds from the sale of the home
2. The homeowner or heirs of the homeowner can refinance the loan with a new mortgage

Like all loans, a Reverse Mortgage loan does carry conditions in order to remain valid. Reasons a borrower may find themselves in default include:

• Failure to pay property taxes
• Failure to keep the home in good repair
• Failure to insure the home
• Taking of new debt on the home
• Bankruptcy
• Abandonment or donation of the home
• Eminent Domain

What are some important questions to consider with a Reverse Mortgage?  Click the following link for our next topic: 3 Reverse Mortgage Loan Questions To Consider. 

Online Reverse Mortgage 'calculator tools' can be misleading or completely inaccurate, our Reverse Mortgage QuickQuote is a great place to begin. With no credit inquiry and no obligation, you'll receive the most recent rates and tables illustrated to properly calculate all available options for you. What makes our Reverse Mortgage Planners a better choice for you?  Click here to learn more