Frequently Asked Questions

Section 11. Frequently Asked Questions

Can My Reverse Mortgage Lender Take My Home If I Outlive My Loan?

No! As long as you live in your home, your reverse mortgage lender cannot foreclose. Remember that your loan is not repaid in monthly payments. Rather, your reverse mortgage is repaid when you sell your home, you move away, or upon your death.

Can I Still Leave My House To My Heirs?

Yes! Your home is still your home. Reverse mortgages are loans that use your home as collateral so that if the loan is not repaid, your home can be sold to pay off the loan. If, at the time of your death, the payoff of your reverse mortgage loan is less than the value of your home and your home is sold, the difference between the payoff amount and proceeds from the sale will be given to your heirs. On the other hand, if the payoff is greater than or the same amount as the value of your home, and your home is sold, there will be no difference and your heirs will not receive any money. Of course, since a reverse mortgage is a loan, your heirs can payoff the loan and keep your home.

Can I Pay Off My Reverse Mortgage And Cancel It At Any Time?

Yes! You can pay off a reverse mortgage loan at any time just like any other mortgage loan. When you pay it off, the reverse mortgage will be canceled.

Do I Still Have To Pay The Property Taxes And Homeowner's Insurance?

Yes! It is still your responsibility to pay the taxes and insurance. With some reverse mortgage loans, you can have your lender pay the taxes and insurance and charge them to your loan. If you do this, then the amount that you will receive will be reduced by the amount that your lender paid on your behalf for taxes and insurance.

What Types Of Homes Are Eligible For Reverse Mortgages?

Basically, single family homes, two-to-four unit dwellings, townhouses, condominiums and some manufactured homes are eligible as long as you own the property and use it as your home.

This ebook is for general information only and may or may not be applicable to your situation. If you have any questions whatsoever, talk with a mortgage broker or lawyer licensed in your state.

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