Reverse Mortgage Facts

Get the straight facts about reverse mortgages.

  • A reverse mortgage is a lien against the property. You still retain ownership of your home. (Borrowers are responsible for paying property taxes, homeowners insurance, maintenance, and related taxes. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise the loan becomes due and payable. The loan also becomes due and payable when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes or insurance payments or does not otherwise comply with the loan terms.)
  • Reverse mortgage loans are repaid by the sale or refinancing of the home.
  • A reverse mortgage is a non-recourse loan, which means that you or your estate will never owe more than the appraised value of the home at the time the loan is due.
  • A reverse mortgage can be used to pay off your existing mortgage at close.
  • No one can force you from your home. The reverse mortgage is not due until your home is no longer your primary residence.
  • Qualifying for a reverse mortgage is based on income, assets, monthly expenses and credit history of all reverse mortgage borrowers (much like they do for other types of home equity loans). The financial assessment process is designed to make sure that the applicant can continue to afford property taxes and insurance on their property for the rest of their lives.
  • Reverse mortgages can be used to purchase a new primary residence. It’s called the “Reverse Mortgage for Purchase” program.

 

These are general reverse mortgage facts. To understand how a reverse mortgage can benefit you personally, request a quote from David Chee or contact him for further information.

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