Will the lender take my house?
No, this is a misconception; a reverse mortgage is a loan against the property. The title remains in the name of the borrower(s) and the lender is only repaid the loan balance or home value, whichever is less.
Will I ever owe more than my home is worth?
No. All reverse mortgages are "non-recourse" loans, meaning the borrower can never owe more than the value of the home regardless of loan balance.
Can I get a reverse mortgage if there is already a mortgage on my home?
Yes, but any existing mortgages must be paid off at closing. The proceeds from the reverse mortgage may be used for that purpose.
Do I or my heirs have to sell the property to repay the loan?
No. Repayment can be accomplished by a refinancing of the existing reverse mortgage with a conventional mortgage loan.
When does the loan become due and payable?
The loan is due and payable when the last remaining borrower sells the property, permanently leaves the home, or passes away. Until these events take place you live in the home and make no payments to the lender.
If there are no payments, what are my responsibilities?
You are required to pay your property taxes, keep the property insurance current, maintain the home, and notify the lender if you will be away from the property for an extended period of time
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