Top Ten Facts
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Key points to understand about reverse mortgages.
Keep these important facts in mind as you continue to learn about reverse mortgages.
1. You keep your home and continue to hold the title. You may remain in your home for as long as you wish.
2. There are no monthly payments to make to the lender.
3. When you decide to move or sell your home, or when you pass away, the loan becomes due and the balance must be paid.
4. A reverse mortgage has no income or credit requirements.
5. The youngest borrower on the title to the home must be 62 or over.
6. Single family homes, condos, and some manufactured homes may be eligible.
7. Before you receive reverse mortgage funds, your traditional mortgage balance is paid off, giving you freedom from monthly mortgage payments.
8. You are responsible for payment of taxes, insurance, and general upkeep of the home.
9. You or your heirs can never owe more than the value of the home, regardless of the loan's balance or declining home values.
10. Social Security, Medicare or Medicaid benefits, and pensions are generally not affected by a reverse mortgage. Please consult with your financial advisor for advice about your specific situation.
