Financial Backup Plan.com
Your Reverse Mortgage Resource
What is owed when a reverse mortgage is paid?
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The principle the was used until the last borrower perminently leaves the home or dies
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The interest that accrued during the same term
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The closing costs inccured at the time of closing
THIS IS A NON-RECOURSE LOAN AND YOU OR YOUR HEIRS
WILL NEVER OWE MORE THAN THE HOME IS WORTH
How is the loan amount determined?
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The age of the youngest borrower ( the older you are, more of the equity will be available)
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The appraised value of your home at the time of the application
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Current interest rates (most programs are adjustable rate)
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The program you select (adjustable or fixed rate product)
What are allowable property types?
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Single family homes
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Two-four unit buildings (one must be owner occupied)
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Condominiums (must be FHA approved communities)
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Manufactured homes (located on your own property)
All Reverse Mortgage loans are on owner occupied primary residences
When is the loan repaid?
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When the last borrower passes away or is no longer able to remain in the home
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When the home is no longer the borrower's primary residence
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When the home is sold or the borrower transfers the title to someone else
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When taxes and insurance on the property are not maintained as agreed
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If the property falls into disrepair without corrective action by the borrower
Who owns the home? As a conventional mortgage, you own the home and you pledge the home as collateral. Even if, in the future the loan exceeds the value of your home, the reverse mortgage continues - thanks to the federal insurance. The line of credit will still be available and any monthly disbursements you may have set up will continue.