This is the second question in our FAQ blog series on Reverse Mortgages. The following question is important for those seeking a Reverse Mortgage to ask and make sure they understand all of the stipulations to what they are signing up for.
“When is the Reverse Mortgage loan due?”
Great question! So glad you asked.
After closing, you’ll have no monthly payment whatsoever.
The loan is due if 3 things happen:
- The house in question is no longer the primary residence
- Both borrower’s have passed away (the heirs have 6 months to sell the home— extensions are given)
- Both borrower’s move in to a nursing home and can no longer live in the house (must sell home)
A Reverse Mortgage is much like a home equity loan. If both borrower’s pass away, the title company pays off the loan and any remaining proceeds go to the heirs.
If there is a question you may have that I don’t answer, feel free to email me at email@example.com or call be at 615-970-2216. I’d be happy to sit down and discuss any questions or concerns.