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.

FAQ #2

“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:

  1. The house in question is no longer the primary residence
  2. Both borrower’s have passed away (the heirs have 6 months to sell the home— extensions are given)
  3. 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 kgrodi@klgmcm.com or call be at 615-970-2216. I’d be happy to sit down and discuss any questions or concerns.