What Is A Reverse Mortgage?
How does a Reverse Mortgage work?
A reverse mortgage loan requires no repayment for as long as you live in your home. It must be repaid in full, including all interest and other charges, when the last living borrower dies, sells the home, or permanently moves away. Because you make no monthly payments, the amount you owe grows over time. As your debt grows, the amount of cash you would have left after selling and paying off the loan (your "equity") generally decreases. But you cannot owe more than your home's value at the time the loan is repaid. Because as a reverse mortgage borrower you continue to own your home, you are still responsible for property taxes, insurance, and repairs. If you fail to carry out these responsibilities, your loan could become due and payable in full.
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