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How Does a Reverse Mortgage Loan Work?

How Does a Reverse Mortgage Work

A reverse mortgage is a loan that allows seniors (age 62 and above) to borrow a portion of their home equity without having to make a monthly mortgage payment.  Obviously, in order for the lender to allow seniors to borrow a portion of their equity, the senior must first have equity to borrow. 

Although the lender will not require a monthly mortgage payment, the homeowner still has obligations he or she must meet in order to keep their reverse mortgage loan in good standing.  Those obligations are listed below:

  • Homeowner must continue to live in the home as his/her primary residence
  • Homeowner must maintain the home
  • Homeowner must continue to pay his or her property taxes, homeowner's insurance and other property charges (HOA dues, etc.)

The reverse mortgage loan becomes due when the last surviving borrower dies (or no longer resides in the home), the home is sold, or one of the above obligations has not been met.

If you have questions about this, please call us!  855-469-7383, Ext. 802

Be sure to sign up for our free reverse mortgage loan guide to learn all of the facts.

About the Author Laura Funderburk

Laura Funderburk is a highly sought after reverse mortgage loan specialist in Dallas, Texas. She has focused on this specialty loan for many years and stays up-to-date on the latest trends and changes. She is known for helping retirees supplement their retirement income using a reverse mortgage loan without being pushy or overbearing.

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