We Are Here To Educate You!
How a reverse mortgage compares to a forward mortgage:
Similarities:
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Homeowner maintains title and ownership
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Homeowner is responsible for taxes, insurance and maintenance
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Loans are secured by notes and deeds
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Closing costs are similar for a HECM & traditional mortgage
Differences:
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No monthly mortgage payments are required with a reverse mortgage
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A HECM credit line can never be reduced; it’s guaranteed to increase over time, regardless of loan balance or home value
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Borrower can never be required to repay more than the home is worth (non-recourse loan), and pays a modest FHA insurance premium to gain these benefits
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Borrowers must be 62 in order to apply for a reverse mortgage
