We Are Here To Educate You!

How a reverse mortgage compares to a forward mortgage:

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Similarities:

• Homeowner maintains title and ownership

• Homeowner is responsible for taxes, insurance and maintenance

• Loans are secured by notes and deeds

• Closing costs are similar for a HECM & traditional mortgage

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Differences:

• No monthly mortgage payments are required with a reverse mortgage

• A HECM credit line can never be reduced; it’s guaranteed to increase over time, regardless of loan balance or home value

• 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

• Borrowers must be 62 in order to apply for a reverse mortgage