When Are Reverse Mortgages Due?

If you are considering a reverse mortgage, one of the many concerns that seniors when their payments would become due. One of the main benefits of a reverse mortgage loan is that the borrower(s) is not required to make monthly payments during their lifetime.

Instead of a maturity date, the loan will be due if any of the following actions takes place:

1. Borrower(s) no longer lives in house as primary residence.

•  If the borrower(s) needs to leave the house temporarily, for reasons such as hospitalization or otherwise, they can do so up to 12 consecutive months before the lender steps in.
•  If there are multiple borrowers on the loan, the reverse mortgage will not become due until the last borrower is no longer resides in the home. For example, if a husband and wife decide to take out a reverse mortgage, and one of them passes away – the other will not have to worry about paying back the reverse mortgage loan unless they are not using the property as their primary residence.

2. Borrower(s) is no longer keeping up with taxes and home insurance.

•  As with other loans, the borrower(s) is still responsible to keeping up with payments with taxes and home insurance.

3. Borrower(s) is no longer keeping up regular maintenance of the home.

• Borrowers must continue to keep up with regular maintenance of the home, which is a requirement for other forward loans as well. The borrower(s) can set aside some of their reverse mortgage proceeds to help pay for any major or minor home repairs. It is also for safety reasons that borrowers must continue to maintain the upkeep of their property.

For more information about how you can benefit from a reverse mortgage, speak with an advisor at 1-888-808-8486.

About the Author:

I have been working in the reverse mortgage industry for 20-plus years. My goal is to provide consumers the most up-to-date and relevant information about the reverse mortgage industry and how it can affect them.

Thanks so much for reading!

-Alan F.

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