Does the lender take title to my property?

No, you retain the same ownership and title that you have today. The lender puts a lien on the property (just as they would with a forward mortgage) and the balance, if any, is paid off when you or your Heirs sell your property, or you/they pay off the loan with another loan or other funds.

Can the lender or government ever take my home away?

Not if you continue to honor your property obligations: pay your property taxes, homeowner’s insurance, association dues (if applicable) and maintain the property. You can remain in your home for the rest of your life!

When does a Reverse Mortgage need to be paid off?

When you sell the property or no longer occupy the property as your primary residence for a period of 12 months or longer. If your Heirs inherit the property while the loan is still in place, they will have a grace period from 3 to 12 months (depending on extensions) without a payment obligation to decide how they would like to handle the change of ownership. During the grace period, your Heirs can decide to sell the home and keep the profit or payoff any loan balance with other funds such as refinancing with a new loan of their own.

I currently hold title in a Trust, can I keep it that way?

Yes, but the lender and title company do require that they review the Trust and it must be approved. If you hold title in a Trust, so there are no surprises later, you should let your Federally Licensed Provider know up front, so they can get a copy of the Trust and have it reviewed. Most Trusts are prepared with lender requirements in mind, but it’s best to know as early as possible.

Will my Heirs still receive an inheritance?

After the HECM loan is paid off, all the remaining equity will go to your Heirs. One of the forms we provide before you close is an amortization schedule, so you will have a good estimate of the principal balance of your loan, year-by-year. How much equity will remain depends on variables such as how much money you draw, how long you stay in your home, home appreciation, and interest rates.

Can I make a payment whenever I want?

Yes, it is completely your choice of whether to make a payment and when. As you get older your needs may change; you can make a payment one month and then choose not to make a payment the next month, you can make interest only payments, or you may decide to never make another mortgage payment for as long as you live.

Do I still receive the benefit of appreciation?

Yes, this is probably one of the most important aspects of the loan: just as you always have, you remain the only one on your title and you can continue to benefit from your home’s appreciation year-after-year.