For homeowners and families
More room in the monthly budget. Funds for improvements. A move that makes sense. Start with the goal, then get clear answers about how a reverse mortgage could help.
Yes. You keep ownership of your home. As with other mortgages, the loan places a lien on the property, and you’re responsible for meeting its terms, including paying property taxes and homeowners insurance and maintaining the home. A key requirement of a reverse mortgage is that the home remains your primary residence, where you typically spend the majority of the year.
Generally no monthly principal and interest payment is required on a HECM, but interest and charges accrue. You remain responsible for taxes, insurance, upkeep, and other obligations.
Heirs have choices when the loan becomes due, including repaying the loan and keeping the home or selling it. Specific timelines and protections depend on the loan and circumstances.
Age, property value, existing liens, interest rates, program limits, and a financial assessment can affect the amount. An individualized illustration is more useful than a headline estimate.
Closing costs, mortgage insurance for HECMs, servicing charges where applicable, and accruing interest all matter. Richard reviews them alongside alternatives.
A loan may become due when the last borrower dies, sells, or no longer occupies the home as a primary residence, or when other loan obligations are not met.
What the process looks like
The first conversation covers why you’re considering the loan, who lives in the home, any current mortgage, and how long you expect the home to serve your needs. You can include family members or trusted advisors.
The illustration compares available structures and shows how closing costs, interest, mortgage insurance when applicable, and property charges affect the plan. An estimate is a starting point, not an approval.
For a HECM, counseling with a HUD-approved agency is required. The counselor explains alternatives, obligations, costs, and the effect on the household and heirs.
Discuss who will pay property charges, how a spouse or other resident is listed on the loan, and what happens if the home is sold or the borrower moves. Heirs may keep the home by satisfying the loan or sell it and repay the balance. An eligible non-borrowing spouse may have protections, but those rules depend on eligibility and continued compliance with loan terms.
These are the questions to raise early, while everyone has time to think. Richard can walk through the loan illustration with the people you want at the table.
Start with what you’d like to change. The review can include the family members or advisors you want in the conversation.