How Reverse Mortgage Repayments Work

Like any other type of loan, a reverse mortgage must eventually be repaid.

The good news? 

As long as you fulfill your obligations as the homeowner, you don’t have to pay the loan until after you’re no longer living in the home. 

At that point, you (or your heirs) will have to repay the reverse mortgage, including any accrued interest and fees. However, as the borrower, you will never have to pay any amount over and above what your home is worth.

Rated 4.8/5 by 674 homeowners just like you
5/5
4 July, 2019
5/5

Jae Powell

“Brian assisted me with account registration and other tasks. Before I contacted this company, I felt overwhelmed. But over the phone, I realized I was dealing with an expert. Two words: patience and professionalism! Thanks.”

GEORGE

"When does the loan have to be repaid?"

— GEORGE

While you have a reverse mortgage, you don’t have to make any monthly mortgage payments. The loan repayment process doesn’t have to begin until one of the following 4 events occur:

  • All borrowers permanently move out of the home.
  • The last surviving borrower passes away, sells the home, or doesn’t live in the home for 12 consecutive months.
  • The borrowers fail to pay property taxes or insurance.
  • The borrowers let the property deteriorate beyond what is considered reasonable wear and tear, and did not correct the problems.

You can decide how the loan balance—including any fees and accrued interest—is repaid. Many homeowners (or their heirs) choose to sell the house and use the proceeds to repay. Another option is to repay the reverse mortgage through a conventional forward mortgage.

With a reverse mortgage, you own the home—not the lender. So you can choose to sell it at any time. In that case, the reverse mortgage loan would become due, and would be repaid from the proceeds of the sale. If what you receive for the sale of the home exceeds what you owe for the reverse mortgage, you keep the difference.

"But what if I owe more than it’s worth?"

— GEORGE

GEORGE

Don’t worry, that can’t happen

Because a reverse mortgage is a “non-recourse” loan, you’ll never owe the lender more than the home is worth at the time of its sale. 

The fees on your reverse mortgage include a payment for insurance that ensures you’ll never owe more than your home’s fair market value.

Whichever names are listed on your home’s deed (for example, you and a spouse) will also be listed as co-borrowers on your reverse mortgage. Please note that if a co-borrower passes away, this does not force repayment of the loan. The surviving borrower can continue to own and live in the home—and enjoy all of the benefits of the reverse mortgage.

Here’s what people like you are saying about us.

"When I began working with Brian, I had an idea in mind about what I wanted to do regarding consolidating debt to reduce interest rates and allow for more cash flow. In the spirit of exceptional service, Brian didn’t simply respond to and process my wishes, but shared with me several different options which would help me achieve my goals more effectively, unlike other financial institutions that merely returned a solution which was not really in my best interest. Once the final solution was determined, Brian and team continued to work hard for and with me to get the best rate and deal possible by counseling me on how to increase my credit score in short order and then by interacting with the agencies on my behalf to update their records just in time."
Geoff and Debbie S.
"Brian always made me feel at ease, was easy to communicate with and by the end of my first purchase with Brian I knew for a fact he had my best interest at heart. I have since done three transactions with him and I know he always fights to get me the best deal and protects my interests at all costs. "
Frank & Debbie V.
"Purchasing or refinancing a home is such a personal and often stressful experience, things seem to come down to the last 31 days and when the process greatly affects you and your family, emotions can run high. In the age of online offers and refinancing with a click of the button I have been burned before. In Brian I have an individual on my financial team that I can trust completely and that is priceless."
Denise G.
"I was lucky in that Brian was a good friend of the family when we took on the process of purchasing a family home. Then I found out that I was even more lucky than I knew. Brian and his team will take care of you like their own family as they guide you through the process to closure."
Jacqueline T.
"If you’re looking for company and person that will make you feel like family, look no further than Brian and his staff. Professionalism, dedication and a personal touch. You can’t ask for more."
Jonathan Q.

Crown Reverse Mortgage: Helping You Live The Retirement Of Your Dreams

4.8
5/5
Based on 674 reviews