Q. Can I still make monthly payments on the loan if I want to? A. Yes, you may. There is no prepayment penalty.
Q. When will I have to pay the principal and interests cost of this loan? A. Your REVERSE MORTGAGE loan becomes due and must be paid in full when one or more of the following conditions occurs: (a) the last surviving borrower passes away or sells the home; (b) all borrowers permanently move out of the home; (c) the last surviving borrower fails to live in the home for 12 consecutive months due to physical or mental illness; (d) you fail to pay property taxes or insurance; (e) you let the property deteriorate, beyond what is considered reasonable wear and tear, and do not correct the problems. You usually have up to 1 year to either settle the mortgage in any way you or your heirs prefer.
Q. What has to be repaid when the loan becomes due? A. The mortgage principal (you amount that you have taken or used), the initial closing costs, and the interest, insurance charges, and service fees for the length of time that you kept the mortgage. This is usually paid from the proceeds when the home is sold, but may also be paid by refinancing or any other means you or your heirs decide.
Be sure to speak with our highly trained HomeSafe advisors for advice on using your REVERSE MORTGAGE programs.