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Reverse Mortgage Loans and Payment Term

A typical closing package has about 150 pages of documents, roughly one-third of which require borrower signatures. The loan is not due and payable until the borrower no longer occupies the home as a principal residence. The 10/1 ARM has an initial interest rate that is fixed for the first ten years of the loan.

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There are no monthly mortgage payments but you will be responsible for property maintenance, property taxes, and property insurance (this would be the case even if the home was paid off). With a HECM laon, servicing includes sending statements about the balance of the mortgage, making sure you are paid the proceeds of the loan, and checking to see that you are meeting tax and insurance requirements. If a disabled son or daughter is living at home, and the parents get a reverse mortgage, that son or daughter may have to look for alternative housing options once the loan becomes due and payable, unless other arrangements are made ahead of time to pay off the reverse mortgage. Helping borrowers pay off existing liens, mortgages or other debts.

Borrowers are assured that, as long as they meet their loan requirements, they will be able to age in their own home. The monthly servicing fee covers costs which are associated with administering the reverse mortgage loan. Some surviving spouses didn’t understand this clause while others were unaware of the impact that it would have on their lives. The earliest you can receive benefits is at age 62. However, your benefits will be greatly reduced than if you took them later. MetLife has a different take: The steep recession pressed especially hard on early retirees and others past midlife who might have lost their jobs and are motoring through their savings.

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