reverse mortgage basics
How Are Reverse Mortgages Repaid?
How are reverse mortgage loan balances usually repaid?
- The loan is repaid through proceeds from the sale of your home.
- At the end of each year, you must pay back a certain portion of the amount you’ve received.
- You or your heirs make small monthly payments until the balance of the loan is repaid.
“A” is correct. Repayment on a reverse mortgage generally doesn’t fall due until you and the other owners of your home stop living there. Once you and any co-owners die or move away, the home may be sold, and the proceeds from its sale can be used to repay the loan balance, including all cash advances, interest, and other fees or charges.