Reverse mortgage questions answered
Find the answer to your question, then follow the guide for more detail.
These answers cover the Home Equity Conversion Mortgage (HECM), the federally insured reverse mortgage. Private loans can have different terms.
The sources below come from the Consumer Financial Protection Bureau (CFPB). Other sources come from the U.S. Department of Housing and Urban Development (HUD).
Do I still own my home?
Yes. Your name stays on the title. You borrow against the home, as with a traditional mortgage. You still have to meet the loan's requirements.
Source: CFPB on ownership
What do I still have to pay and maintain?
You must keep meeting the loan's requirements:
- Pay property taxes and required insurance.
- Keep the home in good repair.
- Use the home as your principal residence, where you live most of the year.
Falling behind on these responsibilities can lead to foreclosure.
What does the loan cost?
A HECM has upfront costs and ongoing charges. These can include closing fees, mortgage insurance and interest. A fee paid from the loan becomes part of what you owe. The balance grows as interest and fees are added.
Reverse mortgage costs and fees
Source: CFPB on reverse mortgage costs
Where can I find a HUD-approved counselor?
HUD lists reverse mortgage counselors through its HECM counselor resources. Counseling is required before you receive a HECM loan. Compare the costs, responsibilities and alternatives before deciding. Use HUD's search to find an approved counselor.
Sources: HUD's HECM program and counselor resources and CFPB on counseling
Can my heirs keep or sell the home?
Heirs may be able to keep the home by repaying the loan, or sell it to repay the debt. Who is on the loan and who remains in the home matter.
A surviving borrower or eligible non-borrowing spouse can affect when repayment is due. A non-borrowing spouse is a spouse who is not a borrower on the loan.
If a repayment notice has arrived, contact the loan servicer promptly about the options and deadlines. Seek qualified legal help for the estate's situation.
What families and heirs need to know
Source: CFPB on heirs' options
What if I have a default or foreclosure notice?
Contact your loan servicer promptly. Ask why the notice was sent and what you need to do. If you cannot pay required charges, seek help from a reverse mortgage housing counselor or attorney.
Use the notice's deadlines. Do not wait for a general educational meeting.
Keep learning at your own pace
Start with the plain-English reverse mortgage guide for the full picture. If you are helping a parent, read the family guide before your next conversation.