Finding a Reverse Mortgage Pro: Key Questions to Ask

A reverse mortgage is a loan that allows eligible homeowners to access equity in their primary residence. A HECM is designed for homeowners age 62 and older. Borrowers retain title to the home, and existing loans must be paid off with reverse mortgage funds. Interest accrues over time, while homeowners remain responsible for property taxes, insurance, and applicable HOA fees.

At least one borrower on title must be age 62 or older, and the property must be the borrower’s primary residence. Other considerations include existing mortgage obligations, available home equity, and the borrower’s ability to continue paying homeowner’s insurance, property taxes, and HOA fees when applicable. A review of the borrower and property is needed to determine eligibility.

Ask how the HECM works, which payment options may be available, how existing loans will be handled, what costs apply, and which responsibilities continue after closing. You should also ask how interest accrues, what happens if you sell the home, how title is handled, and what circumstances could require repayment. Request clear explanations before signing anything.

The service information identifies several possible payment structures: lump sum cash, fixed monthly payments, a line of credit, or combinations of these options. The appropriate structure depends on the loan terms, eligibility, and the homeowner’s objectives. A reverse mortgage professional should explain how each option works and discuss how proceeds may fit within the homeowner’s broader financial plan.

Yes. Borrowers retain title to their home after obtaining a reverse mortgage. They can sell the home at any time, subject to the loan’s repayment requirements. The mortgage balance can grow as interest accrues, so homeowners should ask how a selected payment structure may affect future equity and what obligations apply if the property is sold.

The reverse mortgage service information states that the homeowner does not have to make a mortgage payment for the rest of their life after obtaining the loan. However, homeowners must continue paying property taxes, homeowner’s insurance, and HOA fees when applicable. Interest accrues on the mortgage balance, and borrowers should ask how these obligations affect their long term plans.

Yes. Existing loans must be paid off with reverse mortgage funds. This is an important point to discuss because the current mortgage balance affects the proceeds available for other purposes. Ask the professional to explain how the payoff will be handled, how it affects the proposed loan, and what remaining homeowner responsibilities will continue after closing.

Borrowers can sell their home at any time. Selling generally requires addressing the reverse mortgage balance and other applicable obligations from the transaction. Because interest accrues over time, the balance may differ from the original amount accessed. Ask the reverse mortgage professional to explain the repayment process, title considerations, and how a future sale may affect available equity.