Reverse Mortgage FAQ

TOP 10 REVERSE MORTGAGE QUESTIONS

1) What is a reverse mortgage?

A loan for homeowners 55+ that lets you access home equity without selling or making monthly payments.

2) Do I still own my home?

Yes, you remain the legal owner and stay on title.

3) When is the loan repaid?

Typically when you sell the home, move out permanently, or pass away.

4) How much can I borrow?

Based on your age, home value, location, and lender guidelines its usually up to 55% of your home’s value.

5) Are monthly payments required?

No regular payments are required; interest accrues over time and is repaid when the home is sold.

6) Will I owe more than my home is worth?

Most lenders offer a No Negative Equity Guarantee, ensuring you never owe more than the home's value.

7) What can I use the money for?

Anything you wish: supplementing retirement income, paying off debt, travel, renovations, or helping family.

8) Is the money tax-free?

Yes, funds from a reverse mortgage are not considered taxable income.

9) Do I need good credit to qualify?

No, qualification is based primarily on age and home equity, not credit or income.

10) Can I pay it off early?

Yes, but early repayment may come with a prepayment charge depending on the lender and timing.