Key Features of a Reverse Mortgage Loan

Some of the key features of reverse mortgage loans include:

  • No monthly payments are required, although the borrower is still responsible for property taxes and insurance, as well as maintaining the property and keeping it in good repair.
  • The loan does not have to be repaid until the borrower dies, sells the home, or permanently moves out of the home.
  • The loan amount is based on the value of the home, the age of the borrower, and the interest rate.
  • Reverse mortgage loans can be used for any purpose, including home improvements, medical expenses, or living expenses.
  • The money you receive from a reverse mortgage loan is generally tax-free, however you will need to seek advice from your accountant or tax advisor.
  • If a non-borrowing spouse under the age of 62 loses their borrowing spouse or their spouse permanently leaves the home, they will be allowed to remain in the home.