Reverse Mortgage Education
Center

The what, how, and why of reverse mortgage loans

Whether you have a specific question or are just beginning to gather information, our reverse mortgage loan education center is here for you. Feel free to browse our exclusive library to learn more and get the answers you’re looking for. Whenever you are ready to take the next step, one of our reverse mortgage experts will be happy to talk with you.

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Education Center Topics
A reverse mortgage is a loan available only to senior homeowners* that converts a portion of home equity into usable cash. Borrowers are not required to make monthly mortgage payments, and the loan balance, including any unpaid interest, is not due until a maturity event brings the loan to an end. Though borrowers may forgo mortgage payments for the life of the loan, they do have financial obligations associated with the loan. These obligations include interest that, if unpaid, accrues on the loan balance. The loan terms require that borrowers continue paying property taxes, fees, and hazard insurance. The property must be the borrower’s primary residence, and they must maintain the home. If the homeowner does not meet these loan obligations, then the loan will come due. Learn More

*Age requirements are determined by the type of reverse mortgage. For federally insured reverse mortgage borrowers, the minimum age is 62. For proprietary reverse mortgage borrowers, the minimum age may vary.
Homeowners with a reverse mortgage loan retain the title to their home. This means they remain the owners so long as they comply with the loan terms. These terms include paying property taxes, insurance, and maintenance to avoid defaulting on the loan. Similar to a forward mortgage, the lender will place a mortgage lien on the home as security for the loan. Learn More
Yes and no. Reverse mortgages can be paid off with a refinance like any other mortgage loan. However, it is not generally possible to modify an existing loan. To change the terms of the loan, in most cases, it will need to be refinanced. Refinancing can provide more favorable terms or additional funds if the home's equity has increased. It is also a way to add a new borrower to the loan, for instance, when a non-borrowing spouse reaches the eligibility age.
When a reverse mortgage borrower passes away, stops living in the home as a primary residence, or sells the home, the loan becomes due and payable. There are several ways to resolve the loan, including selling the home or repaying the outstanding mortgage loan balance through other means. Learn More
The primary advantage of a reverse mortgage is the ability to access a portion of the home’s equity in cash payments or as a line of credit without making monthly loan payments.* Because reverse mortgages offer multiple payout options, borrowers are able to tailor the loan to a variety of financial needs and situations. Learn More

*The borrower must meet all loan obligations, including living in the property as the principal residence, maintaining the home, and paying property charges, including property taxes, fees, hazard insurance. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.

Understanding Reverse Mortgage

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A couple who have taken a HomeSafe Second rather than a HELOC to do some home upgrades.
HomeSafe Second vs a home equity line of credit (HELOC)

Learn how our proprietary second-lien reverse mortgage product differs from the more commonly understood HELOC.

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Man learning about a reverse mortgage line of credit
How does a reverse mortgage line of credit work?

A line of credit in a reverse mortgage can offer multiple advantages to borrowers. Here's how they work and how they differ from other line of credit products.

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People learning about home equity conversion mortgages (HECM)
What is a home equity conversion mortgage (HECM)?

A HECM is a reverse mortgage, but not all reverse mortgages are HECMs. Learn how they are different.

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Life of a Reverse Mortgage

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Heirs and reverse mortgage debt
Are heirs responsible for reverse mortgage debt?

When a reverse mortgage borrower passes away, their estate must resolve the debt. While heirs may need to decide how that happens, they are not personally responsible for the debt.

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What happens when a reverse mortgage borrower dies?
What happens when reverse mortgage borrower dies?

What heirs need to know about the end of a reverse mortgage when the last borrower passes away.

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A woman discussing reverse mortgage equity requirements
Reverse mortgage equity requirements

To be eligible for a reverse mortgage, borrowers need to own their homes outright or have substantial equity.

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Reputation and Reality

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Woman happy she is controlling her debt with a reverse mortgage
How to take control of debt with a reverse mortgage

Though a reverse mortgage is a kind of debt itself, there are some distinct advantages to using one to pay off or down other debts.

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Can I get a reverse mortgage if I have bad credit?

Credit ratings are considered in the reverse mortgage financial assessment. Find out what that means for a borrower with a poor credit score.

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Happy couple signing their reverse mortgage loan
When is a reverse mortgage a good idea?

In the right situation, a reverse mortgage can be a powerful tool. Find out if one makes sense for you.

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A man pursuing education about reverse mortgages

Learn what your equity could do for you

Get a general idea of potential payouts based on your age, equity, and home value with our reverse mortgage calculator. From there, one of our licensed specialists can help you get more specific about your options.

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