No! Nor is the loan due. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home's value.

When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by HUD's reverse mortgage loan. This debt will never be passed along to the estate or heirs.

The amount you can borrow depends on your age, the current interest rate, other loan fees and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

I've been contacted by a firm that will give me the name of a lender for a "small percentage" of the loan? HUD does NOT recommend using an estate planning service, or any service that charges a fee just for referring a borrower to a lender! HUD provides this information without cost, and HUD-approved housing counseling agencies are available for free, or at minimal cost, to provide information, counseling, and free referral to a list of HUD-approved lenders. Before you agree to pay a fee for a simple referral, call 1-800-569-4287, toll-free, for the name and location of a HUD-approved housing counseling agency near you.

You have five options:

• Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
   
• Term - equal monthly payments for a fixed period of months selected.
   
• Line of Credit - unscheduled payments or in installments, at times and in amounts of borrower's choosing until the line of credit is exhausted.
   
• Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
   
• Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower. HUD Reverse Mortgage Q&A Part 1 | HUD Reverse Mortgage HOME

Information on HUD REVERSE MORTGAGES

www.investsafely.info gets it's information from sources we believe reliable and in the public domain. (SEC and other government sources). It is our simple intent to collect and give you information about the risks of investing. We are NOT an investment company of any sorts, and are not qualified to give investment advice. Simply an information provider.