older couple in house

Speaking to your parents about their financial future is a difficult conversation. If you are looking into options to let your parents live comfortably throughout their retirement, a reverse mortgage can answer your worries. To learn more about when you should talk to your parents about a reverse mortgage, watch the video below:

Things to know about Reverse Mortgages:
  • At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds
  • Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums, and servicing fees
  • The loan balance grows over time and interest is charged on the outstanding balance
  • The borrower remains responsible for property taxes, hazard insurance, and home maintenance, and failure to pay these amounts may result in the loss of the home
  • Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment
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