The Reverse mortgage or HECM loan are almost always misunderstood. The most common misconception is that the home signed over to “the Bank” or a financial institution. Nothing could be further than the truth.
Below is what a Conventional Mortgage and a Reverse Mortgage have in common:
The best news is with a reverse mortgage, there are no monthly payments required. You remain the owner of your home and repayment of the mortgage is deferred for as long as you live in the home. If you don’t make a payment you ARE NOT put into foreclosure. The balance simply increases as interest is added over time. For many homeowners, a reverse mortgage provides a safe and secure means to remain in their home and access cash to improve their quality of living.