FAQ – Reverse Mortgage Pre-Payment

What is a Reverse Mortgage?

A Reverse Mortgage is...


Can I make a partial prepayment to my reverse mortgage account?

Most reverse mortgages will permit a partial prepayment to your reverse mortgage account without penalty.


How are my partial prepayments applied to my loan balance?

If you currently have a HECM reverse mortgage, then your payments are applied in the following order to that part of your loan balance representing mortgage insurance premiums.
                           
To that part of your loan balance representing servicing fees.
To that part of your loan balance representing interest charges.
To that part of your loan balance representing principal advances.


Can I pay off my reverse mortgage before a maturity event is reached?

Yes. You can pay your reverse mortgage in full at any time during the term of your reverse mortgage.


Why have I received a notice that my loan is being assigned to HUD?

When your outstanding loan balance reaches 98% of your maximum claim amount, your loan servicer may assign your loan to HUD.