What is a Reverse Mortgage? – Facts
Reverse Mortgage Facts
- A reverse mortgage loan cannot be outlived and will not become due, as long as at least one homeowner lives in the home as their primary residence,
continues to pay required property taxes and homeowners insurance and maintains the home in accordance with FHA requirements.
- An average of 5,000 Reverse Mortgages are funded every month
- More than 800,000 Reverse Mortgages issued since 1990
- Currently, the adjustable interest rate is controlled by the LIBOR (London Interbank Offered Rate) Index. The fixed rate is determined
by the lender and usually based upon the activity in the secondary market. Interest accrues on the portion of the reverse mortgage
that has been used by you and is simply added to the total balance of the loan.
- 80% of borrowers would recommend a Reverse Mortgage to friends and family