What Are Reverse Mortgage Borrowers Responsible For?

reverse mortgage advisor connecticutThe HECM Reverse Mortgage program in Connecticut continues to help thousands of retirees create the life of their dreams.  Homeowners, age 62 and over, are eligible for this type of loan.  A huge advantage is the borrowers will live mortgage payment FREE, but they will still have some responsibilities, including a small amount of financial obligations.

Here are the four main commitments borrowers of a reverse mortgage will continue to be required to take care of:

Homeowners Insurance

A reverse mortgage is like other conventional loans requiring the holder to purchase and maintain homeowners insurance, but unlike a conventional loan, this is not part of the loan itself and must be maintained by the homeowner as a separate entity. 

Property Tax

This too is the same as with a conventional loan. The reverse mortgage homeowner will need to pay the property tax. Depending on your financial need, assistance may be available to help pay or defer property taxes.  Your reverse mortgage advisor and your local human services office would have more information about such assistance.

Home Maintenance

Your home remains in your possession, so the maintenance of your home remains your responsibility.  Any applicable HOA fees also remain the responsibility of the borrower.

Utilities

All utilities, such as electricity, gas, water, and trash will remain the borrowers responsibility.

Reverse mortgage is an individualized, specialized loan for those 62 and older that allows older Americans to tap into the equity of their home while living mortgage and loan payment free.  The funds can be accessed via a lump sum, line of credit, monthly installments, or even to purchase a home. If you are planning ahead let your advisor guide you to best suit your needs and desires.

Sara Cornwall is a local Reverse Mortgage Advisor serving the entire state of Connecticut. Contact Sara and learn if reverse mortgage is right for you.

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