When Does the Reverse Mortgage Loan Need To Be Repaid?
The loan repayment is triggered when the home is sold or is no longer occupied as your primary residence. In a case of more than one borrower, repayment is triggered when the last borrower permanently moves out of the home. Until one of these events takes place, the last borrower may live in the home and not make any monthly mortgage payments to the lender.
Your heirs will not be required to repay the loan. The loan can be repaid by refinancing the existing Utah reverse mortgage with a standard mortgage loan assuming you or your heirs want to keep possession of the home. This refinancing is completely up to you and isn’t dictated by the bank as far as that decision goes. Of course, the new borrower will still need to qualify for a mortgage. This will be based typically on the credit and income of the new borrower.
Nothing with this process is “automatic” as far as the later transfer of ownership.
Filed Under Utah Reverse Mortgage |
Tagged With repayment
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