Frequently Asked Questions - Z Reverse Mortgage

Z REVERSE MORTGAGE WHAT HAPPENS TO MY DEBT? As long as you are living in the home, you will not be required to make any pay- ments on the loan. Once the home is no longer your primary residence, you have sold the home, or you have died, the loan will become due. Once the loan is due you or your heirs will have to either pay the loan or sell the property. Pro- ceeds of the sale will go towards the balance of the loan, but all remaining equity will go to you or your heirs. WHAT HAPPENS WITH A REVERSE MORTGAGE AFTER DEATH? After death the loan will become due. Your heirs will have to sell the home and use the proceeds to pay the balance of the loan. If there is remaining equity, this will go to your heirs once the loan is paid. Under no circumstances will any addi- tional debt be passed onto heirs. If your heirs wish to keep the property, they will have to pay the amount of the loan. WILL THE HOME BE PASSED ON TO MY HEIRS? If your heirs wish to keep the home, they will have to pay the amount of the loan. Otherwise, they will have to sell the home and offer the proceeds to the lender. If there is any remaining equity, the heirs will receive it once the balance of the loan has been paid. WHAT IS THE DIFFERENCE BETWEEN A REVERSE MORTGAGE AND A HOME EQUITY LOAN? REVERSE MORTGAGE When taking out a home equity loan or taking out a second mortgage, you are expected to make monthly loan payments on the principal as well as the interest. With a reverse mort- gage, you will receive payments every month and will not have to make any payments on the principal or interest until you sell the home or no longer live there. WHY SHOULD I GET A REVERSE MORTGAGE? A reverse mortgage is a great option if you are looking for additional monthly income. An HECM reverse mortgage is government-insured, so you are protected against losing your home and you will be able to live there as long as you continue to pay property taxes and hazard insurance. By finding the right loan program and the right lender, you will be able to structure your re- verse mortgage to meet your specific financial needs.