A reverse mortgage loan is repaid when the borrower moves out of the house, sells the house, or passes away. If you live in the home for the rest of your life, and if you continue to stay current with your home insurance and property taxes, it is possible for you to not have to pay the loan back during your lifetime.

If you move out of or sell the house, the loan will be become due, and most people use the proceeds from the sale of the house to pay back the loan. You keep the remaining amount. If you pass away before this happens, then your home will go to your estate. Your heirs could sell the home and do the same as explained above, or, if they want to keep the property, they could take out another traditional mortgage on the house or re-finance.

Also, when the loan does become due, borrowers are given 6 months to repay the loan, and are often given another 6 months extension if needed, so both you and your heirs have plenty of time to pay the loan back on time. If you have other questions regarding repayment or just reverse mortgages in general, I suggest you get in contact with one of our professionals here at AAG. They will be able to give you detailed answers to any of your questions over the phone.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.