How do you repay a reverse mortgage?
A reverse mortgage is paid back when you move, sell your home, or pass away.
What is due when the loan is repaid?
The borrower pays back the cash advances they have received plus accumulated interest and any fees/costs that were financed.
Can the interest charged on my loan be deducted for tax purposes?
The interest accrues and is deductible when the loan balance and interest are paid after the borrower permanently leaves the property, sells or refinances (see your tax advisor).
Do I or my heirs have to sell the property to repay the loan?
No, repayment may be accomplished by refinancing with a conventional mortgage loan as long as the home and borrower qualifies.