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My reverse mtg is currently $360,000. My home is worth about $500,000. Can the mgt holder tag on more costs?

by kathyo225873 from , California. Jul 5th 2015 Reply


Ray Jones (OneRay)
#868 ranked lender in California - 10 contributions

You would need to define what "costs" of refer to, however, the DEFINITION of a Reverse Mortgage is that the balance increases. The "costs" that are "tagged on" each month are the interest that has accrued on the current balance and any monthly fee that you chose to pay when you obtained your loan. The servicer is also allowed to charge a small service fee each time you make changes to the draw method. You are allowed to make payments on a reverse mortgage should you wish the balance to remain the same.

Jul 6th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,782 contributions

I'm not sure what you mean by "more costs".. But if you have a reverse mortgage, your lender is contractually obligated to add interest monthly and if there is a monthly payout as well, then it must continue, and will be added to your balance.. even if your mortgage balance becomes higher than what the property is worth, they still have to continue.. you can however pay off your loan anytime, you can sell your property, or you can continue to live there as long as you wish.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jul 6th 2015
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