Video tip: Paying Off Reverse Mortgages



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David Guelff

Mortgage Originator / Certified Reverse Mortgage Professional

240164
(310) 698-5962
(310) 802-6939
(310) 849-8231
Email Me
3551 Voyager Street, Suite 103
Torrance, CA 90503

Video tip: Paying Off Reverse Mortgages

1-Minute Video on YouTube:

A frequently asked question about reverse mortgage loans is, “When do I have to pay it off?”. There are several scenarios where a reverse mortgage would have to be paid off. The first would be when the last borrower passes away or moves out for more than a year, so the home is no longer considered their primary residence. If the home is not maintained properly, or the borrower fails to stay current on either their homeowners’ insurance or property taxes that would also cause the loan to come due for payoff. Under these circumstances, the borrower or their heirs have two ways to satisfy the reverse mortgage loan. They can simply choose to sell the home, pay off the mortgage and keep any remaining balance. If the loan balance exceeds the value of the home at that time, the heirs can either sell or purchase the home at 95% of the currently appraised value, and FHA Mortgage insurance will make up the difference. The second option is that the heirs refinance the mortgage and either move into the home themselves or turn it into an investment property by renting it out. But one circumstance borrowers don’t have to worry about is outliving a reverse mortgage, because the term of the loan is the youngest borrower’s 150th birthday. To find out more about how reverse mortgages work, call us today.

David Guelff

Reverse Mortgage Lender in Torrance California

Certified Reverse Mortgage Professional

Manhattan Beach CA


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.

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