Reverse Mortgage Debt Limit
The debt you owe on a reverse mortgage equals all the loan advances you receive (including any used to finance loan costs or pay off prior debt), plus all the interest that is added to your loan balance. If that amount is less than your home is worth when you pay back the loan, then you (or your estate) keep whatever amount is left over. But if your rising loan balance ever grows to equal the value of your home, then your debt is limited by the value of your home. Put another way, you can never owe more than what your home is worth at the time the loan is repaid.
This overall cap on your loan balance is called a "non-recourse" limit. It means that the lender, when seeking repayment of your loan, does not have legal recourse to anything other than your home's value. The lender may not seek repayment from your income, your other assets, or your heirs.
For more reverse mortgage debt information, visit the Debt Payoff page.
Free Reverse Mortgage Quote and Analysis
Reverse Mortgage Nation will provide you with a no-cost, no-obligation, Free Reverse Mortgage quote. We will only need basic information about you and your property and will be able to offer an instant estimate and analysis regarding a Reverse Mortgage.
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