What is a reverse mortgage?
The easiest way to understand the reverse mortgage is to immediately eliminate the concept that it is different than a traditional mortgage.
There are a few difference yes, but the same concepts remain true.
The homeowner is getting a loan, but they are only getting a loan on the equity available in the home. If there is equity in the home, the borrower will receive cash payouts. The borrower can pay down that loan if they choose, unlike a traditional mortgage where it’s a requirement. The homeowner must be over 62 years of age and must reside on the property as their primary residence to obtain a reverse mortgage.
Do I need title insurance for a reverse mortgage?
The Title Policy process is the same as with any traditional mortgage. The Owner’s Policy is valid during the entire time that the homeowner owns their property. However, the reverse mortgage lender will require a new Title Mortgage Policy during the loan transaction.
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