Tis the season to pay your property taxes…even if you have a Reverse Mortgage. Property taxes and insurance are the homeowner’s responsibility in a Home Equity Conversion Mortgage (HECM), a.k.a. Reverse Mortgage.
The FHA’s Reverse Mortgage is for homeowners 62 or older and allows them to withdraw funds from the equity in their primary residence in a fixed monthly amount or a line of credit or a combination of both.
A Reverse Mortgage can be the right thing in the right circumstances. Sometimes a Reverse Mortgage can be the best solution to help an older person live more comfortably—able to afford medicine, food, and basic living expenses—however, it is not right for everyone. There are positives and negatives which the homeowner needs to know and understand, for instance:
Even if your lender is sending you a monthly mortgage payment, it is up to you to pay taxes and insurance on the property.