Payment Structure · 5 min read
Can You Access Home Equity Without a Monthly Mortgage Payment?
Conventional home-equity borrowing generally begins with a question about capacity: can the borrower service a new monthly principal-and-interest payment?
Qualifying proprietary reverse mortgage structures generally do not require monthly principal-and-interest mortgage payments. Interest and applicable costs may accrue to the loan balance instead.
That is not the same as saying there is no cost. Interest accrues. Costs apply. The balance grows over time and is generally repaid later when the loan becomes due under its contractual terms.
Borrowers generally remain responsible for property taxes, insurance, maintenance and occupancy requirements. Failure to satisfy those obligations can cause the loan to become due.
Check your equity
See an illustrative estimate of your home equity and the portion that may potentially be accessible.
Illustrative information only. This calculator does not constitute an offer, approval, commitment to lend or guarantee of available proceeds. Actual eligibility and proceeds depend on borrower age, property value, appraisal, existing liens, property characteristics, interest rates, applicable proprietary program and lender underwriting requirements. Interest and applicable costs may accrue to the loan balance. Program availability and terms vary.