Repayment · 6 min read
What Happens to Your Home When a Reverse Mortgage Is Repaid?
The loan balance generally becomes due when a contractual maturity event occurs — commonly the sale of the home, the borrower permanently leaving the property, or another event defined in the loan terms.
When the home is sold, the loan balance is generally repaid from sale proceeds, subject to the loan terms and other liens or obligations.
Remaining equity, if any, belongs to the homeowner or the estate.
Because interest and applicable costs may accrue to the balance over time, the equity remaining at repayment depends heavily on how long the loan is outstanding, the rate environment and property appreciation. Discuss estate implications with your advisors.
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.