A reverse mortgage allows homeowners (62 and older) who have paid all or most of their existing mortgage, to withdraw a portion of their home's equity. This is considered tax-free income. It needs to be repaid, however, if the homeowner dies or elects to sell the home. The advantages...
"mortgage" and "deed of trust" have the same meaning.) A "due-on-sale" clause says that if the property is sold or conveyed to a new owner, like through an inheritance, the lender canaccelerate the loan, and the entire outstanding balance...
As such, reverse-mortgage terminations are primarily driven by rates of mortality and mobility, which is the timing of borrower deaths and voluntary loan payoffs associated with moving out of the mortgaged property. Understanding loan termination behavior and the expected cash flow is vital to ...