Tag: maturity event

What is a Reverse Mortgage Maturity Event?

Posted on by janjordan

Reverse Mortgage Colorado Fort Collins Loveland GreeleyWhen a conventional mortgage is taken there is always a maturity date. This date designates, if the borrower never defaults, the last payment (including all interest and principal) bringing closure to the loan.

 

With a reverse mortgage there is a maturity event, that is, a designated event in the borrower’s life which makes the loan then due. Reverse mortgage loans do not require monthly payments which can be quite an advantage for a senior entering into a new phase of life – whether their looking to supplement their income, protect retirement assets and investments, or buy a new home. FHA insured reverse mortgages are offered to those 62 and older based on certain guidelines, such as the home the loan is on must be a primary residence and it must meet HUD’s required guidelines.

 

Maturity event will be a term the borrower will encounter  several times during the application process and required third party counseling.  It’s very important piece for both the borrower and loved ones to understand.

 

Here are some examples of maturity events:

 

• The borrower, (or last borrower if married) passes away.
• The property for which the reverse mortgage is taken is no longer in the borrower’s primary residence.
• The property is sold out of the borrower’s name
• The borrower moves out of the primary residence for more than twelve consecutive months, such as moving in with family or assisted living for care.
• The borrower defaults on property taxes, homeowners insurance, or other obligations to the home.

 

Jan Jordan Reverse Mortgage Info for Fort Collins, Loveland, Greeley, and Front Range areas of Colorado.

Maturity Date versus Maturity Event in Reverse Mortgage Loan

Posted on by janjordan

Reverse Mortgage Loveland fort collins greeley longmont coloradoFor many who have had a conventional mortgage on their home, they are familiar with the “maturity date”.  But with a reverse mortgage, there is no maturity date, only a “maturity event”.  So, what’s the difference?

 

A maturity date indicates the date which the borrower will make the final payment on the loan, including principal and interest.  These are used with conventional mortgages.

 

A maturity event represents a specific event that takes place in the borrower’s life that signifies the loan has come due.  Because reverse mortgage borrowers do not make monthly mortgage payments. many seniors see this as an advantage.

 

Here are some examples of maturity events:

 

  • The property is no longer the borrower’s primary residence
  • The property is sold or transferred out of the borrowers name
  • The borrower (or last borrower on the loan) passes away
  • The borrower moves away from the home for more than 12 consecutive months (such as moving into an assisted living facility)
  • The borrower fall substantially behind on their property taxes, homeowners insurance, or HOA fees.

 

A reverse mortgage is available to seniors 62 and over, regardless of income or credit, and this FHA backed loans allow the borrowers to live mortgage  payment free through their retirement years.

 

Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Longmont, Greeley, and Front Range areas of Colorado as well as Cheyenne and Laramie, Wyoming. Click here to contact Jan and learn if reverse mortgage is right for you.