If I take out a reverse mortgage loan, does the bank own my home?

No. When you take out a reverse mortgage loan, the title to your home remains with you. Just like a traditional mortgage, you are borrowing money and using your home as security for the loan. You must continue to pay for repairs, property taxes, and homeowners insurance or the bank can foreclose on the home.

If you move out, sell the home, or the last surviving borrower dies, you or your estate will need to repay the loan. The loan balance will include the amount you have received in cash, plus the interest and fees that have been added to the loan balance each month. To repay the loan, you or your heirs will probably have to sell the house. If there is money left over from the sale after repaying the loan, you or your heirs can keep the difference.

Tip:

Read more about what happens when you pass away or need to move.

Ask CFPB provides general consumer information. It is not legal advice or regulatory guidance. The CFPB updates this information periodically.

Ask CFPB includes links or references to third-party resources or content. The CFPB does not endorse the third-party or guarantee the accuracy of this third-party information. There may be other resources that also serve your needs.

Read full answer Hide full answer