When you get a reverse mortgage you still own your home. This means you're responsible for the general maintenance and upkeep of your home.
Additionally, you're responsible for paying all ongoing property taxes, property insurance and flood insurance (where applicable). If you wish, you can pay for these expenses with funds from your reverse mortgage.
Potential effects on taxes and government aid
With any reverse mortgage, it's important to understand how your existing financial situation may be affected. A reverse mortgage may affect your tax status and/or your eligibility for government aid programs. Also, your eligibility to participate in any real estate tax deferral program offered by your city or county may be affected. For additional information about your specific situation, we recommend contacting a tax professional.
Property Taxes: Since you still own your home when you get a reverse mortgage, you are still responsible for paying all ongoing property taxes. You may be able to use the proceeds from a reverse mortgage to help make these payments. It's important that you keep your taxes current because the loan may become due if they're not paid.
Government Aid Programs: Reverse mortgages don't affect entitlement programs such as Medicare. However, certain need-based government aid programs, such as Supplemental Security Income (SSI) and Medicaid, may be affected. We recommend that you consult your Medicare, Social Security or Medicaid administrator to determine the specific rules.
Insurance: After getting a reverse mortgage, you will continue to be responsible for maintaining an acceptable amount of property insurance, including flood insurance, where necessary.
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Fees and Interest Rates
