What Happens to Your Reverse Mortgage When You Move?

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1. Selling Your Home: If you decide to sell your home, the process is straightforward. The sale proceeds are used to repay the reverse mortgage balance. Any remaining funds after the loan is settled belong to you, providing a financial cushion for your next residence or other needs.

2. Relocating to Another Principal Residence: If your move involves establishing a new principal residence, you can transfer your reverse mortgage to the new property. This ensures you continue to enjoy the benefits of the loan without disruption, allowing you to access the equity in your new home.

3. Temporary Absences: Some reverse mortgage lenders permit temporary absences from your primary residence, typically up to 12 months. This can be beneficial for extended vacations or medical reasons. However, communication with your lender is crucial to ensure compliance with their policies.

4. Loan Payoff: Should you decide not to transfer the reverse mortgage to your new home, the loan must be repaid. This can be done through various means, such as personal funds or other financing options. Understanding your repayment obligations is essential to plan your move effectively.

5. Financial Counseling: Throughout the moving process, consider seeking financial counseling, especially if your circumstances involve changes in income, expenses, or housing. Professional guidance can help you make informed decisions and navigate the complexities of relocating with a reverse mortgage.


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