Donna Millen from Wells Fargo brought in a guest speaker to our business meeting last Wednesday to educate us on reverse mortgages. Clients 62 years of age and older can take a reverse mortgage out on their home (existing or new purchase) and never make another payment. In fact, the bank pays them! The P&I is collected on the mortgage when the property is sold. It gives seniors an opportunity to stay in their home for no monthly payment. They can take the money from the mortgage in a lump sum or in monthly payments. At the time the property is sold (usually by heirs) if the amount of the mortgage P&I due is greater than what the property can sell for, then the mortgage insurance kicks in and there is no loss that the heir now has to cover. On the other hand, if it is paid off and there is money left over, then the heirs get that amount. It seems like a win-win situation. The maximum loan amount is currently $417,000 and there is about a 2% increase in closing costs to cover the insurance on the loan.