A FHA HECM reverse mortgage is only required to be repaid (1) when the borrower moves, or (2) when the borrower dies. Assume you take out a $300,000 reverse mortgage loan, under the FHA program, for a term of 15 years at 7% annually. The reverse mortgage makes monthly annuity payments. Now, let's say you die 8 years after the loan matures, but you have made no payments. Your family wishes to repay the loan beginning 23 years after origination. What is the total amount they owe? 

Compare the loan balance to be repaid in the previous question with the original loan balance of $300,000. If they are the same, explain in detail why. Similarly, if they are different, justify why they are different. 

Answer rating: 100% (QA)

To calculate the total amount owed on the FHA HECM reverse mortgage we need to consider the loan bal... View the full answer