What are the advantages and disadvantages of a reverse mortgage sets the stage for this enthralling narrative, offering readers a glimpse into a story that is rich in detail and brimming with originality from the outset. It’s a journey into the heart of a financial tool designed to unlock the value homeowners have painstakingly built over years, presenting a complex tapestry of potential benefits and significant considerations.
Understanding this mechanism is crucial for those navigating their golden years, seeking to enhance their financial well-being without compromising their cherished home.
This exploration delves into the core concepts, from eligibility and purpose to the various types available, laying a solid foundation for comprehending how these unique loans function. We will meticulously dissect the ways a reverse mortgage can offer unparalleled financial flexibility, serving as a vital source for income supplementation and covering essential living expenses. Furthermore, we’ll examine its capacity to help seniors avoid the difficult decision of selling their primary residence, presenting it as a powerful financial instrument in specific circumstances, and comparing its tax implications to other income streams.
Understanding Reverse Mortgages: Core Concepts
Yo, so like, imagine you’re an older dude or dudette, maybe chilling in your Surabaya crib for ages, right? And you’ve got some equity stacked up in that pad. A reverse mortgage is basically a way to tap into that cash without selling your house. It’s kinda like the bank giving you money based on your home’s value, and you don’t have to pay it back until you, like, move out permanently or, you know, kick the bucket.
It’s a real chill way to get some extra dough for retirement without the stress of monthly payments.The main idea is to let homeowners, usually those 62 and older, convert a portion of their home equity into cash. This isn’t a loan where you’re making payments. Instead, the lender pays you. This can be super helpful for covering living expenses, medical bills, or even just to have some extra fun money for your golden years.
It’s all about making your retirement life a bit more comfortable and less financially tight.
The Fundamental Mechanism of a Reverse Mortgage
So, how does this whole thing even work, you ask? It’s pretty straightforward, actually. The bank gives you money, either as a lump sum, monthly payments, or a line of credit. The amount you can get depends on a few things: your age, the current interest rates, and the appraised value of your home, or 90% of the home’s current appraised value, whichever is less.
The cool part is that you don’t have to make any monthly mortgage payments. The loan balance grows over time because of the interest and fees added. The whole shebang gets paid back when the last borrower leaves the home, usually through the sale of the property.
Eligibility Requirements for Obtaining a Reverse Mortgage
Alright, so who can even get this reverse mortgage thing? It’s not for just anyone, you know. There are some key hoops you gotta jump through.
- Age: You gotta be at least 62 years old. This is a hard rule, no exceptions.
- Homeownership: You need to own your home outright or have a significant amount of equity built up. Like, you can’t have a massive mortgage still hanging over your head.
- Primary Residence: The house you’re using has to be your main crib, your primary residence. You can’t do this with a vacation home or an investment property.
- Financial Assessment: The lender will check your financial situation to make sure you can still handle things like property taxes, homeowners insurance, and home maintenance. They don’t want you to get into trouble.
- Counseling: You’ll have to go through a counseling session with an independent, HUD-approved agency. This is to make sure you totally get what you’re signing up for.
Primary Purpose and Intended Beneficiaries of Reverse Mortgages
The main gig behind reverse mortgages is to give seniors a financial lifeline. Think of it as a way to unlock the value you’ve built up in your home over the years. The primary beneficiaries are typically older homeowners who are looking for ways to supplement their retirement income. This could be for anything from covering daily living costs, like groceries and utilities, to dealing with unexpected medical expenses, or even just to have the freedom to travel or pursue hobbies without worrying about money.
It’s all about enhancing their quality of life during their retirement years.
Different Types of Reverse Mortgages Available
So, it’s not just one type of reverse mortgage, dude. There are a few options you can pick from, depending on what works best for your situation.
- Home Equity Conversion Mortgage (HECM): This is the most common type, and it’s actually insured by the FHA. It’s a good option for most people because it has some consumer protections built in. You can get your money as a lump sum, monthly payments, or a line of credit.
- Proprietary Reverse Mortgages: These are offered by private lenders and aren’t insured by the government. They can sometimes offer higher loan amounts than HECMs, especially for younger borrowers or those with very valuable homes. However, they might have different rules and fees.
- Single-Purpose Reverse Mortgages: These are usually offered by non-profit organizations or state and local government agencies. They’re typically for a specific purpose, like paying for home repairs or property taxes, and often have lower costs than other types.
The way you receive the cash from a reverse mortgage can also vary, which is pretty neat. You can choose to get it as:
| Payout Option | Description |
|---|---|
| Lump Sum | You get all the money at once. This is good if you have a big expense coming up. |
| Monthly Payments | You receive regular payments, like a salary, for a set period or as long as you live in the home. |
| Line of Credit | You can draw money as needed, up to a certain limit. This gives you flexibility. |
| Combination | You can mix and match these options, like getting a small lump sum and then a line of credit. |
The Upside: Perks of a Reverse Mortgage for Homeowners
Yo, so you’re getting older, right? And you own a crib in Surabaya? That’s dope! Now, imagine your house could actually help you out financially, like, without you having to sell it. That’s where a reverse mortgage comes in, fam. It’s basically a way for seniors to tap into their home equity and get some cash.
Think of it as your house giving you a high-five with some extra dough. It’s all about making your golden years a bit more chill and less stressed about money.This whole reverse mortgage thing is designed to give older homeowners, usually 62 and up, some serious financial breathing room. Instead of you paying the bank, the bank pays you. Mind-blowing, right?
It’s a smart move if you’ve got a decent chunk of equity built up in your place. It can totally change the game for how you manage your cash flow and live your life.
Financial Flexibility and Freedom
Okay, so this is the main jam. A reverse mortgage is like unlocking a secret vault in your house. It gives you options, man. You can get the money as a lump sum, a steady monthly payment, or even a line of credit you can dip into when you need it. This means you’re not stuck with just your pension or savings.
You’ve got more control over your money, allowing you to do stuff like travel, upgrade your home, or just have a cushion for unexpected expenses. It’s all about having that freedom to live life on your terms.
Boosting Your Income and Covering Expenses
Let’s be real, living expenses ain’t cheap, especially when you’re not working full-time anymore. A reverse mortgage can seriously beef up your monthly income. Think of it as an extra paycheck, straight from your house! This extra cash can be a lifesaver for covering your everyday bills, like groceries, utilities, and healthcare costs. Plus, it can help you avoid dipping into your retirement savings too quickly, making your money last longer.
Keeping Your Home Sweet Home
One of the biggest wins here is that you can stay in your home. No need to pack up your stuff and move to a smaller place or an assisted living facility if you don’t want to. You can keep living in the neighborhood you know, surrounded by your memories and your community. This is huge for maintaining your independence and overall well-being.
You’re basically using your home’s value to stay in your home, which is pretty epic.
While the advantages of a reverse mortgage often center on financial flexibility for seniors, the disadvantages can be significant, prompting a closer examination of related financial instruments. Understanding the nuances of borrowing, such as determining how many cosigners can you have on a mortgage , becomes relevant when considering the overall landscape of home equity access, ultimately impacting the perceived benefits and drawbacks of a reverse mortgage.
Scenarios Where It Shines, What are the advantages and disadvantages of a reverse mortgage
So, when is this reverse mortgage thing a total game-changer?
- Healthcare Needs: Imagine you or your partner needs some medical treatment or ongoing care that’s not fully covered by insurance. A reverse mortgage can provide the funds to pay for it without stressing about how to afford it.
- Home Improvements: Maybe your place needs some serious upgrades to make it more comfortable and accessible as you age, like ramps or a walk-in shower. A reverse mortgage can fund these essential renovations.
- Debt Reduction: If you’ve got some lingering debts, like credit card bills or a small personal loan, the proceeds from a reverse mortgage can help you clear them, freeing up your monthly cash flow.
- Travel and Hobbies: You’ve worked hard your whole life, right? Now’s the time to enjoy it! A reverse mortgage can give you the financial freedom to travel, pursue hobbies, or spoil your grandkids.
Tax Implications: A Closer Look
This is where it gets interesting. The money you get from a reverse mortgage is generally not considered taxable income. That’s a big deal compared to, say, taking money out of your investment accounts, which might be taxed.
Reverse mortgage proceeds are typically treated as loan advances, not income.
This means you don’t have to report it on your tax return, which can save you a significant amount of money. It’s like getting a financial boost without the tax man taking a bite. However, it’s always a good idea to chat with a tax advisor to make sure you’re totally clear on your specific situation.
Disadvantages and Risks Associated with Reverse Mortgages
Yo, so while reverse mortgages sound chill for getting some cash from your crib, it ain’t all sunshine and rainbows, fam. There are some serious downsides and risks you gotta know before you jump in. Think of it like this: getting money now means less for later, and sometimes, way less.
Impact on Heirs and Estate Value
This is a biggie, especially if you got fam who’s expecting to inherit your place. When you pass on, your heirs gotta deal with the reverse mortgage debt. They can’t just keep the house for free. They’ll have to pay off the loan balance, plus interest and fees, or sell the house to cover it. If the house is worth less than the loan, they might end up owing money, which can seriously mess with their inheritance plans.
It’s like, “Surprise! You owe us for Grandma’s house.”
Fees and Closing Costs
Getting a reverse mortgage ain’t cheap, bruh. There are a bunch of fees and costs upfront that can add up faster than you can say “interest.” We’re talking about origination fees, appraisal fees, title insurance, recording fees, and sometimes even a third-party consultant fee. These costs can eat into the amount of money you actually get from the loan, so it’s crucial to get a clear breakdown of everything before you sign on the dotted line.
It’s like paying a hefty cover charge just to get in the club.
Depleting Home Equity Too Quickly
This is where things can get dicey. Reverse mortgages let you tap into your home equity, but if you’re not careful, you can burn through it way too fast. If you take out a large lump sum upfront or spend the money like it’s going out of style, you might find yourself with no equity left. This leaves you vulnerable if you need more cash down the line or if your heirs want to keep the house.
It’s like having a giant pizza and eating the whole thing on the first night – no leftovers for tomorrow.
Situations Where a Reverse Mortgage Isn’t Ideal
Honestly, a reverse mortgage isn’t for everyone. If you’re planning to sell your house soon, it’s probably not the best move because of all those upfront fees. Also, if you’ve got a ton of debt you need to pay off, a reverse mortgage might just be a band-aid, not a cure. And if you’re expecting a big inheritance yourself or have other assets, you might not even need to tap into your home equity this way.
It’s like wearing a tuxedo to a casual beach party – just doesn’t fit the vibe.
Ongoing Costs
So, you got the loan, you’re getting cash, but the bills don’t stop. You still gotta pay for things like mortgage insurance premiums, which protect the lender if the loan balance exceeds the home’s value. Then there are servicing fees for managing the loan. These costs get added to your loan balance, meaning your debt grows over time. It’s like a subscription service you can’t cancel, constantly chipping away at your equity.
Financial Planning and Reverse Mortgage Considerations
Yo, so you’re thinking about a reverse mortgage, right? It’s not just about getting cash, it’s gotta fit into your whole money game plan. Think of it like leveling up your financial life, but you gotta be smart about it. We’re talking about making sure this move doesn’t mess up your future chill vibes.This section is all about getting your ducks in a row before you commit.
It’s your ultimate cheat sheet to navigating the whole reverse mortgage maze without getting lost. We’ll break down what you need to do, what you need to ask, and how to make sure it’s actually a good move for your wallet long-term.
Step-by-Step Guide for Homeowners Considering a Reverse Mortgage
Alright, so you’re vibing with the idea of a reverse mortgage. Before you dive headfirst, let’s map out the process so you’re not just winging it. This ain’t a sprint, it’s a marathon with some important checkpoints.
- Do Your Homework: Seriously, don’t just trust the first person who slides into your DMs. Understand what a reverse mortgage is, how it works, and if it even makes sense for your situation.
- Get Pre-Approved (Sort Of): Talk to a few lenders to get an idea of how much you might be eligible for. This isn’t a commitment, just a feeler.
- Mandatory Counseling: This is a non-negotiable step. You’ll have to chat with a HUD-approved counselor. They’re there to make sure you get the full scoop, no shady business.
- Choose Your Loan Type: There are different kinds of reverse mortgages, like HECM and proprietary. Your counselor will help you figure out which one is the best fit.
- Gather Your Documents: Get ready to show your financial life. Think proof of income, property details, and all that jazz.
- Application and Underwriting: This is where the lender digs deep into your finances and your home’s value.
- Closing Day: If everything checks out, you’ll sign on the dotted line. Congrats, you’re officially on your way to getting those funds.
- Ongoing Obligations: Remember, this ain’t free money forever. You still gotta keep up with property taxes, homeowners insurance, and maintain the home.
Crucial Questions Seniors Should Ask Before Proceeding with a Reverse Mortgage
When you’re talking to lenders and counselors, you gotta come prepared with some serious questions. Don’t be shy, this is your money and your future we’re talking about. These questions will help you get the real deal and avoid any nasty surprises down the line.
- What is the current interest rate, and how does it change over time?
- What are all the fees involved, upfront and ongoing? Can you give me a breakdown?
- How will the loan balance grow over time, and what happens to the equity?
- What are the repayment terms, and when does the loan become due?
- What happens if I need to move out or sell the home?
- What are my responsibilities for property taxes, homeowners insurance, and home maintenance?
- Are there any non-borrowing spouse protections?
- What happens if the loan balance exceeds the home’s value?
- What are the options for receiving the loan proceeds (lump sum, monthly payments, line of credit)?
- What are the implications for my heirs?
Framework for Evaluating Long-Term Financial Implications of a Reverse Mortgage
Thinking long-term is key here. A reverse mortgage can be a game-changer, but you need to see how it plays out over years, not just months. This framework helps you visualize the ripple effects on your finances.To evaluate the long-term implications, consider these points:
- Impact on Estate: How much of your home’s equity will be left for your heirs? Will there be enough to cover debts or provide an inheritance?
- Cash Flow Sustainability: If you’re relying on the reverse mortgage for monthly income, will it last as long as you need it? Factor in potential increases in living expenses and healthcare costs.
- Asset Depletion: Will accessing your home equity deplete other assets that could have been used for retirement or emergencies?
- Future Healthcare Needs: Estimate potential future healthcare expenses and how the reverse mortgage funds might cover them.
- Inflation and Interest Rate Fluctuations: Consider how inflation could erode the purchasing power of your fixed payments and how rising interest rates might increase the loan balance faster.
- Alternative Income Sources: How does the reverse mortgage fit in with your other retirement income streams like Social Security, pensions, or investments?
Comparing Reverse Mortgage Offers from Different Lenders
Don’t settle for the first offer you get. Lenders have different deals, and you want the one that’s gonna give you the most bang for your buck, without the hidden traps. Comparing is like shopping around for the best deal on your favorite kicks.Here’s how to size up those offers:
- Compare Total Costs: Look beyond just the interest rate. Factor in all the fees: origination fees, mortgage insurance premiums, servicing fees, appraisal fees, title insurance, and recording fees. A lower interest rate might be offset by higher upfront costs.
- Analyze Loan Proceeds: How much money are you actually walking away with after all the costs? Different loan structures (lump sum, tenure, term, line of credit) will yield different amounts and payout schedules.
- Understand Interest Rate Structures: Are you looking at a fixed rate or an adjustable rate? Fixed rates offer predictability, while adjustable rates might start lower but can increase over time.
- Review Loan Terms and Conditions: Pay close attention to any specific clauses, restrictions, or obligations Artikeld in the loan agreement.
- Evaluate Lender Reputation and Service: Look for lenders with good reviews and a history of transparency. A responsive lender can make the process much smoother.
For example, Lender A might offer a slightly lower interest rate but charge a higher origination fee, while Lender B has a higher interest rate but lower upfront costs. You need to crunch the numbers to see which one results in a better overall deal for your specific situation.
Advice on Seeking Independent Financial and Legal Counsel
Seriously, don’t go at this alone. Getting advice from folks who aren’t trying to sell you a reverse mortgage is super important. They’re like your financial and legal wingmen, making sure you’re making the smartest move possible.
“Your money matters. Get expert advice before making big financial decisions.”
It’s always a solid move to consult with:
- Independent Financial Advisor: A fee-only financial planner can help you assess how a reverse mortgage fits into your broader retirement plan, analyze its impact on your estate, and compare it with other financial strategies. They have no vested interest in you taking out a reverse mortgage.
- Real Estate Attorney: A real estate attorney can review the loan documents, explain the legal implications, and ensure your rights are protected. They can also advise on any potential issues related to property ownership and title.
These professionals can offer unbiased perspectives and help you understand the fine print, ensuring you’re fully informed and protected throughout the entire process.
Impact on Heirs and Estate Planning
So, you’ve been thinking about getting a reverse mortgage, which is kinda cool for living your best life now. But, like, what happens to your crib when you’re gone? It’s a big deal for your fam, and you gotta get your head around how this whole thing affects what they’ll inherit. It’s not just about the house; it’s about the money, too, and how it all shakes out.When you get a reverse mortgage, the loan balance doesn’t just sit there; it actually grows over time.
This is ’cause you’re not making monthly payments to pay it down, and the interest keeps adding up. Plus, any money you take out – whether it’s a lump sum, monthly checks, or a line of credit – gets added to that balance. So, by the time you’re no longer living in the home as your primary residence, the amount owed could be way more than what you initially borrowed.
This directly eats into the equity that would otherwise be passed on to your heirs.
Reverse Mortgage Balances and Inheritance
The balance of a reverse mortgage is a dynamic thing. It’s made up of the principal amount you borrowed, plus the accrued interest, and any mortgage insurance premiums. Over the years, as interest compounds and you access more funds, this balance steadily increases. This means that the net value of the home left for your heirs will be reduced by this growing debt.
It’s crucial to understand that the loan doesn’t get paid off by your estate automatically; it becomes a debt that needs to be settled.
The loan balance grows over time due to accrued interest and funds drawn, impacting the equity available for heirs.
Heir Options When a Reverse Mortgage Becomes Due
When the loan becomes due – typically when the last borrower permanently moves out, passes away, or fails to meet loan obligations like paying property taxes and insurance – your heirs aren’t just left holding the bag. They have a few options to deal with the reverse mortgage. They can choose to sell the home. The proceeds from the sale are used to pay off the reverse mortgage balance.
If there’s any money left over after paying off the loan and selling costs, that surplus goes to the heirs. If the sale doesn’t cover the full loan balance, the heirs are generally not personally responsible for the difference, thanks to non-recourse features of most reverse mortgages. Another option is for an heir to buy out the loan balance themselves, keeping the home for their own use.
They would need to secure financing to cover the amount owed.
Communication About Reverse Mortgage Decisions
Talking to your family about getting a reverse mortgage is super important, like, seriously. It’s not just your decision; it affects their future inheritance. If you keep it a secret, they might be blindsided and confused when the time comes. Having open and honest conversations beforehand can prevent misunderstandings and stress later on. You can explain why you’re getting it, how it works, and what they can expect.
This transparency builds trust and allows them to ask questions and understand the situation.
Best Practices for Estate Planning with a Reverse Mortgage
When you have a reverse mortgage, estate planning needs a bit of extra attention. Make sure your will or trust clearly Artikels what should happen with the home and the reverse mortgage. It’s a good idea to include details about who will be responsible for managing the loan payoff or sale of the property. Providing your executor or trustee with all the necessary loan documents and contact information for the lender is also a smart move.
This makes their job a lot easier when they need to handle the estate.
Reverse Mortgages vs. Traditional Home Equity Loans and Legacy
When you think about leaving a legacy, reverse mortgages and traditional home equity loans have pretty different impacts. With a traditional home equity loan, you’re borrowing against your home’s equity and usually making payments. This means the loan balance decreases over time, leaving more of the home’s value for your heirs. A reverse mortgage, on the other hand, allows you to tap into your equity without monthly payments, but the loan balance grows.
This means less equity might be passed down.
| Feature | Reverse Mortgage | Traditional Home Equity Loan |
|---|---|---|
| Loan Balance Over Time | Increases (due to interest and drawn funds) | Decreases (with regular payments) |
| Impact on Inheritance | Reduces equity available for heirs | Leaves more equity for heirs |
| Monthly Payments | Not required (borrower pays taxes/insurance) | Required |
Common Misconceptions and Clarifications: What Are The Advantages And Disadvantages Of A Reverse Mortgage
Yo, so we’ve been diving deep into reverse mortgages, right? It’s kinda like navigating the city streets – gotta know the shortcuts and the dead ends. A lot of people get tripped up by some whack ideas about these loans, so let’s clear the air and get the real tea. It’s super important to get the facts straight so you don’t end up regretting your decisions later, or worse, getting caught in a sticky situation.Think of this section as your personal fact-checker for reverse mortgages.
We’re gonna bust some myths and lay down the truth so you can make informed choices, not just follow the hype. Understanding these points will make the whole process way less confusing and way more empowering.
Reverse Mortgage Interest Rates: The Real Deal
Okay, so a lot of peeps think reverse mortgage interest rates are like, sky-high and a total rip-off. That’s not always the case, fam. While they can be higher than a traditional mortgage, it’s because the loan isn’t repaid until the homeowner moves out, sells the house, or passes away. The interest accrues over time, and since there are no monthly payments required, it can add up.
But here’s the kicker: the rate is usually fixed for fixed-rate loans, or it can adjust over time for adjustable-rate options, similar to regular mortgages. It’s all about understanding the loan terms and comparing offers.
Government Handout? Nah, It’s a Loan
This one’s a major eye-opener for many. Some folks believe reverse mortgages are some kind of freebie from Uncle Sam, like a senior citizen’s bonus. Big nope! A reverse mortgage is aloan*, plain and simple. You’re borrowing against the equity in your home. The government, through the FHA’s Home Equity Conversion Mortgage (HECM) program, actually insures these loans, which provides some protections for borrowers and lenders.
But it’s not free money; it’s a financial product you’re taking out.
Loan Servicing and Repayment: What You Need to Know
Let’s get real about how these loans work after you sign on the dotted line. Your loan will be serviced by a company, much like any other mortgage. They’ll handle your account, send statements, and make sure everything’s in order. Now, about repayment – this is where the misconception about foreclosure comes in. You generally don’t make monthly principal and interest payments on a reverse mortgage.
However, you
- are* still responsible for paying your property taxes, homeowners insurance, and maintaining the home. If you fail to do these things, that
- can* lead to foreclosure. So, it’s not like you can just forget about your house once you get the money.
Foreclosure Fears: Busting the Myth
This is a big one that scares a lot of seniors. The idea that getting a reverse mortgage means you’ll automatically lose your home to foreclosure is a total myth. The
only* way a homeowner typically faces foreclosure with a reverse mortgage is if they don’t meet their loan obligations, which are
paying property taxes, keeping homeowners insurance current, and maintaining the home in good condition. If you uphold these responsibilities, you can stay in your home for as long as you live there. The loan balance only becomes due when the last borrower permanently leaves the home.
Counseling: Your Secret Weapon Against Confusion
You know how sometimes you just need a friend to explain stuff that sounds like rocket science? That’s what the mandatory counseling for reverse mortgages is all about. Before you can even get a HECM, you have to chat with an independent, HUD-approved counselor. These folks are not selling you anything; their job is to make sure you totally understand how the reverse mortgage works, including all the nitty-gritty details, the costs, and your obligations.
They’re there to answer all your questions and help you figure out if it’s the right move for your financial situation. It’s like a pre-game pep talk to make sure you’re ready for the big game.
Last Recap
In essence, the decision to pursue a reverse mortgage is a profound one, laden with both the promise of enhanced financial security and the weight of potential long-term implications for one’s estate and heirs. It is a path that requires careful navigation, a thorough understanding of the intricate details, and a clear vision of future financial goals. By arming oneself with knowledge, seeking expert guidance, and engaging in open dialogue with loved ones, individuals can make an informed choice that truly serves their best interests, ensuring their twilight years are as comfortable and secure as they deserve to be.
Question Bank
What is the primary goal of a reverse mortgage?
The primary goal is to allow homeowners, typically seniors, to convert a portion of their home equity into cash, which can be used for various purposes like supplementing income, covering healthcare costs, or making home improvements, without having to sell their home.
Can a reverse mortgage be taken out on any type of home?
Generally, reverse mortgages are available for owner-occupied primary residences. The property must meet certain age and condition requirements, and it typically needs to be a single-family home, though some programs may cover multi-unit dwellings under specific conditions.
What happens if the homeowner moves out of the home permanently?
If the homeowner moves out permanently, for example, into a nursing home for more than 12 consecutive months, the reverse mortgage loan typically becomes due and payable. The loan balance, including accrued interest and fees, would need to be repaid.
Are there any age restrictions for a reverse mortgage?
Yes, for the most common type of reverse mortgage, the Home Equity Conversion Mortgage (HECM), the youngest borrower must be at least 62 years old. Other proprietary reverse mortgage products may have different age requirements.
Do I have to make monthly payments on a reverse mortgage?
No, with a reverse mortgage, you do not have to make monthly principal and interest payments as long as you live in the home as your primary residence, pay your property taxes and homeowners insurance, and maintain the property.
