Reverse Mortgage Statement – Explanation of Terms:
1. Statement Date: The time period that the statement represents. In the sample statement, it is displaying all of the loan activity that occurred during the month of October.
2. Payment Plan: This is the current payment plan type that has been selected. In the sample statement, the borrower selected a “Line of Credit” payment plan option.
3. Loan Number: This is your reverse mortgage loan number. You will want to reference this loan number when you call our Reverse Mortgage Servicing Department for any questions on your loan.
4. Loan Balances: This box details the breakdown of your reverse mortgage loan balance. It also will display any advances or repayments on your reverse mortgage, as well as any finance charges or servicing fees for the past month. If you would like to know your loan balance as of the last day of the statement, look at the figure in the bottom right hand side of the box.
In the sample statement, the borrower’s total loan balance was $92,092.45.
5. Set Asides: This box represents the balances and any activity that may have taken place with the set-asides on your reverse mortgage. There are several different types of set asides (Repair set asides, Tax/Insurance Set Asides, etc.). These set-asides are used to designate some of your reverse mortgage funds for required purposes. As an example, if you have funds set aside to complete required repairs to your home, you will see a figure in the “Repair Set-Aside” column. Not all loan types are required to have set-asides, so you may not see any activity in this section.
6. Total Available Funds: This box displays the calculation of any remaining funds that you have available to borrow on your reverse mortgage. In the sample statement, the borrower has a total of $59,845.07 still remaining that they can borrow.
7. Line of Credit: This box displays any money remaining that is available to borrow on the line of credit, if you selected a line of credit as part of your payment plan option. If you did not select a line of credit as part of your payment plan option, then this box will be blank. In the sample statement, the borrower has $59,845.07 still remaining that they can borrow on their line of credit.
8. Interest Rate: This is the breakdown of the interest rate on your reverse mortgage during the statement period. In the sample statement, the interest for the month of October was calculated using 5.16%, and the mortgage insurance premium was calculated using 0.50%.
9. Interest Rate Change Notice: This is a notice to you of any changes upcoming in your reverse mortgage interest rate. In the sample statement, the borrower’s interest rate will be decreasing to 4.97% on December 1st.
10. Finance Charges Current Cycle: This is the total amount of interest and mortgage insurance premium that has accrued on your reverse mortgage during the statement period.
11. Total Finance Charges: This is the total amount of interest and mortgage insurance premiums that have accrued since you received your reverse mortgage. This figure includes the up-front mortgage insurance premium – if applicable – (which was collected at the time of closing), as well as all of the monthly interest and mortgage insurance premiums accrued on your loan.
12. Servicing Fees Current Cycle: This is the dollar amount of the monthly servicing fee that was added to the loan balance. This monthly servicing fee is determined at the time of closing.
13. Total Servicing Fees Accrued: This is the total amount of the monthly servicing fees that have accrued since you received your reverse mortgage.
14. Transaction Detail: If you had any transactions (line of credit advances, repayments, accrued interest, monthly scheduled payments, etc.) on your reverse mortgage during the statement period, they are listed here. In the sample statement, they did not have any activity other than the $467.17 in accrued interest, mortgage insurance premiums, and monthly servicing fee.
Post Closing FAQs
How can I request funds from my Line of Credit?
What should I do if I have required repairs that need to be completed?
How do I arrange for my payments to be deposited directly into my bank or credit union account?
When will I receive my scheduled monthly payment?
Who is responsible for paying the property taxes and insurance on my home?
Will I receive an activity statement on my reverse mortgage?
I was told that my loan might “grow”. What does that mean?
Who owns my home?
Annual Occupancy Certification
What happens to my reverse mortgage if I pass away or move from the home permanently?
Who should I contact for any questions about my reverse mortgage?
All Reverse Mortgage® is here to answer your questions!
If you’d like to learn the reverse mortgage statement reads contact the toll free number on your statement or try our Reverse Mortgage Calculator.
PS – We also welcome and respond to comments below…