This is a very good question. One myth about reverse mortgages is that it is a "too good to be true" mortgage because the borrower has no obligations, but this is not the case. Yes, a reverse mortgage reduces one's financial responsibility towards the home, but does not eliminate it.

The major expenses the borrower is responsible for are the home insurance and property taxes. Even though your mortgage is paid off after getting a reverse mortgage, it is extremely important that you continue to pay these expenses, or your home could go into foreclosure. You are also required to keep up with the maintenance of the home and take proper care of it. The reason is because your home is the lender's only guarantee that the loan will be repaid to them, so it is important to take good care of it so it retains the maximum value if the home is sold.

The only other responsibilities you have are to abide by the loan agreement terms. For example, it is important that you do not move out of the home, and, if you travel frequently, you are there for at least 6 months out of the year. Please make sure you understand ALL the terms of your loan. If you unknowingly fail to keep up with your responsibilities, you could be putting yourself at risk for having to pay your loan back earlier than you planned.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.