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Frequently Asked Questions
What is a Reverse Mortgage?
Think of it as an "advance" on the equity in your home. The reverse mortgage loan will use the equity in your home to give you tax free monthly income, and/or line of credit.
What is the qualification?
Very simple, the youngest borrower must be over the age of 62 and there are no outstanding delinquent federal debt. There is no income and credit qualification on a reverse mortgage.
Does the bank own my home?
Absolutely Not!!!!
What are my monthly payments?
There are none, the reverse mortgage pays you a monthly income or you have access to a home equity line of credit.
How much money can I receive?
The amount of money you receive is determined by your home value, the age of the youngest homeowner and the current interest rate. A Reverse Mortgage Expert will assist you in evaluating your options and calculating the maximum amount of money that will be available to you.
What costs are involved?
Just like a standard mortgage loan, reverse mortgage costs include appraisal, credit report, title insurance, legal fees, loan origination, and recording fees. All of these normal loan costs, can be included in your loan balance.
Will I retain ownership of my home?
YES, You retain title and the government designed Home Equity Conversion Program (HECM) allows the borrower to remain in the home until the last remaining borrower vacates or sells the home. Borrower's heirs receive 100% of the remaining equity after loan payoff.
How do I receive the money?
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Tenure Option - Receive equal monthly payments for the rest of your life as long as you occupy the property as your primary residence
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Line of Credit - Draw cash from the reverse mortgage whenever you need it. Interest is only charged on the amount borrowed
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Fixed Term - Receive equal monthly payments for any fixed period of time
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Lump Sum - You can receive all the proceeds at close of escrow
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Modified payment option - You can take any combination of the above payment options
When do I have to repay the Reverse Mortgage?
When the borrower permanently leaves the home, whether they move, sell the house or passes away
If a spouse passes away the remaining surviving spouse continues to receive the full benefits of the reverse mortgage, with no repayment until they decide to permanently leave the home.
How is the Reverse Mortgage paid off:
Typically repaid from the proceeds of the sale of the home or refinance by your heirs. All remaining equity goes to your heirs
What is a counseling certificate:
Free counseling service that is provided by HUD to insure that you understand all aspects of The Reverse Mortgage.