Reverse Mortgage FAQ's.

What is Reverse Mortgage?

Reverse mortgage is a loan that permits homeowner to transform some of the equity in their home into cash, while maintaining home ownership. Reverse mortgages work opposite to the traditional mortgages. Instead of making a payment to the lender each month, the lender pays the borrower.

Who is eligible for Reverse Mortgage?

Reverse mortgages are designed for homeowners at least 62 years of age with a reasonable equity in their homes or a very small mortgage balance. Income does not matter to qualify for this type of mortgage loan.

If I already have a mortgage on my home, do I still qualify for a Reverse Mortgage?

The majority of the time, current outstanding mortgages must be paid off at closing.  There are few exceptions.

How much cash can I get?

The amount of cash you can get from a reverse mortgage depends on your age, your home's value and location, and current interest rates. It’s up to you how you would like to receive your money; either in monthly payments, a line of credit, a lump sum, or combination of any two.

What types of homes do not quality for a Reverse Mortgage?

Any secondary residences, holiday homes, movable or manufactured homes not attached to a permanent foundation, rental properties of more than four units and homes on leased lands do not meet the requirements of a reverse mortgage.

How do I pay back?

You do not have to pay back Reverse mortgages until the last surviving borrower dies, sales out, or moves out. The total amount owed at the end of the loan becomes equivalent to all of the cash advances you've received, along with the accumulated interest.

Does Reverse Mortgage affect other benefits I can get?

The money from a Reverse Mortgage does not influence Social Security, Medicare or pension benefits. But we suggest you consult your financial advisor in this matter.

What are the upfront costs?

The costs associated with a reverse mortgage include an origination fee, and actual closing costs, an FHA mortgage insurance premium, and some other costs. A reverse mortgage agent can provide you with a personalized cost estimate if you want.

What are the rates?

The interest rates can be adjustable or fixed.  Rate are based on current market conditions.

Do I lose my home to the lender when I pass?

No, this is a totally false. Similar to a regular / forward mortgage, the mortgage balance at the time of your passing will become due, so your heirs will need to make a decision if they wish to refinance and keep the home or sell the home and keep what is left over in equity (if there is equity left.)  Most importantly, because the reverse mortgage is a non recourse loan, your heirs will not owe or personally liable, for more than what the home (the collateral) is worth.

For any further queries, please call us at 1-866-244-2303.