Top 10 Reverse Mortgage Questions

• What is a Reverse Mortgage

A reverse mortgage is a powerful financial tool that enables qualified participants to access a portion of the equity that is in their home.

• Will I Qualify For Money

The amount of money an individual qualifies for will depend on a number of factors. These factors include the age of the youngest borrower that will remain on title, which type of Reverse Mortgage that you choose, the value of your house, current loan balance, if any, and current interest rates.

• Why is Counseling Required

A Reverse Mortgage can be a great vehicle to Financial Independence for a lot of people. But it is an important decision, one that should be made once all the facts have been presented.

• What Are The Requirements

Age 62 years of age or older, Own your property, Occupy your property as primary residence, Participation in a consumer information session given by an approved HECM counselor.

• Reverse Mortgage Payments

There Are 4 Options to Choose From When Receiving Your Payments.

• When Do I Repay the Loan

A reverse mortgage does not have to be repaid until the borrower or borrowers permanently leave the home. As long as at least one of the borrowers maintains the property as their primary residence and continues to pay the property taxes and insurance, the loan does not come due.

• How Can I Use the Money

Borrowers can use the funds from a reverse mortgage for whatever they wish. Many borrowers have used the funds to pay for health care.

• Reverse Mortgage Costs

The costs of a reverse mortgage are similar to that of a conventional loan. There is an origination fee, appraisal fee, title and escrow fees, and in the case of the FHA reverse mortgage, there is an up front mortgage insurance premium that is charged.

• Property Taxes and Insurance

Yes. A reverse mortgage does not relieve the borrower of the responsibility of paying property taxes or home owners insurance. It is important that the borrower maintains the proper amount of insurance that the lender requires.

• Why Not Take an Equity Loan

A reverse mortgage loan is different from a traditional loan or home equity line of credit for several reasons. A home equity line of credit requires that the borrower have a sufficient amount of income compared to their debt to qualify for a loan.