Popular Questions?
How Does a Reverse Mortgage Work?
A Reverse Mortgage works like this. First you need to qualify for a reverse mortgage loan, which means you must own a home, be at least 62 years old and have enough equity built up in your
home. The reverse mortgage loan works by making payments to you the borrower based upon the percentage of equity that you have built up in the home. The loan is repaid when you the borrower
sells the home, moves out of the home or dies. The items/considerations that impact the proceeds (net cash) in which you may be eligible for include your age, the value of your home, interest
rate and whether your home conforms with the Federal Housing Administration’s (FHA) mortgage limit of $679,650.
Do I still own my home?
Yes, a Reverse Mortgage is just a loan, you still own your home. A Reverse Mortgage like any mortgage is recorded a lien with the property as collateral. You still hold the title to your
home. If you pay off the reverse mortgage then a re-conveyance is recorded and the lien removed. To retain ownership you must keep current on property taxes and insurance.
Does it eliminate my mortgage payment?
Yes, you will have no mortgage payments with a reverse mortgage. You will still need to pay your taxes and homeowners insurance though
Does it affect my pension, social security or my medicare?
No, it does not effect these programs, it is not income, just a loan
How does a reverse mortgage loan affect my taxes?
It has no effect on your taxes, It is recommended that you speak with your financial advisor to verify your specific situation.
How does a reverse mortgage affect my heirs? my trust?
Just as your heirs would do on any loan on your home, they can refinance it to pay it off or sell the property
What is the Process of Getting a Reverse Mortgage?
The process is very straightforward, especially in working with our over 40 years of experience. We give a personal touch and work with you.
- We interview and consult with you to determine your needs and circumstances
- We research and identify companies that may be right for you, we are tied to one vendor.
- We discuss what options may be available to you; what you may qualify for; what the time required to close your loan looks like and to have your questions answered
- You Attend a counseling session from a licensed third party counseling agency. Housing and Urban Development (HUD) maintain a list of counselors available in your state.
- We help you complete an application with the company that you’ve selected. This is similar to a traditional forward mortgage in that you fill out several pages of documentation to formally apply.
- Underwriting and loan processors then take over and handle everything from getting your house appraised to ensuring that all of your paperwork is in order, We keep you informed all along the way and keep up continuous communication with you about status, time lines, questions and facilitate as smooth a process as possible.
- Your loan closes and you choose your disbursement options. The process is complete, you can now choose how you want to receive the funds of the loan.
Who does not qualify for a reverse mortgage?
Some seniors don’t qualify for a reverse mortgage, because of age (you must be at least 62), or because their “home equity” is too small. Give us a call and we can discuss your situation, we have over 40 years experience and we work hard to find solutions.
I’m 62 but my spouse isn’t are we still eligible for a reverse mortgage?
Just one of the property owners needs to be 62 or older, The co-borrower can be younger.
My property is in a trust can I still get a reverse mortgage?
Yes, both the title company and the lender will do a trust review. Once they approve the trust the loan will be allowed to close in the name of the trust. Amendments may or may not be added at closing to correct a portion of the trust that does not allow for a reverse mortgage if in fact your trust has that component or to add a portion that notifies that trust there is a reverse mortgage against the property per the trust documents. Please consult your trust attorney for your specific needs.
What is the loan term of a reverse mortgage?
The reverse mortgage has no specific term. You can continue to live in your home and continue the reverse mortgage for as long as you live in the home. You can also choose to sell your home at anytime and payoff the current reverse mortgage balance without a prepayment penalty. The option is yours.
How much money can I qualify to receive?
Everyone’s circumstances are different, we suggest you give us a call for a free consultation and we can perform a needs analysis specific to you. There is no cost to you for this service we provide.
Who determines how I use the reverse mortgage proceeds, are there any covenants or conditions for how the funds are used?
No, you determine how to use the funds
What are the reverse mortgage rates?
We have listing and calculators for the latest in reverse mortgage rates, but in reality your best bet is to give us a call so we can help you and get you the best rates possible. Use the calculators and listings for directional information not definitive information.
What is reverse mortgage counseling?
It’s a federal requirement that is necessary to obtain a reverse mortgage. We will provide Each borrower with a list of counseling agencies that are approved to conduct reverse mortgage counseling by the government. These agencies are both national and local to the state. All of the counseling agencies conduct the counseling session over-the-phone with all borrowers present. Some of the counseling agencies might also offer in-person counseling if that is what is preferred. Each session can generally take from 60-90 minutes. The counselor will talk about the reverse mortgage loan and review how to read the loan comparison, TALC and amortization schedules. They will also ask you periodic questions to ensure that you understand the reverse mortgage and the information they are reviewing. Along the way, you are able to ask the counselors any questions that you may have. Once the session is complete the counselor will issue a certificate stating that the borrowers completed the counseling session. The counseling certificate is valid for 180 days and then the process can continue.