Offering Reverse Mortgages for Over 20 Years
WISDOM COMES WITH EXPERIENCE
Reverse Mortgages - Frequently Asked Questions
Here are some commonly asked questions about reverse mortgages, and some helpful answers.
1. Am I eligible for a Reverse Mortgage?
To qualify you must:
- Be at least 62 years old. In the case of a couple or co-owners, both must be 62 if they want their names to be on title of the home.
- Be a homeowner with enough equity in the home.
- Seniors may qualify even if they have an outstanding balance on a mortgage.
- Single-family homes and qualified condominiums, townhouses, manufactured homes, and 2 to 4-family owner occupied residences are eligible.
- Only available for homes occupied by owners as a principal residence.
- Can own up to 4 dwellings.
2. Are Reverse Mortgages legitimate?
- Yes. They are regulated by the federal government and are safer than most traditional mortgages.
3. If I get a Reverse Mortgage that means the government holds title to my home?
- False. Title does not get transferred into the governments name. Throughout the life of the loan, you own your home.
4. If I decide to sell my home, will the lender make me pay back the loan and will they collect a portion of the appreciation?
- False. The lender will only collect the amount that is due to them. If the loan balance is larger than the home value, the lender will only collect the proceeds from the sale. You can never owe more than what your home is worth.
5. What do I have to pay to get one?
- In most cases there are no out of pocket costs. All costs deferred and only due when the homeowner moves out permanently, sells the home or passes away.
6. What are my payment options?
You decide how to receive the money. In general, your payment options are:
- An upfront lump sum payment.
- Line of credit.
- Fixed monthly payments for as long as you remain in your home (or a predetermined, shorter period).
- A combination of lump sum, monthly income and line of credit.
7. Are they only for desperate seniors, or for the “House Rich, Cash Poor?”
- False. They are an excellent financial planning tool that has been used by homeowners from all walks of life to enhance their retirement years. While some have needed the cash more than others, the growing popularity of this product is evidence of its benefit in a wide array of financial circumstances.
8. Am I required to pay anything during the course of the loan?
- No. The flow of payments is reversed during the term - the lending institution pays you. However, you are responsible for keeping up payments for your homeowner’s insurance and property taxes, and to maintain the condition of your home.
9. What happens when my house gets passed to my heirs?
- Once your home is passed to your heirs, the program comes due. Your heirs may either pay the balance due and keep the home, or sell the home and use the proceeds to pay off the reverse mortgage. If they sell the home, they get to keep any excess sale proceeds.
10. Can I do a Reverse Mortgage if there already is a conventional mortgage on the home?
- Yes. Existing mortgages must be paid off at closing. The proceeds may be used for that purpose. This will eliminate any monthly mortgage payments.
11. Can I close one in a living trust?
- Yes. Generally this is acceptable. The complete trust documents will need to be copied and put in as part of the file.
12. Will a Reverse Mortgage affect my Social Security, Medicare or pension benefits?
- No. Proceeds do not affect these benefits.
13. Can I get one from anyone?
- No. Only federally approved lenders may offer HUD insured reverse mortgages.
Robert Jones has been a leader in the mortgage industry for over 15 years. He has worked at Sun American Mortgage for over 10 years and is passionate about the Reverse Mortgage program. He takes a genuine interest in his client's financial future and enjoys getting to know them personally. He has specialized in Reverse Mortgages and has a highly experienced staff.
Visit him on the web at http://www.ReverseSecure.com and find out how Robert can give you the personal attention you need to see if a Reverse Mortgage is right for you.
