Who should consider a reverse mortgage?
Someone who is looking for a financial solution to stay in their own home.
How is it determined how much money I will get?
It is determined by the age of the youngest person on title, appraised value of your home, and current interest rates. The minimum age is 55 for the jumbo reverse, 62 for the HECM reverse.
Do I have to take all the loan proceeds I qualify for at closing?
No. There is a line of credit option available.
Are the funds I receive taxable as income?
No. Since this is a loan, proceeds are not subject to income tax. Always consult your tax advisor.
Will the bank own my home?
No. The borrower(s) retains title and passes title to their beneficiaries.
Will my existing mortgage(s) be paid off?
Yes. All mortgages and eligible liens on your property will be paid off at closing.
Will I have to make mortgage payments?
No. Mortgage payments are not required and are 100% optional. If you choose to make payments the interest you pay will be tax deductible up to allowed limits, just like a regular mortgage.
What will I be responsible for?
You are responsible for staying current on property taxes, homeowner's insurance, HOA dues and assessments (if any), and general upkeep of your home.
What if the value of my home drops after I receive the loan, will I have to move out and pay off the loan?
No. You and your spouse may live in your home for as long as you both live regardless of future value.
Can I rent out my home?
Only if you are still living in the home. Once you are no longer living in the home the loan will be due and payable.
Will my children inherit my home when I die?
Yes. Your beneficiaries will inherit your home and the reverse mortgage loan will be due and payable.
What if there is not enough equity when they inherit the home to pay off the reverse mortgage?
The bank will accept proceeds from the sale of the home as payment in full - even if it is not enough to pay off the loan. Reverse mortgages are non-recourse loans.
What if they sell the house for more than the amount owed?
They keep the difference, just like they would with a regular mortgage loan.
Someone who is looking for a financial solution to stay in their own home.
How is it determined how much money I will get?
It is determined by the age of the youngest person on title, appraised value of your home, and current interest rates. The minimum age is 55 for the jumbo reverse, 62 for the HECM reverse.
Do I have to take all the loan proceeds I qualify for at closing?
No. There is a line of credit option available.
Are the funds I receive taxable as income?
No. Since this is a loan, proceeds are not subject to income tax. Always consult your tax advisor.
Will the bank own my home?
No. The borrower(s) retains title and passes title to their beneficiaries.
Will my existing mortgage(s) be paid off?
Yes. All mortgages and eligible liens on your property will be paid off at closing.
Will I have to make mortgage payments?
No. Mortgage payments are not required and are 100% optional. If you choose to make payments the interest you pay will be tax deductible up to allowed limits, just like a regular mortgage.
What will I be responsible for?
You are responsible for staying current on property taxes, homeowner's insurance, HOA dues and assessments (if any), and general upkeep of your home.
What if the value of my home drops after I receive the loan, will I have to move out and pay off the loan?
No. You and your spouse may live in your home for as long as you both live regardless of future value.
Can I rent out my home?
Only if you are still living in the home. Once you are no longer living in the home the loan will be due and payable.
Will my children inherit my home when I die?
Yes. Your beneficiaries will inherit your home and the reverse mortgage loan will be due and payable.
What if there is not enough equity when they inherit the home to pay off the reverse mortgage?
The bank will accept proceeds from the sale of the home as payment in full - even if it is not enough to pay off the loan. Reverse mortgages are non-recourse loans.
What if they sell the house for more than the amount owed?
They keep the difference, just like they would with a regular mortgage loan.