REVERSE MORTGAGES

Commonly Asked Questions about Reverse Mortgages

Q. What is a Reverse Mortgage?
A. It is a loan that lets homeowners who are 62 or older tap into the equity of their home to generate tax-free cash without having to sell the home, give up title or take on new monthly mortgage payments.

Q. How Do Reverse Mortgages Work?
A. Borrowers can choose to receive the reverse mortgage funds as a lump sum, monthly income (for life), as a line of credit, or as a combination of these.

Q. How Much Money Can I Receive?
A. The amount of money you receive is dependent upon several factors: your age, the value of your home, current interest rates, & the specific plan you choose. We can help you best determine your needs. In general, the older you are and the higher your home's appraised value, the more money you will receive.

Q. When Do I Make Payments?
A. Borrowers make NO payments on their reverse mortgage as long as you still live in your house. The loan becomes repayable when the last surviving borrower sells the home, moves out or passes away.

Q. What Can I Use My Money For?
A. Anything, such as: home repairs, pay off existing debt, healthcare, medical bills, taxes, pay off existing mortgage, car repairs, donate money to a charity. There are no restrictions on how you use your money.

Q. What about My Heirs - Do They Get Any Money?
A. Your heirs have choices - they can repay the loan& keep the house, or sell the home, repay the loan, & inherit the difference.

Q. Will a Reverse Mortgage Affect My Medicare or Social Security?
A. No.

Q. Can I Ever Owe More Than the Value of My House?
A. No. Even if you live to be 120, and even if when you die or sell your home, the real estate market is at an all-time low, you still cannot owe one penny more than what your home sells for. Bankers call this a "non-recourse loan", meaning that your reverse mortgage can never leave your heirs in debt.

Q. Who really Owns My Home?
A. You Do! A reverse mortgage is a lien just like a traditional mortgage. Repayment is required when the last surviving borrower sells the house, moves out or passes away.

Q. Is the Money Taxable?
A. No, all reverse mortgage money is TAX-FREE because it is a loan.

Q. What are the Income Qualifications?
A. There are none. In fact, many seniors use a reverse mortgage to quit working.

Q. What are the Costs?
A. Costs vary form one program to another. That's why we offer a variety of programs to meet various needs. Most reverse mortgages, however, have costs similar to traditional mortgages such as interest charges, origination fees, closing costs, and insurance.

Q. Who Should I Look to for Advice?
A. Decide who you trust, then discuss your intentions with them. It may be your attorney, a financial advisor, AARP, a family member or close friend. We want you to feel comfortable in your decision.

Q. How Do I Get Started?
A. We will be happy to meet with you at your convenience to discuss your needs. We find that the first meeting with a prospective client takes about an hour to gather the facts and get to know one another. It will be an hour well spent.