Reverse Mortgages.  Join the 70,000 seniors who changed their lives for the better by choosing this safe alternative.                                   

FREQUENTLY ASKED QUESTIONS:

Q. What is a reverse mortgage?

A. A reverse mortgage is a loan that allows senior homeowners to access the equity in their homes without having to meet lender’s traditional credit and income qualifying standards and without having to make monthly mortgage payments.

Q. What is the purpose of the reverse mortgage?

A. Reverse mortgages were specifically created to help senior homeowners more easily access the equity in their homes. Many seniors have accumulated large sums of equity in their home over a period of years but either no longer qualify for traditional bank financing or do not want another monthly obligation at this stage of their lives. This exciting program offers an alternative to traditional “home equity” financing.

Q. How can I qualify for a reverse mortgage?

A. All parties on title must be 62 years or older and reside in the property. Your home must be in reasonable repair. Your home does not have to be fully paid for but you usually must have 50% equity or more in your property. Based on your home value, your age(s) and current interest rates, a certain amount of money will be in available to you.

Q What can I do with the money?

A. The proceeds can be used for any purpose. You can pay off your existing mortgage and other debts, perform needed home improvements, travel, put your grandchildren through college, or simply have the money available as a safety net in the event of unexpected expenses.

Q. How can I receive the proceeds?

A.  You have a choice of payment options. You can receive fixed monthly payment for as long as you live in our home or for a predetermined period of time. You can receive a lump sum payment at closing. The most commonly chosen option is a line of credit which allows you to access our reverse mortgage proceeds as you need them. Finally, you can choose a combination of these plans.

Q. Will my reverse mortgage affect my Social Security or Medicare Benefits?

A. Money from a reverse mortgage is not considered earned income. Your proceeds are not taxable income and there is no affect on our Social Security or Medicare Benefits. You may want to consult your tax advisor.

Q. How safe are reverse mortgages?

A. The Home Equity Conversion Mortgage (HECM) is the most popular reverse mortgage, is insured by the Federal Housing Administration (FHA) and the concept of reverse mortgages is fully endorsed by the AARP. You continue to remain on title as the owner of your home. Also, as there are no monthly payments required, you can never be forced to leave your home due to falling behind on mortgage payments.

Q. What will happen to my home when I die?

A. Upon your passing, home ownership passes to our heirs and the loan becomes due and payable. Your heirs can retain the property and refinance the reverse mortgage with a new loan, or they can sell the home, pay off the balance and keep any remaining equity, per the terms of your will.

Q. What are my responsibilities once I get a reverse mortgage?

A. You must keep your homeowner’s insurance and property taxes current, you must maintain your home in good repair and continue to occupy the property as your primary residence.

Q. Where can I get more information?

A. If you have additional questions, or you would like to see if this program suits your situation, please go to Contact Us page to send us an email.

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