Reverse Mortgages

A reverse mortgage is a home loan for seniors age 62 or older. Instead of making monthly mortgage payments like a traditional home loan, a reverse mortgage allows seniors to turn the equity in their home into tax-free cash. The exception is that borrowers do not have to make monthly payments. Reverse Mortgage are paid back in one lump sum when the borrower either moves, sells the home, or passes away.

Frequently Asked Questions about Reverse Mortgages

Does the bank own my home?

The borrower continues to retain title and ownership. The bank is not on the title.

Can I lose my home with a Reverse Mortgage?

Once you get a Reverse Mortgage, the Bank can only foreclose on your home if you do not pay your homeowners insurance, real estate taxes, any HOA fees, keep the home in good repair and is your primary residence you never have to make a mortgage payment.

Can I get a Reverse Mortgage even if I currently have a mortgage?

The first thing that will be paid off is your current mortgage and any other liens against the property. As long as you have enough equity to do this, a Reverse Mortgage would work for you.

Will a Reverse Mortgage cause me to pass debt on to my heirs?

A Reverse Mortgage is a non-recourse loan. There is mortgage insurance, which is a Federal requirement, which will pay off the difference from the value of your home to what you owe. No one comes out of a Reverse Mortgage owing more than the value of their home. If the value of the home is greater than what is owed, the heirs inherit the additional money after the loan is paid.

Will a Reverse Mortgage affect Social Security and Medicare?

Loan proceeds are non-taxable and will not affect your Social Security or Medicare benefits. Consult with your tax adviser to see how your monthly reverse mortgage advances may affect your eligibility for some other government programs.

Is a Reverse Mortgage risky?

Numerous safeguards have been built into the program, including mandatory HUD-approved counseling, payment guarantees, capped interest rates, advanced disclosures, a three-day rescission period and a non-resource limit.

Must a senior be in good health to qualify?

There is no income, asset, employment, credit score, or health requirements.

Is a Reverse Mortgage expensive?

A Reverse Mortgage will cost more than a traditional loan. The closing costs are HUD and FHA protected for the borrower. The Bank does not make money from these costs. All costs are to get the loan processed and to ultimately protect the borrower and their heirs, as well as the bank.

Learn more and apply for a Reverse Mortgage at our Reverse Mortgage Network site: www.ReverseandRelax.com