What’s a Reverse Mortgage?   Who’s Eligibile?   Uses of Reverse Mortgage Loans   Top Reverse Mortgage Concerns   Saying No to a Reverse Mortgage   Adult Children Involvement   Loan Approval Process   Annualized Growth Rate   Rates, Margins, Adjustments & Caps   Loan Payout Options   Types of Reverse Mortgages   Comparisons   Loan Closing Costs   FAQ   How Much Can You Borrow?

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 FAQ

CAN CHILDREN BE ON TITLE?

No. The only exception is if a child is 62 or older. Remember that generally the age of the youngest borrower is used to calculate the maximum loan. The younger the borrower….. the less the loan amount.

I LIVE WITH MY PARTNER BUT WE ARE NOT MARRIED. IS THIS A PROBLEM?

No. marriage is not part of the eligibility requirements.

WHAT IF I DIVORCE OR SEPARATE FROM MY SPOUSE OR PARTNER? WILL THE LOAN BECOME DUE?

No. The loan is due when the last or remaining person on title moves, sells the home, or passes away.

CAN MY HOME BE HELD IN A TRUST?

Generally yes. The trust documents have to be reviewed and approved by the lender.

CAN I HAVE AN EXISTING MORTGAGE?

A Reverse Mortgage is a means to payoff an existing mortgage, and to eliminate monthly mortgage payments. If for example, you wish to keep an existing mortgage, such as a home equity line, it would have to be subordinated to a Reverse Mortgage loan. In general, most lenders will not subordinate a loan to a reverse mortgage.

WHEN SHOULDN'T I GET A REVERSE MORTGAGE LOAN?

If, you don't need the money, or your intention is to remain in your home for only a short period of time.

HOW LONG DOES MY ESTATE HAVE TO PAY OFF A REVERSE MORTGAGE LOAN?

Generally six to 12 months.

ASSUMING THE VALUE OF MY HOME INCREASES, CAN I REFINANCE? CAN I REFINANCE FOR ANY REASON?

A borrower can refinance his/her Reverse Mortgage at any time.

WITH A REVERSE MORTGAGE LOAN, WILL I REDUCE MY CHILDREN'S INHERITANCE?

Generally yes. However, the need for income in most cases should outweigh this concern. Be aware that you could structure your Reverse Mortgage loan to preserve a set amount of inheritance, which might grow to be larger as your home appreciates over time.

CAN THE CLOSING COSTS BE A PART OF THE LOAN?

Yes. All costs can be financed with a Reverse Mortgage loan.

WILL THE MONEY I RECEIVE EVERY MONTH STOP BEFORE I MOVE OUT, SELL THE HOME, OR PASS AWAY?

No and Yes. If you've elected to receive a monthly annuity or payment for life, you'll receive a monthly check as long as you are alive and live in your home. If you move or sell, the payment will cease.

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