Just The Facts 

FACT #1- Your Home is one of, if not your biggest asset.

FACT #2- A Reverse mortgage is not for everyone.  

Based on these two facts you need to be well informed to make an educated decision whether a reverse mortgage is right for you. We have compiled a list frequently asked questions along with the answers to give you a better understanding and to dispel some of the common myths of a reverse mortgage. 

Q: What is a reverse mortgage?

A: A reverse mortgage is a special type of loan that allows you to borrow against the equity that you've built up in your home. You must be at least age 62 to qualify. You can put the money toward anything you like, from paying medical bills to making home improvements.

Q: Will I/We to take our name off the deed and not have ownership?

A: No. A reverse mortgage is the same as a “traditional” mortgage in the fact that you stay on the deed the entire time. 

Q: Can the bank make me/us leave my/our house?

A: No. One of the reasons people get a reverse mortgage is so they can afford to stay in their home. The bank can never make you leave. 

Q: Do i/we male payments while in a reverse? When do I/we have to pay back the reverse mortgage to the bank?

A: You do not make any payments on the mortgage while you have a reverse. The bank gets paid back when you either a) Sell the home b) Go into an assisted living facility or c) When the inevitable happens- unfortunately we do not live forever.  

Q: Will I/we use up all the equity in my/our home? 

A: Firstly, what amount you borrow is completely up to you. Secondly, the MAXIMUM amount someone can initially borrow is approximately between 55%-75% of the value of their home depending on their age. Your reverse consultant will let you know the exact amount you can receive. 

Q: I/we have heard that the costs are high. Is this true?

A: The bulk of the cost is the mortgage insurance premium the government charges to ensure you will receive your benefits in case the bank defaults or goes out of business or you outlive the projected life expectancy the bank has projected. The cost of doing a reverse mortgage has recently gone down drastically in order to enable more people to be able to take advantage of the program. 

Q: Are there any income or credit qualifications needed to get a reverse?

A: No, you do not need any income to qualify and in fact you can theoretically be seriously past due on your mortgage and still qualify.