NO: You always retain full ownership of the home. The lender will simply add a lien on the property, just as a typical conventional mortgage would be.
YES: Unlike a Conventional mortgage, you don't have to make any monthly payments to repay the mortgage, thus freeing up money in your monthly budget.
YES: Because Reverse Mortgages are backed by the U.S. Government, you can never end up owing more than the value of your home, even if the housing market declines.
YES: As a part of the recent stimulus package, the maximum loan limit has increased up to $679,650, which means you can borrow more of the equity in your home! (This is currently only in effect on a temporary basis, so act quickly to take advantage of the increased limits before it is too late).
NO: The Reverse Mortgage is repaid by selling the house once it is no longer your primary residence. Because it is a Government backed loan, your heirs are protected from being personally liable for the loan, no matter how much you owe.
NO: If your home is valued at more than your current Reverse Mortgage limit, you may be able to get more money by refinancing your Reverse Mortgage, due to the increased loan limits. Call to see if refinancing would be beneficial for you.
YES: Reverse Mortgages are specifically designed for seniors and therefore the minimum age is 62.
NO: Because Reverse Mortgages are secured by the equity in your home, income and credit are not part of the qualification process. It is solely determined on your age, the value/equity in your home & the interest rate. Therefore, you can be in the midst of a foreclosure and possibly still qualify for a Reverse Mortgage to save the home.
YES: It's YOUR money and you can do whatever you'd like with it.
NO: Depending on how much you owe on the home in comparison to it's value you may be able to obtain a Reverse Mortgage and use it to pay off your existing mortgage therefore eliminating the existing monthly payments and freeing up money in your monthly budget.
NO: Reverse Mortgages are designed to enable people to live in their home the rest of their lives where they are most comfortable. There is no time limit to repay the loan as long as it continues to be your principle primary residence.
NO: Just like any mortgage there are closing costs involved in obtaining a Reverse Mortgage. Typically closing costs on a Reverse Mortgage are higher than a standard Conventional mortgage, however generally 100% of the costs can be funded in the loan so there is no out of pocket expense for you. A Reverse Mortgage is not right for everyone. I'd be happy to review your individual situation with you to better determine if it is right for you. It doesn't hurt to ask.
YES: I am here to help you get the most of your Reverse Mortgage so that you can enjoy your golden years to their fullest extent. I have been involved in the Reverse Mortgage industry for over 10 years. I am State Certified, local in the Traverse City community, and someone you can trust. I'd be happy to answer any questions or concerns that you may have.
Provided by Lisa Haggai Certified Reverse Mortgage Specialist (231) 218-0307