Frequently Asked Questions

Does the mortgage company take the home away from you?

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.

Are there no monthly payments on A Reverse Mortgage?

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.

Are Reverse Mortgages backed by the U.S. Government?

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.

Was the maximum loan limit recently increased from $417,000 to $679,650?

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).

Will my Heirs be responsible for the debt?

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.

I already have a Reverse Mortgage so is it true that I can't benefit from the recently increased loan limit of $625,500?

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.

Do you have to be at least 62 years old to qualify for a Reverse Mortgage?

YES: Reverse Mortgages are specifically designed for seniors and therefore the minimum age is 62.

If you have bad credit or low income, does it mean you won't qualify for a Reverse Mortgage?

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.

Can you can use the Reverse Mortgage Funds to supplement your monthly income, travel or pay off an existing mortgage?

YES: It's YOUR money and you can do whatever you'd like with it.

If you currently owe money on your home, it is true you can't get a Reverse Mortgage?

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.

Do you have to repay the Reverse Mortgage in a predetermined number of years?

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.

Is there no cost to obtain a Reverse Mortgage?

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.

Can Lisa Haggai give you a free quote & answer any questions that you may have regarding Reverse Mortgages?

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

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The Reverse Mortgage Center

1015 Noteware Dr.
Traverse City, MI   49686

Just off 3 mile, North of Grand Traverse Academy & Vanderlip Rd.

Phone: 231-218-0307