Reverse Mortgages: Frequently Asked Questions
1. Am I eligible for a Reverse Mortgage?
• To qualify for a reverse mortgage, you must:
• Be at least 62 years old. In the case of a couple or co-owners, both must be 62 if they want their names to be on title of the home.
• Be a homeowner with enough equity in the home.
• Seniors may qualify even if they have an outstanding balance on a mortgage.
• Single-family homes and qualified condominiums, townhouses, manufactured homes, and 2 to 4-family owner occupied residences are eligible.
• Reverse mortgages are available only for homes occupied by owners as a principal residence.
• Can own up to 4 dwellings.
2. Are Reverse Mortgages legitimate?
Yes. Reverse Mortgages are federally regulated and insured and are safer than most traditional mortgages.
3. If I get a Reverse Mortgage that means the government holds title to my home?
False. Title does not get transferred into the governments name. Throughout the life of the loan, you own your home.
4. If I decide to sell my home, will the lender make me pay back the loan and will they collect a portion of the appreciation?
False. The lender will only collect the amount that is due to them. If the loan balance is larger than the home value, the lender will only collect the proceeds from the sale. You can never owe more than what your home is worth.
5. What do I have to pay to get a Reverse Mortgage?
In most cases there are no out of pocket costs to get a Reverse Mortgage. All costs deferred and only due when the homeowner moves out permanently, sells the home or passes away.
6. What are my payment options?
You decide how to receive the money generated by a Reverse Mortgage. In general, your payment options are:
• An upfront lump sum payment.
• Line of credit.
• Fixed monthly payments for as long as you remain in your home (or a predetermined, shorter period).
• A combination of lump sum, monthly income and line of credit.
7. Are Reverse Mortgages only for desperate seniors, or for the “House Rich, Cash Poor?”
False. The Reverse Mortgage is an excellent financial planning tool that has been used by homeowners from all walks of life to enhance their retirement years. While some have needed the cash from a reverse mortgage more than others, the growing popularity of this product is evidence of its benefit in a wide array of financial circumstances.
8. Am I required to pay anything during the course of the Reverse Mortgage loan?
No. The flow of payments is reversed during the term of the Reverse Mortgage – the lending institution pays you. However, you are responsible for keeping up payments for your homeowner’s insurance and property taxes, and to maintain the condition of your home.
9. What happens when my house gets passed to my heirs?
Once your home is passed to your heirs, the Reverse Mortgage comes due. Your heirs may either pay the balance due on the reverse mortgage and keep the home, or sell the home and use the proceeds to pay off the reverse mortgage. If they sell the home, they get to keep any excess sale proceeds.
10. Can I do a Reverse Mortgage if there already is a conventional mortgage on the home?
Yes. Existing mortgages must be paid off at closing. The proceeds from the Reverse Mortgage may be used for that purpose. This will eliminate any monthly mortgage payments.
11. Can a Reverse Mortgage be closed in a living trust?
Yes. Generally this is acceptable. The complete trust documents will need to be copied and put in as part of the file.
12. Will a Reverse Mortgage affect my Social Security, Medicare or pension benefits?
No. Proceeds from a Reverse Mortgage do not affect these benefits.
13. Can I get a Reverse Mortgage from anyone?
No. Only federally approved lenders may offer HUD insured reverse mortgages. Rob Jones will close your Reverse Mortgages up to three times faster than the competition. Why not use a pioneer in the reverse mortgage profession, Sun American has over 20 years of Reverse Mortgage experience.
14. How do I get started?
Call Rob Jones at Sun American Mortgage. He will need your birth date, approximate value of your home and the amount of money remaining on your mortgage, if any.
Rob Jones has been a leader in the mortgage industry for over 15 years. He has worked at Sun American Mortgage for over 10 years and is passionate about the Reverse Mortgage program. He takes a genuine interest in his client’s financial future and enjoys getting to know them personally. He has specialized in Reverse Mortgages and has a highly experienced staff. Visit him on the web at http://www.ReverseSecure.com and find out how Rob can give you the personal attention you need to see if a Reverse Mortgage is right for you.
Catherine Austin Fitts talks about it in 2004. As President of Solari, Inc., Catherine is currently spearheading the Solari Circles Campaign to help make healthy local living economies the best investment worldwide. Catherine previously served as Managing Director and Member of the Board of Directors of the Wall Street investment bank, Dillon, Read & Co., Inc. She also served as Assistant Secretary of Housing/Federal Housing Commissioner at HUD in the first Bush Administration, and was the President and Founder of Hamilton Securities Group, Inc., a broker-dealer/investment bank and software developer that successfully completed billion of transactions and 0 billion of portfolio strategy prototyping the solari model. Catherine has a BA from the University of Pennsylvania, an MBA from The Wharton School, and studied Chinese at the Chinese University of Hong Kong. Catherine serves on the advisory board of Sanders Research Associates in London, and publishes the column Mapping the Real Deal in Scoop Media in New Zealand. www.financialsense.com www.scoop.co.nz
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