Reverse Mortgage Frequently Asked Questions
What Is a Reverse Mortgage?
The amount available may depend on factors such as the homeowner’s age, home value, existing mortgage balance, interest rates, and the specific reverse mortgage program.
Can I Get a Reverse Mortgage If I Still Have a Mortgage?
If you qualify, the existing mortgage may generally need to be paid off using the reverse mortgage proceeds. Your available proceeds and overall financial situation will determine whether this is a suitable option.
Who Can Qualify for a Reverse Mortgage?
A consultation can help determine whether your circumstances may fit a reverse mortgage program and what options may be available.
Do I Still Own My Home With a Reverse Mortgage?
You generally retain ownership of the property while the reverse mortgage remains in place. You must continue meeting the loan requirements, including keeping the property in good condition and staying current on property taxes and homeowners insurance.
Can I Use Reverse Mortgage Funds for Any Purpose?
The best use of the funds depends on your individual financial goals and circumstances.
Does a Reverse Mortgage Affect Social Security or Medicare?
If you receive Medicaid, Supplemental Security Income, or other needs based benefits, it is important to understand the potential impact of available funds and discuss your situation with an appropriate financial or benefits professional.
Can My Spouse Stay in the Home?
If you are married and considering a reverse mortgage, it is important to discuss your spouse’s status and potential protections before proceeding.
Does a Reverse Mortgage Affect My Credit?
A reverse mortgage consultation can help you understand the potential financial considerations before applying.
Is a Reverse Mortgage a Good Idea?
It may be worth considering if you want to access home equity, remain in your home, manage an existing mortgage, or supplement your retirement finances. The right decision depends on your goals, financial situation, home equity, and long term plans.
How Old Do You Have to Be for a Reverse Mortgage?
Other reverse mortgage programs may have different eligibility requirements.
How Much Money Can I Get From a Reverse Mortgage?
A reverse mortgage consultation can provide a more personalized assessment based on your home and financial situation.
How Does a Reverse Mortgage Work?
The homeowner generally remains responsible for maintaining the property, paying property taxes and homeowners insurance, and meeting the other requirements of the loan.
Do I Have to Make Monthly Mortgage Payments?
However, homeowners remain responsible for other property related expenses, such as property taxes, homeowners insurance, maintenance, and applicable homeowner association obligations.
What Happens to the Reverse Mortgage If I Move?
Before making a move, it is important to understand how relocating could affect your reverse mortgage.
What Happens to a Reverse Mortgage When the Homeowner Dies?
Eligible heirs or the estate may have options for satisfying the loan and determining what happens to the property. The specific process depends on the reverse mortgage program, the borrowers involved, and the circumstances of the estate.
What Costs Are Associated With a Reverse Mortgage?
The actual costs depend on the loan program and your individual circumstances. Understanding these costs before proceeding is an important part of evaluating whether a reverse mortgage is right for you.
Can I Sell My Home With a Reverse Mortgage?
When the home is sold, the reverse mortgage balance and other applicable obligations are typically addressed from the proceeds of the sale. Any remaining equity may belong to the homeowner or the homeowner’s estate, subject to the loan terms and other obligations.
What Are the Alternatives to a Reverse Mortgage?
Comparing your available options can help you determine which approach best fits your financial goals.
