What is a Reverse Mortgage? See the page on our website titled Reverse Mortgages.

What are some of the reasons people have Reverse Mortgages?  The reasons are as varied as the people who have them, but some of the most common are: To payoff debt and thus free up income, To payoff an existing mortgage, To pay for a family member's education, To pay for healthcare, To use in any way that you see fit.

Will I have to pay taxes on the money I receive?  The money you receive is not considered income and is therefore tax free but we suggest you always consult with your tax advisor.

Will I lose title to my house?  You remain the owner of your home.  Remember when you had a standard mortgage on your home?  You paid the taxes and the insurance and the utilities and kept your home in good repair, the same holds true with a Reverse Mortgage.

When is the loan repaid?  Some of the situations would be: When the last surviving borrower passes away, when the last surviving borrower has not lived in the house for 12 months, if you decide to sell your home, if you failed to keep your home in a reasonable state of repair, if you fail to pay the home's real estate taxes or insurance.

At the time of repayment, what will be owed?  Principal, interest, service fees, closing costs etc. are paid by either the proceeds from the selling of your home or may be paid by any other source such as other assets from your estate.

Do I need a certain income to qualify for a Reverse Mortgage?  There are no income qualifications to qualify for as there are no monthly payments made by you.

I understand you will check my credit.  What if my credit is not as good as I'd like due to difficulties meeting certain obligations on a fixed income?  You have just mentioned with your question one of the varied reasons people might need a Reverse Mortgage.  Your credit is checked in order to determine whether there are any issues which would affect the title to your home not to qualify you as in a standard mortgage.

Do we have to take the proceeds in a lump sum?  Receiving the proceeds in a lump sum is just one of the options available to you.  You might take the proceeds for life as long as the last surviving borrower permanently lives in the home, for a set period of time, as a line of credit, as a lump sum or a combination of the options.

How much may we receive?  The factors are many and depend in part on: where you live, what your home is worth, what you owe on your home, your age, the Reverse Mortgage you choose, current interest rates.  The professional you work with will explain in more detail all the factors.

Why is it necessary that I receive counseling?  Meeting with an independent counselor is a federal requirement that is meant to protect you in part from making an uninformed decision.  The counseling received is specific to the Reverse Mortgage you are considering and will cover the positives, the negatives and the alternatives as well as costs.

Speaking of alternatives, what are some other options I might have?  If you have the ability to repay you might take out a home equity loan.  But often debt is the very reason people want a Reverse Mortgage.  Another option is to consider selling your home and downsizing or moving in with a relative.  After reviewing some of these options you might decide that your home is where you want to stay and perhaps a Reverse Mortgage is right for you.

Are these all the questions I should consider?  These are only some of the frequently asked questions, you no doubt will have more or unique questions.  Perhaps a trusted advisor will have more.  In any case we hope that you will give us a call so that we might help you discover if a Reverse Mortgage is right for you!