NO: You continue to retain full ownership of the home. The lender will simply add a lien on the property, just as a typical conventional mortgage would be.
No: Unlike a Conventional mortgage, you don't have to make any monthly mortgage payments, thus freeing up money in your monthly budget. The mortgage is simply repaid once it is no longer your primary residence *you still have to pay and remain current on your property taxes and home insurance.
YES: The maximum loan limit has increased, which means you can borrow more of the equity in your home!
NO: The Reverse Mortgage is repaid by selling the house once it is no longer your primary residence. Because it is a HUD backed loan, your heirs are protected from being personally liable for the loan, no matter how much you owe, and any remaining equity still goes to you or your heirs.
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 and NO: Reverse Mortgages are specifically designed for seniors and therefore the minimum age for the HECM program is 62. However, there are also proprietary programs available that the minimum age is only 55.
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 its 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.
YES: 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 the majority of the costs can be rolled in with the loan, so there are very little out of pocket expenses.
YES: We are here to help you get the most of your Reverse Mortgage so that you can enjoy your golden years to their fullest extent. We have both been involved in the Reverse Mortgage industry for over 20+ years. We are state licensed, local in the Traverse City and Gaylord communities, and someone you can trust. We'd be happy to answer any questions or concerns that you may have and review your individual situation with you to better determine if a Reverse Mortgage is right for you. It doesn't hurt to ask!
