The definition of a reverse mortgage is simply a loan, and over the years it has continued to evolve into one of the safest mortgage products on the market today. Backed by federal insurance, thousands of seniors have already enjoyed the benefits of this financial tool.
What Is A Reverse Mortgage Loan?
Potential borrowers considering this option do have a lot of questions, and they want to be very clear about what a reverse mortgage for seniors is. While it is best to speak to one of our reverse mortgage professional about your specific situation, we have compile a list of Reverse Mortgage Frequently Asked Questions (FAQs):
What are my payment obligations with a reverse mortgage?
During your reverse mortgage loan period you are still responsible for:
- Your Home’s Insurance
- Upkeep and Maintenance Costs
- Property Taxes
How do I get funds distributed to me in a reverse mortgage loan?
Your reverse mortgage funds may be distributed a few different ways depending how you set it up.
- A Lump Sum Amount (either full or partial)
- A Line of Credit
- Monthly Distributions
- Mix & Match of the Above Methods
How does a reverse mortgage loan get repaid?
A reverse mortgage is repaid only after the last borrower leaves the residence or passes away. Usually the home with then be sold and the proceeds will be used to pay off the reverse mortgage loan.
If the home sells for more than the loan balance amount the proceeds will then be distributed to your heirs.
Will a reverse mortgage effect my other benefits (social security, medicare, etc)?
A reverse mortgage loan is simply another loan (such as a car payment) and not considered as income. So many of your benefits will be not be affected, however every situation so be considered by a professional.
We would be happy to work with you on your individual circumstances and needs.