A. A reverse mortgage is a special type of loan, which enables you to take equity from your home in the form of a lump sum in cash, monthly payments to you for up to the rest of your life or from a line of credit. Or you may have a combination of these payout methods. The money you receive is "tax free". There are no income or credit qualifications and there are no monthly payments to make. The loan is not repaid until you permanently leave your home.

A. You retain full ownership of your home when you obtain a reverse mortgage. As with any mortgage, the lender has a lien against your property. Since you make no monthly payments, the loan balance increases over time. When the loan is repaid the borrower or their heirs pay off the loan balance which includes cash advanced to the borrower, closing costs financed and the interest that has accrued. The remaining equity stays with the homeowner or their heirs.

A. The amount you can borrow is based on a formula that factors in the age of the youngest borrower, the interest rate and the value and location of your property. We will help you in evaluating your options and calculate the maximum amount of money that will be available to you.

A. You must be age 62 or older and occupy the home as your primary residence. You must have enough equity in your home to pay off existing liens on your home with part of the proceeds from the Reverse Mortgage.

A. As with a forward mortgage, a reverse mortgage has origination and closing cost. These typically include a loan origination fee, appraisal, title insurance and recording fees. If you choose the government insured loan program there is also a FHA insurance premium. All of the costs may be financed in the loan.

A. The "tax free" income from a Reverse Mortgage will not affect your Social Security or Medicare benefits. Other senior benefits may be affected by income from a Reverse Mortgage. It is suggested that you contact your local Area Agency on Aging to determine if specific benefits may be affected.

A. You can spend the money anyway you want. You may use the money to pay monthly expenses, pay medical bills, pay off other debts, travel or improve your home. You may use the funds to purchase long term care insurance, purchase annuity insurance products or establish education trusts for your heirs. There are no restrictions on what you do with your money.

A. When you die, sell the home or move out of the home the reverse mortgage is due and payable. After paying off the reverse mortgage balance the balance of the equity goes to you or your heirs.

A. You can never owe more than the value of your home at the time of repayment even if the loan balance exceeds the value of your property.

A. Before the Reverse Mortgage application is completed you are required to meet with an independent, approved, Reverse Mortgage counselor. This free counseling session will help you determine whether a reverse mortgage is right for you. The session can be done either in person or on the telephone and family or trusted friends are encouraged to participate. At the end of the meeting you will receive a Certificate of Borrower Counseling.

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