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Questions seniors ask about Reverse Mortgages.

What is a Reverse Mortgage?

A Reverse Mortgage is basically the OPPOSITE of a Traditional Mortgage and it enables Seniors, 62 and older, the opportunity to convert part of the equity in their homes into tax-free income - without having to sell the home, give up title, or take on a new monthly mortgage payment. In a Reverse Mortgage, Instead of making monthly payments to a Bank, the Bank makes payments to the Senior.

Are there Different Types of Reverse Mortgages?

Yes, however 90% of the Reverse Mortgages currently being originated are the HUD "Home Equity Conversion Mortgage" HECM, which is federally insured. Other Reverse Mortgages Include the Fannie Mae Home Keeper and other flexible Reverse Mortgages being offered by a variety of Independent Lenders.

How Do I Receive Cash?

You can receive your Cash in 4 ways: 1.) In a lump sum at closing, 2.) In Monthly Income payments for either a set term OR in Monthly Payments Guaranteed for Life 3.) In a Line of Credit that the you can access when needed, or 4.) In ANY combination of the above. The most popular option is the line of credit, which allows the you to to draw out Cash when you decide.

How Can the I Use the Money?

You can use the Cash for ANYTHING You Want! It can be used to Supplement Retirement Income, Make Home Improvements, Pay for Health Care, Pay off Existing Debts, Buy a New Car, Take a "Dream" Vacation, even to offset your costs by maintaining annual property taxes and insurance.

Who can Qualify for a Reverse Mortgage?

Simple, if you have at least 50% equity in your home or condo and you are a Senior who is a US Citizen at least 62 or older then you can typically qualify for a reverse mortgage. Unlike a Traditional Mortgage, there are NO Minimum Income Qualifications for obtaining a Reverse Mortgage. The Senior does NOT need Income, Assets, Employment, or Minimum Health Requirements to obtain their new Reverse Mortgage.

What If I already have an existing Mortgage?

You may qualify for a reverse mortgage even if there is an existing mortgage on the property. If there is a 1st or 2nd Mortgage on the Property, they BOTH must be paid off with the Reverse Mortgage. If there is not enough equity in the property to pay of the existing mortgages AND receive additional monthly income from the new Reverse Mortgage, it is often possible to pay off the existing mortgages AND eliminate the Monthly Mortgage Payments... a huge benefit for your budget.

How will a Reverse Mortgage Impact Social Security or Medicare Benefits?

A reverse mortgage does not affect regular Social Security or Medicare benefits. However, if you are on Medicaid, the reverse mortgage proceeds could impact Medicaid benefit eligibility.

When Do I Pay Back The Loan?

No monthly payments are due on a reverse mortgage.. EVER. The loan is repaid when you pass away or the last surviving spouse moves out of the property.

Hope this helped call us anytime for your questions. 816-363-3105

FirstTrust Financial,LLC 

Earning your trust one step at a time.