- What is the difference between a traditional mortgage and a reverse mortgage?
Answer: With a traditional mortgage, you must have sufficient income versus your debt ratio to qualify for the loan. This is because the bank must be able to verify that you will be able to make monthly payments. A reverse mortgage is different because it pays you, regardless of your current income.
- Do I have to sign the Deed to my house over to the bank?
Answer: No! A reverse mortgage is a lien against the property, just like a normal mortgage lien.
- Will I still have an estate that I can leave to my heirs?
Answer: If you sell your home, pass away or no longer use it as your primary residence, you or your estate must repay the monies received from the reverse mortgage, plus interest and any other agreed upon fees to the bank. The remaining equity in your home, if any, is yours or your heirs. The debt cannot pass on to your estate or heirs.
- Aren't Reverse Mortgages easier to foreclose on?
Answer: Heavens No! You are not making any payments, you are receiving them. Your only responsibilities here are to continue living in the home, keep up the property taxes, homeowner's insurance and homeowner's associations if they apply.
- How much can I borrow?
Answer: It is calculated by your age (older is better), the current interest rate and the appraised value of your home. (The loan amount must fall within the FHA mortgage limits for you area.)
For a quick estimate, Call 863-604-0169
