Reverse Mortgage FAQs


	Frequently Asked Questions

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	What makes a Reverse Mortgage safe? Your repayment amount can never exceed the value of your home when it is sold. Advance counseling with a HUD- approved independent counselor to ensure that you understand the Reverse Mortgage and your other options. Federal legislation mandates that you receive full advance disclosure of all costs and facts about Reverse Mortgages. A Good Faith Estimate is provided at the time of application. And we promise to give you an estimate that will be as close as possible to your final closing costs.
	What types of homes are eligible? Reverse mortgages can be done on single-family homes and qualified condominiums, townhouses, some manufactured homes, and 1-4 unit owner-occupied properties. At this time, co-ops are not eligible.
	How is the interest rate determined? On the FHA HECM, interest rates are adjusted either monthly or annually (the borrower chooses) and based on an index, either the U.S. Treasury Constant Maturity (CMT) or the LIBOR, published weekly by the Federal Reserve and in financial reports.
	Why should I use a Reverse Mortgage instead of a home equity loan for added income? With a traditional home equity line of credit or loan, you are required to make monthly payments and you must have sufficient income to even qualify for the loan. The Reverse Mortgage pays you instead, and is available regardless of your current income. It offers the security that comes from knowing you can’t be foreclosed or forced to sell your house because you missed some mortgage payments.
	Who is responsible to pay the taxes and insurance? It is your responsibility to keep the payment of tax obligations and property insurance current.
	Will cash from a Reverse Mortgage affect my benefits or taxes? The cash you receive from a Reverse Mortgage does not affect regular Social Security or Medicare benefits, and may not affect Medicaid or SSI if care is taken to spend any money in the month it is received. Reverse mortgage proceeds are considered to be a loan, and are not reportable as income.
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To Learn More,
Give Gail a Call.
Here are some of the best resources to help explain Reverse Mortgages. We believe education is so important in making your decision.

Gail Wempner 952-544-0821

Reverse Mortgage Resources

NRMLA National Reverse Mortgage Lenders Association

U.S. Department Of Housing And Urban Development



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