FAQs
Question: "Will the bank will own my home?”
Answer: Absolutely not. This is the number one misconception associated with reverse mortgages. You continue to own your home and hold title, just as if you had a traditional mortgage.
Question: “Can I end up owing the bank more than my home is worth?”
Answer: No. The federally-insured reverse mortgage is a NON-RECOURSE loan. That means that you will never be obligated to pay the bank for any amount beyond the value of your home. The same is true for your heirs and for your estate – they will not be liable either.
Question: “Do I have to pay income taxes on the money I receive?"
Answer: No. The funds that you receive are the proceeds of a loan, so you will not be required to pay any income taxes on the money you receive.
Question: “Are reverse mortgages expensive? Will I need to pay a lot of closing costs?”
Answer: Compared with many other types of mortgages, a reverse mortgage is normally less costly for you. However before you move forward, you will see all your costs spelled out in black and white. So the best way to decide is to request a quote.
Question: "Does the bank determine how I can use the money?"
Answer: No. There are absolutely no restrictions whatsoever on how you use your reverse mortgage proceeds and the bank will never ask you to provide any accounting of your funds.
Question: “Will my surviving spouse will have to repay the loan when I pass?"
Answer: Not if your spouse is listed on the reverse mortgage. Therefore, it is advisable that both spouses be listed on the reverse mortgage. If your spouse is currently less than 62 years of age, there are a number of options available and we advise you to speak to our loan counselors about them.
Question: “How do I move forward?”
Answer: Contact us by phone or by e-mail and we will start the process without delay. Just remember that the reverse mortgage process always begins with credit counseling class – which can be done over the phone and at your convenience. We look forward to working with you!