Resources & FAQs
Resources
With so much information out there on Reverse Mortgages, we wanted to make further research easy for you. See below for a list of resources we have found extremely informative and helpful:
- Eye on Elder Issues by NAELA
- Home-Made Money by AARP
- Home-Made Money by AARP (Español)
- NRMLA Booklet on Reverse Mortgage FAQs
- Reverse Mortgage – An Instrument for Lifetime Financial Planning
- Reverse Mortgages can Help with Long-Term Care
- The NRMLA Guide to Aging in Place
- Use Your Home to Stay at Home by NCOA
- Using Reverse Mortgages for Health Care
FAQs
Do I have to own my home with no mortgage to qualify?
No, you can pay off your existing mortgage or equity loan with a Reverse Mortgage. Many people get a Reverse Mortgage for this reason: to get rid of their monthly payments permanently.
Will there be any tax liability once I close on my Reverse Mortgage?
No, currently the IRS treats monies received from a Reverse Mortgage as loan advances therefore not considered taxable income. For more specific information, consult a tax advisor.
Can I still qualify if my property is held in a Trust?
Yes, subject to the review of trust documents, most homes in Revocable Living Trusts can qualify for a Reverse Mortgage.
Will a Reverse Mortgage affect Social Security, Medicare or my Pension Benefits?
The proceeds from a Reverse Mortgage do not affect these benefits. For your specific situation you may want to contact your financial advisor.
If something happens to me will my spouse continue to receive the benefits of our Reverse Mortgage?
Yes, as long as you are joint borrowers on the Reverse Mortgage, and your spouse wants to remain in the home.
Are there costs associated in obtaining a Reverse Mortgage?
There will be the typical mortgage costs associated with obtaining your Reverse Mortgage, these include but are not limited to a Mortgage Insurance Premium for the FHA programs and a loan origination fee. All fees can be financed as part of the loan, meaning no out of pocket expenses to you.
If I get a Reverse Mortgage, can I sell my home at anytime?
Yes, if you decide to sell your home, the Reverse Mortgage is like any other loan and the outstanding balance must be paid off at closing. There are no restrictions preventing you from paying off your loan in full or by selling your home.
Can I still leave my home to the kids?
Yes, your home will always remain your home. You may leave it to whomever you wish. When you pass away, your heirs will have options for paying off the loan; including selling the home or refinancing the outstanding balance, among other options. After the debt is repaid, any remaining equity will go to your heirs.
Richard K. Bettinson | Phone: 1-760-200-2696 |
