Reverse Mortgage Common Questions

If you have more questions on Reverse Mortgages please call us at 720-507-2200.

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No. Reverse mortgage borrowers retain ownership of their homes. They are not relinquishing title or ownership using a reverse mortgage, simply borrowing against the value of the home. Just like any other loan you must comply with loan terms.

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Like every other mortgage, a reverse mortgage becomes due and payable when the property is sold or whenever all borrowers leave the home. Borrowers must maintain home as their primary residence, pay all property taxes, homeowner's insurance, and comply with all other loan terms. Another great feature of this type of loan, is that there is absolutely no prepayment penalty or restriction as to the homeowner’s right to sell the property at any time.

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Reverse mortgage funds are considered loan proceeds and not income. In some circumstances, Medicaid and other income-based benefits may possibly be affected. Another plus side, is that the longer you wait to access Social Security benefits, the more you may receive.

A reverse mortgage can help delay accessing Social Security in order to boost your lifetime retirement income.

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This is not necessarily the case. When a reverse mortgage is repaid, the amount due is the total of the monies that have been advanced to or for the borrower (including paying off existing mortgages*), the sum of all cash disbursements to the borrower, and the up-front fees associated with the mortgage PLUS deferred and accumulated interest).

After the estate satisfies all obligations and the reverse mortgage loan is repaid, any remaining equity goes to the heirs.  And, since a reverse mortgage is non-recourse loan, no debt over and above the value of the property can ever be passed on the borrower’s heirs.

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•Patty and Bob just became empty nesters
•They want to right size in terms of the size of their home but not the quality of home or neighborhood.

•Their current home is worth $400k and they owe $200k, this leaves them with $200k for their new home

•Thanks to the ability to use a HECM to purchase a home; Patty and Bob can use all or a portion of the $200K plus a HECM loan to purchase a home that is a better fit for them while maintaining their equity position and eliminating mortgage payments.

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For your free brochure about reverse mortgages please call us at 720-506-1100 or request the information through the our website.