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Top 10 Reverse Mortgage Questions |
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OHIO Reverse Mortgage Lender
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Common Misconceptions of a Reverse Mortgage
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The bank takes my home!.False. The homeowner retains ownership - full title in their name. No one can take the home away from the owner.
• I can owe more than my home is worth.
False. The homeowner can never owe more than the current value of the home at the time of sale.
• If I have poor credit or am in debt I cannot qualify for a Reverse Mortgage.
False. A Reverse Mortgage has no income, asset or credit qualifications. The only qualifications are that you must be at least 62 years of age, own and live in the home as your primary residence and have enough equity built up to qualify.
• My heirs have to pay off the home when I die.
Fact: You and your heirs are not personally responsible to pay anything back - only the home value does this. Your heirs have six months to settle your estate, and if there is not enough money left - HUD comes in and makes up the difference.
• There are no responsibilities with a Reverse Mortgage.
False. With a Reverse mortgage you are responsible for paying taxes and insurance as well as normal upkeep of the property. You DO NOT make any monthly mortgage payment as long as you remain in the property as your primary residence no matter how long you live.
How is Interest Charged?
Interest on a HECM Plan is adjustable and is tied to readily available market
indexes - the T Bill rate. The initial rate is determined at loan closing and
adjusts either monthly or annually. Interest changes do not affect the amount
of their monthly check. They are only charged interest on the Plan balance,
which consists of the cash they have received and the financed closing costs.
Interest rates are determined by HUD/FHA.
When Does the Reverse Mortgage Need to
be Repaid?
The HECM Plan becomes due and payable when the borrower (Plan Owner)
permanently leaves the home - whether they move, sell or pass away. HECM Plans
are typically repaid from the proceeds of the sale of the home, with any
remaining equity staying with the homeowner or their heirs. However, if the
heirs wish to keep the home they do so by refinancing. If a spouse passes
away, the surviving spouse continues to receive the full benefits of the HECM
Plan, with no repayment until they decide to permanently leave the home.
Do I Still Own My Home?
Absolutely! The Senior retains full ownership of their home
when they obtain a HECM Plan. As with any mortgage the lender has a loan
against the property. Since the home owner makes no monthly payments, the loan
balance increases over time. When the loan is repaid, the value of the home
repays the loan - the home owner and the heirs are not personally responsible
to repay anything. The loan balance is paid off,
which consists of the financed closing costs, the cash advanced from the HECM
Plan and the interest that has accrued. The remaining equity stays with the
homeowner (Plan Owner) or their heirs. If there is not enough equity, HUD
makes up the difference.
What is a Counseling
Certificate?
Before applying for a Home HECM Plan the Senior is required by HUD to meet
with a HUD approved independent HECM Plan counselor. This FREE session
is designed to help them decide whether a HECM Plan is right for them. The
counseling session can be done either in person or on the telephone, and it is
recommended family or trusted friends participate. At the end of the session
you receive a Certificate.
Want More Information?
If you would like more information and to see if you qualify, without any
obligation, please reply to this email by completing the form provided. (Your
information is kept secure and confidential and is not shared. If you wish to
contact us confidentially, please email us at
LenderBradford@Gmail.com or call me at (216)324-8113.
Quite a fantastic program we think - Check it out!
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