Many seniors have questions about Reverse Mortgages:
1. How does a Reverse Mortgage work?
With a Reverse Mortgage, there are no monthly payments from you. As one of your most important assets, your home usually holds a certain amount of equity. Because of this equity, when the time comes someday for the loan to be repaid, the value of the home when sold is able to re-pay the loan. Any equity remaining after the home is sold belongs to your heirs. Meanwhile, you are able to live in the home for as long as you like without making payments.
2. Will I still own my home with a Reverse Mortgage?
Yes. With Reverse Mortgages, as long as you pay your taxes and insurance and otherwise comply with the loan terms, you will retain ownership of your home. The bank only takes title of your home if you do not meet these obligations. As long as you pay your taxes and insurance and otherwise comply with the loan terms, you remain the owner of the home and may live there for as long as you want. Any additional equity remaining after your loan is paid back belongs to your heirs.
3. Is a Reverse Mortgage a last resort option only and are the they only for desperate and poor seniors?
This is not at all the case. A Reverse Mortgage can be a very powerful and intelligent strategic financial planning tool. There is no better product more readily available to the senior population in terms of supplementing retirement income and managing retirement risks. However, the Reverse Mortgage should be evaluated and customized to your particular need. At FirstBank, we have dedicated professionals that will work with you and any of your financial advisors to obtain a Reverse Mortgage that is tailored to your overall retirement strategy.
4. How do I know if I qualify for a Reverse Mortgage and how much money can I receive?
The qualifications to get a Reverse Mortgage are simple:
- Be at least 62 years of age
- Own your home
- Occupy the home as your primary residence
The amount of money you can receive depends on the following:
- Your home's value (as appraised by an independent appraiser)
- Your age
- The interest rate on the Reverse Mortgage
- Any mortgage balance or liens against the property
Reverse Mortgage Action Steps "A Step-By-Step Guide"
1. Education - Speak with a qualified Reverse Mortgage professional to learn more about the Reverse Mortgage program, what options you may qualify for, and an analysis of your particular situation.
2. Counseling - HUD counseling is mandatory for all Reverse Mortgage borrowers. Once you understand your options and are ready to begin the application process you will call a certified Reverse mortgage counselor and schedule an appointment to receive your counseling. The purpose of the counseling is a protection mechanism for the borrowers to make sure that they have been truthfully educated about the Reverse Mortgage program and they understand what obligations they have to meet in order to keep their loan in good standing.
3. Application - FirstBank has Reverse Mortgage Specialists that will consult and guide you through the application process.
4. Appraisal - Upon receiving your HUD counseling certificate, and signed application, we will contact you to arrange for an appraisal of your property. Reverse Mortgages us a full FHA appraisal.
5. Processing - We (the lender) will begin to process your paperwork. This process includes teh appraisal, title report, and checking the balance of any liens/mortgages to be paid.
6. Underwriting - We forward your file to the load underwriter for final approval and will work to satisfy any requirements needed to close the loan.
7. Closing & Funding Dispersement - Once your loan has been approved by underwriting we will contact you to arrange for the signing of your final loan documents.
Contact our team of Reverse Mortgage Specialists and let us provide a complimentary consultation. We will explain in detail exactly how the loan works, see what options may be available to you, and answer any questions that you or your loved ones might have.
FirstBank Mortgage Hotline: (877) 865-6706.