 Frequently Asked Questions
Am I Eligible for a Reverse Mortgage?
To
qualify for a reverse mortgage, you must:
· Be at least 62 years old. In the case of a couple or co-owners, both must be 62 if their names appear on the title to the
home.
· Own as your primary residence a single-family home, qualified
condominium, townhouse, manufactured home, or 1 to 4-family
owner-occupied property.
How Much Money Can I Get?
This depends on a few factors, including your age, the value of your
home, the amount of built-up home equity, and interest rates at the time
of origination. Other factors are the type of reverse mortgage product
and particular payment option you select.
How do I Receive Proceeds from my Reverse Mortgage?
You decide how to receive the money generated by a reverse
mortgage.
Your payment options are:
· An
upfront lump sum payment;
· Line
of credit;
· Fixed
monthly payments for as long as you remain in your home (or a predetermined, shorter period); or, if you
choose,
· A
combination of monthly income and line of credit.
Do I need to get an Appraisal on my home to get a reverse Mortgage?
Yes. Since the
value of your home is a factor that determines how much
money you can get from a reverse mortgage, an appraisal is
required. The cost of the appraisal can be financed.
Am I required to receive counseling before I get a Reverse Mortgage?
Yes. Counseling is a very important consumer protection required by law
for the government program and best practice by private lenders who have
created their own programs. You can seek face-to-face counseling from a
local HUD approved counseling agency, or by telephone from a national
counseling agency.
Who owns title to my home while a reverse mortgage is
outstanding-the bank or me?
You retain title to your home during the period when you have a
reverse mortgage, just the same as with a regular home purchase
mortgage.
Am I required to pay anything during the course of a reverse
mortgage loan?
No. The flow of payments is reversed during the term of the reverse
mortgage – the lender pays you.
However,
you are
responsible for keeping up payments on your homeowner’s
insurance and property taxes, and maintaining the condition
of your home.
What happens if I move out of my house after I get a reverse
mortgage?
You may live outside your home for up to 12 consecutive months before
the loan must be repaid. In general, a reverse mortgage comes due when
the borrower dies, permanently moves out, or sells the home.
What happens when my house gets passed to my heirs?
Once your home passes to your heirs, the reverse mortgage comes due.
Your heirs may either pay the balance due on the reverse mortgage and
keep the home, or sell the home and use the proceeds to pay off the
reverse mortgage. If they sell the home, they get to keep any excess
sales proceeds. However, if your heirs choose to keep the home, and pay
back the loan using private funds, they will be responsible for paying
the full balance, regardless of whether that amount exceeds the home’s
value.
Why
is it that Worldwide Capital Mortgage is one of the few companies on
Long Island that can arrange for a Reverse Mortgage?
There are
very few banks that offer reverse mortgage services, and we have
exclusive contracts with several. Many banks, like Chase,
Citibank, Wells Fargo, Capital One, TD Bank, Astoria Federal Savings,
and Bank of America do not offer reverse mortgages.
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