Q. Reverse Mortgages - What are they?
A. A Reverse Mortgage is a loan that enables homeowners 62 years of age and older to convert part of their home equity into tax-free income. This is all done without having to sell their home or give up title. Another very exciting factor is that there are NO MONTHLY MORTGAGE PAYMENTS to pay!
Q. Is a Reverse Mortgage different than a home equity loan?
A. Yes and No. Both an equity loan and a Reverse Mortgage use the equity you have built up in your home to provide you with readily available cash. They are different in this way: With a home equity loan you must commit to making regular monthly payments. These payments include both principle AND interest. On the other hand, with a Reverse Mortgage you have absolutely no monthly payments to make for as long as you stay in the home. So not only do you not have any monthly payment obligations, but you do not pay interest either.
Q. Would personal income influence my ability to get a Reverse Mortgage?
A. No it does not. There are no income qualifications for these programs.
Q. Does the mortgage lender own my home?
A. Absolutely not! You, the borrower, retain title - ownership - to the property.
As the homeowner, you would simply be responsible for the typical things like property taxes, insurance, utilities, home maintenance, et.
Q. Can I refinance a Reverse Mortgage, as I would be able to do with a traditional home mortgage?
A. Absolutely you can refinance. Limits on Reverse Mortgages have been recently increased and you may qualify for MORE MONEY!
Q. Is it possible for my loan balance to become greater than the value of my home?
A. No your loan value cannot become more than the value of your home.
Q. Can a Reverse Mortgage lender take my home away if I outlive the loan?
A. No the lender cannot take your home away. The loan does not have to be repaid at this time either.
Q. Are there any limits on how I use the money I receive from a Reverse Mortgage?
A. It's your money and nobody can tell you what to use it for. Imagine what you would use your money for.
Q. Are all Reverse Mortgages the same?
A. No, not all Reverse Mortgages are the same:
There are Government Insured Reverse Mortgages and Private Reverse Mortgages. Government Insured Reverse Mortgages were created and are regulated by the Federal Government. This allows homeowners protection from outrageous fees as well knowing their benefits are Government Insured. Private Reverse Mortgages do not offer these safeguards, however for some homeowners they may be a better program. JP will work diligently to determine which program best fits your needs.
Q. How much cash will I have to come up with to cover origination fees and other closing costs?
A. A great benefit of the Reverse Mortgage programs offered by Jay Paul is that the money that you receive from the home's equity can be used to pay for the origination fees. And the fees are set by the US Government to protect you from overcharging.
