Are you considering a reverse mortgage, but don’t know where to start? Our reverse mortgage FAQ is a great guide to learn about the basics before taking the next steps.
A reverse mortgage is a loan just like a traditional mortgage, you remain as the owner of your home. The difference is how you pay it back. With a traditional mortgage, you have to make mandatory payments every month, while with a reverse mortgage, payments are optional.
No, there is a common misconception that banks take ownership of your home, but this is not true, you remain the owner. Home Equity Conversion Mortgage (HECM) is a Federal Housing Administration (FHA) insured loan. Although the product may not be for everyone, it is a popular choice for seniors looking to get more out of their retirement.
Yes. You remain the owner of your home and can choose to sell your home if you wish. The reverse mortgage loan will be paid off through the sale and you, as the owner, will keep the remaining proceeds.
Jumbo Reverse Mortgage is a reverse mortgage for high-value properties, typically for properties between $1M-5M. Some borrowers may qualify for both Jumbo and HECM programs.
Yes, just like a traditional mortgage, you can choose to refinance, pay off your mortgage, or sell your home at any time. There are no prepayment penalties.
No, as long as you maintain your homeowner obligations such as property taxes, insurance, and maintenance of your home, your reverse mortgage and its proceeds (cash, line of credit, monthly payments) can never be taken away from you, unlike other products such as Home Equity Line of Credit (HELOC).
No, proceeds received from a reverse mortgage are tax-free.
Yes! You can choose to make any payment, any time, any amount, with zero penalties.