5 Biggest Reverse Mortgage Questions
5 Biggest Reverse Mortgage Questions
5 Biggest Reverse Mortgage QuestionsRedwood Financial Services wants to make sure you have all the facts, so you can make an informed and educated decision. The five most common questions are listed below so you can start understanding the reverse mortgage loan.
1. Can I do a reverse mortgage if I owe nothing on my home?
This may sound obvious, but absolutely. This allows for more available cash to take care of any non mortgage obligations you may have.
In the event your home is not paid off, you still could qualify for a reverse mortgage. Your mortgage will have to be paid off first (with the reverse mortgage) then any remaining proceeds can be taken as a line of credit, monthly income, or a lump sum.
2. Do I qualify if I am behind on my taxes?
Definitely. It is one of the best reasons to to do a reverse mortgage. It gets the tax man off your back and takes some pressure off of you. Oregon will allow seniors to defer their property taxes, so consider that option to make a little room in your budget.
3. Will the bank own my home?
The title is used for collateral, but you retain all ownership rights. this include refinancing and or selling. The equity left after the sale is always yours or your heirs.
4. Do reverse mortgages allow me to purchase a home?
In January of 2009, there was a program introduced to allow a purchase of a home with a reverse mortgage.
5. What if I use up all my equity?
When considering property appreciation and the low rates of a reverse mortgage, it takes quite a while to "use up" your equity. On an average it will take 20-30 years to go through it. In the event you actually use up all the equity in your home, you will never be forced to move. You're protected with a place to live for the rest of your life.