They are designed for homeowners 62 years
and older who occupy their home as a principal
residence.
Yes, but an existing mortgage must be paid
off first and at closing.
Mobile homes and cooperatives are not eligible.
Also, vacation homes and manufactured homes
not attached to a permanent foundation.
The Internal Revenue Service treats monies
from a reverse mortgage as a loan advance,
not income. Loan advances are typically
not taxable. We do advise you to consult
with your tax advisor for questions relating
to reverse mortgages and taxes.
Monies received from a reverse mortgage
do not affect these types of benefits. We
advise you to consult with you tax advisor
if you are unclear about these benefits.
The cost to get a reverse mortgage is similar
to many of the same costs associated with
a home purchase loan or refinance. The charges
that you can expect to see on your settlement
statement include an origination fee, appraisal
and inspection fees, title policy, mortgage
insurance and other normal closing costs.
All of these costs can be financed as part
of a reverse mortgage.
The borrower must repay any loan advances
received plus any interest accumulated.
You can never owe more than what your home
is worth because all reverse mortgages are
“non-recourse” loans.
No, the title to the property remains in
the name of the borrower. The loan must
be repaid when the last surviving borrower
dies, sells the home, or no longer lives
in the home as a principal residence.
The borrower is responsible for property
taxes, insurance, utilities, maintenance
and other expenses associated with owning
a home.
The loan must be repaid when the last surviving
borrower dies, sells the home, or no longer
lives in the home as a principal residence.
No, repayment to the lender can be accomplished
by refinancing the reverse mortgage or by
a conventional mortgage loan.
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