Reverse Mortgage FAQ Gresham Oregon
Q. Do I still personally own my property? Who’s going to be in title to my house?
A. You keep complete ownership of your house. The title of your house always is still in your name not in the name of the mortgage lender.
Q. Could title be held in the name of my trust rather then my name?
A. Absolutely yes, if it is revocable and it complies with HUD’s guidelines.
Q. Do I have to live in my home?
A. Yes. Having said that, if you must be in the hospital and transferred into a health center, you could be absent from your house up to 12 months.
Q. What happens when I die? Could the mortgage company take my house?
A. Nope. When you have died, your heirs can sell the home and pay back the loan or they can re-finance the debt and retain your home. All remaining home equity straight back to the home owners or their eOregon.
Q. When would the home loan be paid back?
A. Once the last living borrower passes away, sells the property, or permanently moves out of the house.
Q. Will there ever be any prepayment penalty?
A. Nope. You may make a full or partial payment at any time with no penalty fee.
Q. Who pays my property taxes and insurance?
A. You have to pay real eOregon property taxes and insurance.
Q. What if the mortgage balance becomes higher than the value of my property?
A. A reverse mortgage is a “non recourse” mortgage loan. You can’t ever have to pay greater than the appraised value of your property at the time of settlement even when the home loan amount is higher than the appraisal value of your property.
Q. Can the cash out of the reverse mortgage affect my Social Security or Medicare?
A. No, it won’t affect Social Security and Medicare insurance. It’s recommended that you contact your local agencies and tax adviser for your specific situation.
Q. What kinds of reverse home loans are available?
A. Federally-insured reverse mortgage loans. The most common reverse mortgage (and extremely controlled) is the federally-insured Home Equity Conversion Mortgage (HECM). Over 90% of all reverse mortgages are HECMs.
Proprietary reverse mortgages. These kinds of reverse house loans are supported by the companies that develop them. They have unique benefits and they are used for higher valued properties with virtually no limit on property value or even dollar value of the home loan.
Q. What’s the role of the counseling agency? Is it really important?
A. 3rd party counseling is important for all reverse home loans. This mandatory counseling provides you reverse mortgage details from a disinterested third party. The objective of the counseling is to ensure that the homeowner(s) understand the reverse mortgage program and figure out if additional options are available.
Q. Do I qualify for a reverse mortgage?
A. Every homeowners on the property title are required to be a minimum of 62, or older, own a home with home equity and occupy the home as the principal residence.
Q. What amount of money could I receive from a reverse mortgage loan?
A. The exact amount accessible to you is dependant on a formula which factors in: program type, age of the youngest borrower, appraised value of your residence, interest rates, county your house is located in, plus the balance of any liens against your home. We can aid you in reviewing the options and determine the maximum amount of loan proceeds which are accessible.
Q. How much would it cost to get a reverse mortgage?
A. As with a forward home mortgage, you need to pay an origination fee as well as ordinary closing costs. If you choose a federally-insured Home Equity Conversion Mortgage (HECM-pronounced “heck-um”) you will pay a Federal housing administration insurance premium. Just about all fees can be lumped into the reverse mortgage which means you do not have any up front costs.
Q. How can I be given my loan proceeds?
A. With the majority of reverse home mortgages you could have several payment solutions to suit your needs.
- All at once (lump sum)
- Get monthly payments for a fixed period of time
- Be given monthly installments for as long as you are living in the house (tenure)
- Line of Credit to be drawn on at your discretion
- Or a combination of the options