Remarkable Mortgage

Reverse Mortgage Frequently Asked Questions

FAQ

Answers To Frequently Asked Questions

Most of my people have used a Reverse Mortgage to “retire” or pay-off their current traditional mortgage. Many times you can retire your current mortgage and have money available, when you need it, in a Line of credit.

Yes, if you meet the following criteria”

  • If you have more equity available.
  • If your new loan can pass the “cost & benefit” test.
  • If your home has gone up in value and you have gone up in age.
  • The bottom line is a refinance needs to worth it to you. If we can determine that, then we can go forward.  

Yes, I think so and here’s why:

  • With a Reverse Mortgage you are not required to make a monthly (P & I) principal & interest payment 
  • With a Reverse Mortgage you are protected from wild fluctuations in the housing market.
  • With a Reverse Mortgage you have control over how much of your equity you want to use. 
  • With a Reverse Mortgage, if something bad happened and you incurred a large amount of debt, you would be able to safely stay in your home.

Yes. Here’s how that can work for you. If you have a Reverse Mortgage with a Line of Credit, the money in your credit line can sit and grow until you might need it.

Long Term Care Insurance might be priced beyond the means of a person. But that same person might have enough equity in their home that could be available in a Reverse Mortgage Line Of Credit that could be used to pay for care when and if they need it. 

-Article on Using Home Equity Loans To Pay For Eldercare

-Extensive article by an elder-lay attorney on using a Reverse Mortgage as a Long-Term care insurance alternative

The Reverse Mortgage money you take out of your home is your to do with as you wish.

  • Reverse Mortgage money is a loan and is not taxed as income. Link to IRS page on Reverse Mortgage and Taxes
  • Reverse Mortgage drawn from a Line Of Credit can be paid back.
  • Reverse Mortgage money in a Line Of Credit will grow at the rate of interest and mortgage insurance you are being charged. 
  • Reverse Mortgage money that you use will be paid back when you either sell your home, or refinance your home with another Reverse or with a traditional “forward” mortgage.

Yes, a Reverse Mortgage is just a loan. It is a unique loan, but like any other mortgage loan you own your home, and the lender has a lien on your property.

  • A Reverse Mortgage is unique because you aren’t required to make monthly principle and interest payments.
  • A Reverse Mortgage is a unique loan because you can never own more than your home is worth.
  • A Reverse Mortgage is a unique mortgage because you don’t personally own the money you use, your house owes the money.
  • A Reverse Mortgage is a unique loan because you can stay in your home as long as you wish. You simply need to keep your property taxes,  insurance and HOA paid and current

Talk personally with a licensed mortgage loan originator who specializes in Reverse Mortgages. A Reverse Mortgage is a highly specialized loan, my company, Remarkable Mortgage, only does Reverse Mortgages. 

  • Talk with a licensed person who has done at least 25 Reverse Mortgages.
  • Talk with a licensed person who will answer all of your questions to your personal satisfaction.
  • Talk with a licensed person who has the ability to negotiate the costs and fees involved in a Reverse Mortgage
  • See my No-Origination Charge Examples page.

Typically, No.  But you need to do some homework on the subject. If you are receiving SSDI, or Medicaid or a State specific program like Medical, talk with the agency that administrates your benefits. 

-Link to an Elder Law answers article 

-Using a Reverse Mortgage to pay for care. Place for Mom article