Frequently Asked Questions

Below are some of our most frequently asked questions about reverse mortgages. If you have questions that are not answered here, please get in contact with us so we can provide you with answers.

There are many factors that play into the amount you will receive. These include the amount of home equity you already have, your age, the interest rate of the reverse mortgage, where your home is located, and more. You can use our reverse mortgage calculator or contact us to get an estimate.
No. You will never owe more money than the worth of your home. Reverse mortgages are non-recourse loans, which means the borrower or their family are not responsible for any payments beyond the worth of their house when the loan is due.

Getting a reverse mortgage is a big decision! We are dedicated to thoroughly informing you about the pros and cons of getting a reverse mortgage. You will also receive required HUD-approved counseling to further inform you about your decision.

If you have already paid a significant amount of your home mortgage, you can still qualify for a reverse mortgage. The money from the reverse mortgage will be used to pay off the rest of your existing mortgage.

Heirs have several options when the loan comes due. If they would like to keep the home, they must pay 95% of the property’s appraised worth. Heirs can also sell the home at 95% of its appraised value to pay off the loan. If the appraised value of the home is worth more than is owed by the borrower, the remaining balance must be paid off by either the home’s sale or by the heirs if they wish to keep the home. Extra proceeds are kept by the borrower’s beneficiaries. Additionally, because reverse mortgages are non-recourse loans, the heirs are never responsible for paying anything beyond the value of the property.

Costs and fees that come with getting a HECM include loan interest, closing costs, a mortgage insurance premium, and servicing fees. You can get more details here.
Living borrowers continue to receive all of the benefits of the reverse mortgage.
A reverse mortgage will not affect Social Security or Medicare. However, it will affect need-based programs such as Supplemental Security Income and Medicaid.
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