The mere mention of a Reverse Mortgage stirs up misconceptions and myths in the minds of many people – fears that the bank will own their home, that there is no way out of a Reverse Mortgage, or that the family will be “robbed” of their inheritance, to name a few. There have been significant changes to protect homeowners.
Some of the questions we answer every day are:
Q: Will I still own my home, and keep the equity in my home?
The answer is, Yes, you are not relinquishing title or ownership, and you are only using a portion of the equity to secure the loan.
Q: Is there a prepayment penalty?
No, you may repay the Reverse Mortgage at any time with cash, by refinancing, or by selling the property.
Q: If I pass away, can my spouse stay in the home without a mortgage payment until he/she passes away, or moves out of the home?
Yes, your spouse will never be forced to leave his/her home as long as the property taxes and homeowners insurance are paid, and the home is maintained.
Q: If I am 62 or older, and my spouse is under 62, are we disqualified due to her age?
No, only one borrower must be 62 or over.
The amount of money that will be available to you is determined by the appraised value of your home, the amount of equity in your home, and your age.
Find out more about your options and if a reverse mortgage makes sense for you. Call us at Silver Leaf Mortgage, 720-458-4036.