BackUnderstanding Reverse Mortgages
Article submitted by Universal Lending Corporation. Universal Lending has been in the business of Reverse Mortgages for more than 25 years. To get a list of approved counselors, call: Paulette Wisch at 303-759-7354 or Doni Dolfinger at 303-791-4786.
What is a reverse mortgage?
- It is a loan against your home that does not have to be repaid as long as you live in your home.
What is so unique about this program?
- Instead of making payments, you receive them.
Will this loan affect my Social Security or Medicare?
- No, absolutely not.
Will I have to pay income tax on the money I receive?
- No. The money is considered proceeds of a loan and not taxable.
How much do I qualify for?
- It depends on your age(s), the valueof your home and the interest rate.
Will I have to pay an application fee?
- Some lenders charge a fee some do not – be sure to ask.
When is the loan due?
- The loan is due when you and your spouse no longer live in the home as your primary residence.
Is this program safe?
- Yes, all reverse mortgages are non recourse loans – you or your heirs will not be personally responsible for the loan.
Do I have to own my home free and clear?
- No. Even if you have an existing loan you may qualify.
Who will own my home if I get a reverse mortgage?
- You remain the owner.
Can I sell whenever I want?
- Yes. You or your heirs keep whatever equity is left after the home is sold.
Are there restrictions on how I use the funds?
- No – It’s your money – you decide.
Should I shop for the lowest interest rate?
- No. All reverse mortgage lenders must use a rate established by the program.
Is it hard to qualify?
- No. You and your spouse must be 62+, live in the home, and have a certain amount of home equity.
How can I be sure it is right for me?
- A meeting with a HUD approved housing agency is required. They will sit down with you to explain this program from an impartial, third party prospective.