Lots of questions come our way about the specifics of a reverse mortgage. Redwood Financial Services is committed to giving you all the facts, so you can make your decision in an informed manner. Five of the more commonly asked questions are listed below to get you started on your quest for knowledge.
1. Can I do a reverse mortgage if I owe nothing on my home? This may sound obvious, but absolutely. This allows for more available cash to take care of any non mortgage obligations you may have.
In the event your home is not paid off, you still could qualify for a reverse mortgage. Your mortgage will have to be paid off first (with the reverse mortgage) then any remaining proceeds can be taken as a line of credit, monthly income, or a lump sum.
2. Can I do a reverse loan if I am behind on my taxes? This is a great reason to use a reverse mortgage. It will allow you to get caught up on any past due bills and get those creditors off your back. You could consider deferring your property taxes if you live in Oregon, after the loan closes.
3. Does the Bank take the title to my home? The title will be used as the collateral, but you don’t give up your home. It is still your home and you retain all rights to refinance or sell. any remaining equity always belongs to you or your heirs.
4. Can I purchase a home with a reverse mortgage? Starting January of 2009, there is a purchase program for reverse mortgages.
5. What if I use up all my equity? When considering property appreciation and the low rates of a reverse mortgage, it takes quite a while to “use up” your equity. On an average it will take 20-30 years to go through it. In the event you actually use up all the equity in your home, you will never be forced to move. You’re protected with a place to live for the rest of your life.
Stop by our website if you would like to see more frequently asked questions and answers about reverse mortgages. There is a large amount of educational information for free. Get informed before you make your decision.
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