August 3, 2021
16 Years of the Common Questions People Have About Reverse Mortgages
By Alan Tenney
Mutual of Omaha Mortgage
Reverse Mortgage Specialist
What is a Reverse Mortgage?
It’s an FHA refinance program designed for people 62 and older where by you can utilize a portion of the equity in your home to do with as you please. You never have to make a payment.
Who Qualifies?
At least one person on title must be 62 or older, you must occupy the home as your primary residence, you must
meet some minimum credit and income qualifications, and continue to pay property taxes, homeowners’ insurance,
maintenance, and HOA fees.
How Much Money Could I Receive?
What you have access to is based on the age of the youngest borrower, value of the home, and current interest rates.
What Are My Payment Options?
There are 4 ways you can receive funds from your reverse mortgage. You can receive a lump sum, monthly payments, line of credit which grows over time, and a combination of the three.
What Costs are Involved?
Similar to those of a traditional mortgage. Costs are wrapped up into the loan and are regulated by FHA which may include origination, title insurance, FHA mortgage insurance and appraisal. Everyone will be provided a detailed good-faith estimate of the costs involved.
Will I Owe Tax on The Money I receive?
No. The proceeds received from a reverse mortgage are considered borrowed money and thus are not taxable
income by the IRS. Its your money and can use it any way you choose.
Will I continue to Own My Home?
Yes. This is the biggest myth people have. They think the bank owns the home and they DO NOT. You retain ownership if you meet the loan’s basic obligations.
Can I Qualify if I Already have a Mortgage?
YES. If there is sufficient equity in your home, your exiting mortgage will be paid off with the money you receive from your reverse mortgage. Now enjoy the financial freedom and additional cash flow since you do not have mortgage payments anymore.
In my 16 years of Reverse Mortgage experience, these have been the most asked questions. As I tell everyone, the education cost is free. You can contact me at 319-215-7972 or via email at atenney@mutualmortgage.com, to find out more.
Alan Tenney is HCEM for Purchase Specialist for Mutual of Omaha Mortgage. He can be reached at (319) 215-7972 or atenney@mutualmortgage.com,
Filed Under: Finance
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