Get the Facts! Reverse Mortgage FAQs
By myfirstcho6600809, Nov 26 2018 09:13PM
Q: Does the lender own my home?
No! During the life of the loan, YOU retain title and ownership just like with a conventional mortgage. You can sell your home at any time, pay off the loan at any time and, should you want to make payments, you can do that, too, at any time. The loan will not be due as long as you continue to meet the loan obligations.
Q: Do I have to pay taxes on the cash payments I receive?
No! The cash that you receive from a reverse mortgage is tax free. Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off, in part or whole.
Q: How does this affect my estate/my heirs?
When the home is sold or no longer used as a primary residence, the balance of the mortgage, including interest and other finance charges, must be repaid. Because of the FHA insurance in a reverse mortgage loan, you can never owe more than the value of your home, regardless of how much you borrow. If your home’s value is higher than the loan balance at the time of your repayment, you or your heirs keep the remaining equity. No debt is passed along to your estate or heirs.
Still have questions? No problem!
We are committed to providing you with quality mortgage solutions for your present situations, as well as your future goals.