• REVERSE MORTGAGE INFO
  • CO-OP REVERSE MORTGAGES!
  • HOW DO I QUALIFY?
  • FINANCIAL PLANNERS
  • REVERSE MORTGAGE MYTHS
  • WHAT ARE THE SAFEGUARDS?
  • REVERSE PROS AND CONS
  • FAQ -QUESTIONS PEOPLE ASK
  • IS IT RIGHT FOR ME?
  • NON-BORROWING SPOUSE
  • HECM LINE OF CREDIT
  • WHEN IS IT DUE?
  • JUMBO REVERSE MORTGAGES
  • HECM COUNSELING
  • REVERSE MORTGAGE STEPS
  • PURCHASE WITH REVERSE
  • KATHIE ADLER-ORIGINATOR
  • DOCUMENTS-UNDERWRITING
  • FIRST-TIME HOMEBUYERS
  • FINDING THE RIGHT LOAN
  • BANK STATEMENT LOANS
  • VA HOME LOANS
  • MANUFACTURED HOMES
  • BLEMISHED CREDIT
  • REMEMBER WHEN...
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    • REVERSE MORTGAGE INFO
    • CO-OP REVERSE MORTGAGES!
    • HOW DO I QUALIFY?
    • FINANCIAL PLANNERS
    • REVERSE MORTGAGE MYTHS
    • WHAT ARE THE SAFEGUARDS?
    • REVERSE PROS AND CONS
    • FAQ -QUESTIONS PEOPLE ASK
    • IS IT RIGHT FOR ME?
    • NON-BORROWING SPOUSE
    • HECM LINE OF CREDIT
    • WHEN IS IT DUE?
    • JUMBO REVERSE MORTGAGES
    • HECM COUNSELING
    • REVERSE MORTGAGE STEPS
    • PURCHASE WITH REVERSE
    • KATHIE ADLER-ORIGINATOR
    • DOCUMENTS-UNDERWRITING
    • FIRST-TIME HOMEBUYERS
    • FINDING THE RIGHT LOAN
    • BANK STATEMENT LOANS
    • VA HOME LOANS
    • MANUFACTURED HOMES
    • BLEMISHED CREDIT
    • REMEMBER WHEN...
  • REVERSE MORTGAGE INFO
  • CO-OP REVERSE MORTGAGES!
  • HOW DO I QUALIFY?
  • FINANCIAL PLANNERS
  • REVERSE MORTGAGE MYTHS
  • WHAT ARE THE SAFEGUARDS?
  • REVERSE PROS AND CONS
  • FAQ -QUESTIONS PEOPLE ASK
  • IS IT RIGHT FOR ME?
  • NON-BORROWING SPOUSE
  • HECM LINE OF CREDIT
  • WHEN IS IT DUE?
  • JUMBO REVERSE MORTGAGES
  • HECM COUNSELING
  • REVERSE MORTGAGE STEPS
  • PURCHASE WITH REVERSE
  • KATHIE ADLER-ORIGINATOR
  • DOCUMENTS-UNDERWRITING
  • FIRST-TIME HOMEBUYERS
  • FINDING THE RIGHT LOAN
  • BANK STATEMENT LOANS
  • VA HOME LOANS
  • MANUFACTURED HOMES
  • BLEMISHED CREDIT
  • REMEMBER WHEN...

Is a Reverse Mortgage Right for Me?

REVERSE MORTGAGES CHANGE LIVES

Your home is your nest egg, and your home's equity can often yield money for your retirement.  But let's face it, a reverse mortgage isn't for everyone. You ask the question, "Is a reverse mortgage right for me?"  The following questions can help you ascertain if a reverse mortgage will work for you:

•  Are you looking to stay in your home for the foreseeable future? 

•  Would downsizing to another home make life easier?

•  Would extra money enable you to do the things you want to do?

•  If there are two borrowers and one passes away, would you be able to pay your taxes, homeowner's insurance, and keep up the house in the condition it was when you took out the reverse mortgage?

•  Are there current medical or in-home care situations where a reverse mortgage could help?
•   Would you like to zero out your existing mortgage and pay no further monthly mortgage payments?


If you answered "Yes" to the above questions, perhaps a reverse mortgage might be an option. The following are additional questions borrowers ask about reverse mortgages:

If I choose a line of credit, does the bank pay me interest on the unused portion?

The lender does not pay interest on a reverse mortgage. However, the lender provides a Credit Line Growth rate on your unused line of credit.  This is why a reverse mortgage has a huge advantage over a Home Equity Loan (HELOC).With a HELOC, you have to refinance if you want more money.  The HECM has a growing line of credit based on the current interest on the loan plus an additional 1/2%.  Therefore, there could be more money to access in the future depending on what portion of the line you use. 


Would a "Living Trust" be eligible for a Reverse Mortgage? What about a Life Estate or Guardianship?
A homeowner who has put his or her home in a revocable living trust can take out a reverse mortgage. Documents must be reviewed by an underwriter. In some cases, even irrevocable trusts can be approved but rarely. 


Nothing in the HECM guidelines state you cannot use an irrevocable trust.  However, an irrevocable trust may not qualify for a reverse mortgage if one of the current beneficiaries does not meet HECM guidelines. All current beneficiaries of a trust must be HECM eligible for a HECM. In addition, irrevocable trusts can pose a problem when the trust does not allow invasion of the principle by the "settler", or the donor who created the trust. 


Life estates and reverse mortgages:   A life estate is a legal way to own property that is being passed on to you when the owner of a property dies. The original owner of the property executes a life estate deed and is called the life tenant while the future owners of the property are known as the remaindermen.  It's a type of joint home ownership which is often used to avoid probate upon the passing of the life tenant. Simply put, it makes the transition smoother as the home passes immediately to the heirs at death.  Even though the remaindermen have an ownership in the property, they cannot take possession of the property until the life tenant passes away. Additionally, in a life estate deed, it states all the occupants are allowed to use the property for the duration of their lives. 


But with a a life estate, as the life tenant, you cannot make changes to the house such as doing a refinance or taking out another mortgage without the approval of the remainderman. 


In the case of a reverse mortgage, the lender will review the life estate, and if acceptable, the loan can go forward. Note: The life tenant and the remaindermen must attend reverse mortgage counseling (HECM counseling), sign and date the counseling certificate, and at the closing will all sign the notice of right to cancel the transaction (3 day right of rescission) document as well as the mortgage (not the loan agreement).

A LITTLE KNOWLEDGE GOES A LONG WAY

Can a reverse mortgage be refinanced?

Yes, as long as there is enough equity to refinance and you qualify, you can refinance a reverse mortgage every 12 months. Interest rates going down, getting older, house values going up all determine whether or not there will be equity to do a reverse mortgage refinance.  There is a 5-5 rule that applies to HECM refinances. The increase in the Principal Limit of the loan must be equal to or more than five times the closing costs and proceeds equal to or more than 5% of what is being refinanced.  The new loan must be a benefit to the borrower and cannot take place earlier than 12 months from the time you did your first reverse mortgage.  


Can my reverser mortgage plan be changed after closing?

Yes. You can change from a line of credit to monthly payments or vice versa at any point in your reverse mortgage. You will have to sign forms changing the structure of your plan, but it can be accomplished. After all, it's your money to structure for yourself. There may be a small administrative fee.


Reverse Mortgages and Equity Loans - Similar, But Different - Although a  reverse mortgage  is a lot like an equity loan, there are some significant differences. (a) With a reverse mortgage, your credit rating is not a determining factor. 

(b) Unlike an equity loan you make no monthly mortgage payments.

(c) With an equity loan, you would have to refinance to increase your line of credit. With a  reverse mortgage, your unused line of credit increases year after year giving you access to more funds without the need to refinance.  


Questions? 888-843-9797 or 631-804-9044 

WHEN IS IT DUE? CLICK HERE

Not looking for a reverse mortgage? We have options!

  • Speak with your trusted advisors, family, those you trust regarding the Reverse Mortgage. If a Reverse Mortgage is not right for you, 
  • We do conventional loans, loans for first time homebuyers, reno loans, VA, FHA, and commercial, loans - and we do bank statement loans!
  • Types of properties: condos, co-ops (in NY state), horse property, mixed use properties, bank statement loans!  
  •  For info, call 888-843-9797 for more information or 631-804-9044

Contact kathie adler 888-843-9797 or 631-804-9044

Reverse mortgage or other mortgagE info

Or Call Kathie Adler, Reverse Mortgage Specialist and Mortgage Originator - 631-804-9044

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  • REVERSE MORTGAGE INFO
  • CO-OP REVERSE MORTGAGES!
  • HOW DO I QUALIFY?
  • FINANCIAL PLANNERS
  • REVERSE MORTGAGE MYTHS
  • WHAT ARE THE SAFEGUARDS?
  • REVERSE PROS AND CONS
  • FAQ -QUESTIONS PEOPLE ASK
  • IS IT RIGHT FOR ME?
  • NON-BORROWING SPOUSE
  • HECM LINE OF CREDIT
  • WHEN IS IT DUE?
  • JUMBO REVERSE MORTGAGES
  • HECM COUNSELING
  • REVERSE MORTGAGE STEPS
  • PURCHASE WITH REVERSE
  • KATHIE ADLER-ORIGINATOR
  • DOCUMENTS-UNDERWRITING
  • FIRST-TIME HOMEBUYERS
  • FINDING THE RIGHT LOAN
  • BANK STATEMENT LOANS
  • VA HOME LOANS
  • MANUFACTURED HOMES
  • BLEMISHED CREDIT
  • REMEMBER WHEN...

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