Reverse Mortgage Information – Frequently Asked Questions
Our clients usually have a lot of questions about how reverse mortgages work. We are always happy to provide the information they need to make the right decision. Following are some of the questions we hear most frequently.
As with any other major financial decision, be sure the lender you work with is reputable and trustworthy. Lincoln Chris, your Reverse Mortgage Specialist and advisor, can help you decide if a reverse mortgage loan is a good option for your situation.
I’ve heard that a reverse mortgage loan is a scam.
Just like most financial products, a reverse mortgage loan is highly regulated by the Federal Government. A Home Equity Conversion Mortgage (HECM) type reverse mortgage is even insured by the Federal Housing Administration (FHA). A reverse mortgage is a great way, as you enter your golden years, to make use of the equity you have in your home to:
- Pay off your current mortgage, so that you no longer need to make house payments
- Downsize to and purchase a smaller home
- Pay unexpected healthcare costs, make home improvements, afford a significant purchase, or have a rainy day fund
- Create a monthly paycheck (for the lifetime of the borrower, or for a specific amount of time)
However you decide to use the money from your reverse mortgage, the funds are tax-free. You will never need to make monthly payments on your home again (as long as you live in it and continue to pay property-related taxes, insurance and upkeep.)
Lincoln Chris, your Reverse Mortgage Specialist and advisor,can determine what the exact interest rates and associated fees will be, before your loan is finalized.
Whatever your heirs decide, if the sale of the home does not cover the entire loan balance, the FHA pays the difference, not your family members. In the meantime, you have enjoyed the benefit of the extra money and peace of mind that a reverse mortgage provides.
Do you need information about a reverse mortgage? Lincoln Chris – Reverse Mortgage Loan Officer will be happy to answer your questions with a complimentary consultation.
Call (415) 547-0116
Lincoln Chris, a local Bay Area resident, is available to take your call days, evenings, and weekends