4 Common questions

1. Does the bank own my home?
No. Reverse mortgage borrowers retain ownership of their homes. They are not relinquishing title or ownership using a reverse mortgage, but borrowing against the value of the home. A borrower may not lose their home under normal circumstances, as long as they comply with loan terms.

2. What are the different ways I can receive my reverse mortgagefunds?
Reverse mortgage funds can be disbursed in a number of ways: full or partial lump sum, as a line of credit, through monthly payments, or a combination of any of these.

3. What if the loan amount ends up more than the value of the home? Who will be responsible for the loan?
Reverse mortgages are non-recourse loans. What this means is that if somehow the loan balance ends up surpassing the value of the home, the lender cannot collect more than the value of the home. Under the HECM program, the difference between the loan balance and the home value is covered by the Federal Housing Administration’s (FHA) insurance fund.

4. Will a reverse mortgage affect my Social Security, Medicare or pension benefits?
No, these benefits will not be impacted. Reverse mortgage funds are considered loan proceeds and not income. However, Medicaid and other income-based benefits† may possibly be affected. What’s more, the longer
you wait to access Social Security benefits, the more you may receive. A reverse mortgage can help delay accessing Social Security in order to boost your lifetime retirement income.

Our Reverse Mortgage Professional can provide your exact fees and interest rates according to what it would be for your particular situation. Please give us a call today 408-269-4238 or 408-219-8359 for a no cost or obligation individualized consultation based on your particular situation.  We will provide all the information need for you and your family to make a informed  

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