Testimonials

...Traveling to places such as the Caribben, Costa Rica, New Zealand, Australia, Fiji and many other places, I now don’t have to take a second thought when I am making a decision about my discretionary expenses.

I would recommend a Reverse Mortgage to anyone looking to have the peace of mind and freedoms associated with this great opporturnity.

-Frankin Purnell,
Pomona, California

FAQ

How do I know if a reverse mortgage is right for me or one of my family members?

The best way to find out if a reverse mortgage is right for you is to do sufficient research on the subject and ask around to see what has worked for other people. There are many valuable resources on the Internet and at The Reverse Mortgage Store; we hope that we will be able to answer any questions that you might have. Understanding even the most basic idea of how a loan works can be difficult for people and the reverse mortgage process can be complicated if you don’t have the right resources or the right people working for you. We care about our clients and do everything we can to help them get the reverse mortgage option that is right for them.

How much can I receive? What are the factors involved that make the decision?

There are a few factors that need to be taken into account when understanding how much money can be received through a reverse mortgage. Some of these factors include the value of the house and whether or not there are any existing liens or existing problems with the house, the age of the applicant, the current interest rate, how the loan will be taken out, and where the property is located.

What should I do before I make a decision about a reverse mortgage?

The best thing to do before making an important decision such as a reverse mortgage is to talk to people who are knowledgeable on the subject. At The Reverse Mortgage Store, Greg Shearer and his local and national association of colleagues help seniors everyday in making decisions about reverse mortgage have consulted and helped many individuals find out more about what their options are and what will work best for them. There are many myths and misconceptions about reverse mortgages and we hope that your questions can be answered here.

What are the terms of the reverse mortgage?

Reverse mortgage's differ from a regular mortgage because the balance is not paid back for the lifetime of the individual or surviving spouse, until the house is sold, or until the individual is no longer able to live independently and moves into assisted living or another such program. Subsequent to permanently leaving the house, individuals have up to a year to satisfy the outstanding balance and in many cases extensions above the year period can be granted. Most lenders are very cooperative in giving extensions and aiding individuals in paying back the outstanding balances. If the balance is paid back upon the sale of the house and the sale is for more than the remaining balance, the excess will go back to the individual or to their estate.

I receive money from the Government; can I still qualify for a reverse mortgage?

It is advisable to seek counsel for issues concerning government assistance, however in the larger scene of things, reverse mortgages do not usually impact much government assistance. Regular Social Security as well as Medicare are not affected by the use of a reverse mortgage, however services that are offered to people that fall into lower income brackets can be affected if they keep residual income received from the reverse mortgage without spending it. Please contact us to find out how your circumstances would be affected.

I still have a mortgage on my house, do I qualify?

The simple answer is yes, in most cases you can qualify, but to find out more details an assessment or consultation is suggested as a means to find out the exact information you desire. The debt on an existing mortgage must be paid off in order to utilize funds from a reverse mortgage and each situation can differ.

What can I use the money from my reverse mortgage for?

Once you receive a reverse mortgage, the money is yours to do with as you please. This money can be used for monthly expenses, to pay off medical bills or other such expenses, healthcare related problems or issues, home modification, vacations, cars, and so on.

Why are the fees so much higher than conventional loans?

The general fees for a reverse mortgage are for the most part the same with one major exception. The FHA gets about 40% of the fees front; this is in the form of mortgage insurance. This guarantees your credit line and payments. Recently a large mortgage company from Pasadena, CA closed its doors. They also are involved in reverse mortgages, because of the insurance all the seniors are protected.

Additionally, there are reasons such as: NO INCOME, CREDIT, EMPLOYMENT, OR HEALTH REQUIREMENTS. The MIP (Mortgage Insurance Premium) makes the program available as the lender has NO CASH FLOW from the mortgage. The lenders average exposure is about $200,000 with no return for years. This naturally can be higher based on age or region of the country such as California, Hawaii, and Alaska.

Tenure payments are only offered in the reverse environment. These are the monthly payments that a senior can receive as their benefit. Many banks and credit unions have frozen their home equity lines because of the meltdown. The insurance although pricey, is an integral part of the structure of this product, which allows the senior piece of mind, and the loan officer the continued confidence that his or her clients maintain the security that both parties chose as their plan of action for a better life.

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