If you do not find the answer to your question, Give me a Call at 216-324-8113
or
Click Here to send an Email Question, Ask for More Information or Make a Suggestion.

 

Tim Bradford   
Loan Officer   
216-324-8113
   

 

Common Misconceptions of a Reverse Mortgage

The bank takes my home!.
False. The homeowner retains ownership - full title in their name. No one can take the home away from the owner.

I can owe more than my home is worth.
False. The homeowner can never owe more than the current value of the home at the time of sale.

If I have poor credit or am in debt I cannot qualify for a Reverse Mortgage.
False. A Reverse Mortgage has no income, asset or credit qualifications. The only qualifications are that you must be at least 62 years of age, own and live in the home as your primary residence and have enough equity built up to qualify.

My heirs have to pay off the home when I die.
Fact: You and your heirs are not personally responsible to pay anything back - only the home value does this. Your heirs have six months to settle your estate, and if there is not enough money left - HUD comes in and makes up the difference.

There are no responsibilities with a Reverse Mortgage.
False. With a Reverse mortgage you are responsible for paying taxes and insurance as well as normal upkeep of the property. You DO NOT make any monthly mortgage payment as long as you remain in the property as your primary residence no matter how long you live.
 


How is Interest Charged?
Interest on a HECM Plan is adjustable and is tied to readily available market indexes - the T Bill rate. The initial rate is determined at loan closing and adjusts either monthly or annually. Interest changes do not affect the amount of their monthly check. They are only charged interest on the Plan balance, which consists of the cash they have received and the financed closing costs. Interest rates are determined by HUD/FHA.

When Does the Reverse Mortgage Need to be Repaid?
The HECM Plan becomes due and payable when the borrower (Plan Owner) permanently leaves the home - whether they move, sell or pass away. HECM Plans are typically repaid from the proceeds of the sale of the home, with any remaining equity staying with the homeowner or their heirs. However, if the heirs wish to keep the home they do so by refinancing. If a spouse passes away, the surviving spouse continues to receive the full benefits of the HECM Plan, with no repayment until they decide to permanently leave the home.

Do I Still Own My Home?
Absolutely!
The Senior retains full ownership of their home when they obtain a HECM Plan. As with any mortgage the lender has a loan against the property. Since the home owner makes no monthly payments, the loan balance increases over time. When the loan is repaid, the value of the home repays the loan - the home owner and the heirs are not personally responsible to repay anything. The loan balance is paid off, which consists of the financed closing costs, the cash advanced from the HECM Plan and the interest that has accrued. The remaining equity stays with the homeowner (Plan Owner) or their heirs. If there is not enough equity, HUD makes up the difference.

What is a Counseling Certificate?
Before applying for a Home HECM Plan the Senior is required by HUD to meet with a HUD approved independent HECM Plan counselor. This FREE session is designed to help them decide whether a HECM Plan is right for them. The counseling session can be done either in person or on the telephone, and it is recommended family or trusted friends participate. At the end of the session you receive a Certificate.

Want More Information?
If you would like more information and to see if you qualify, without any obligation, please reply to this email by completing the form provided. (Your information is kept secure and confidential and is not shared. If you wish to contact us confidentially, please email us at
LenderBradford@Gmail.com or call me at (216)324-8113. Quite a fantastic program we think - Check it out!

 

 


Questions, comments, or suggestions?
Please contact us:
American Midwest Mortgage Corp.
6363 York Road #300, Parma Heights, Ohio 44130
Telephone: 216-324-8113


Updated

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Tim Bradford -- OHIO MB.803389/LO.007173 ---- NMLS CO.142066/LO.250013
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