Senior interest is growing and many are considering applying for Reverse Mortgage home loans. Seniors are now joining others who have already taken advantage of the Reverse Mortgages available as one of today's Colorado home loan options.
Following are common questions asked by seniors (age 62+) to determine if the Reverse Mortgage is a good choice for their lifestyle.
- Will the bank take my home if I opt for a Reverse Mortgage? No. The title remains in the homeowner's name.
- Do I seem desperate if I opt for the Reverse Mortgage? No. Large numbers of homeowners use the Reverse Mortgage as a financial planning tool to fund investments and any number of objectives such as in-home healthcare.
- May I obtain a Reverse Mortgage if I still owe my lender? You can qualify for a Reverse Mortgage if you have a low loan amount or a trust.
- Does the credit line pay interest? The increasing credit line grows over time and does not pay interest.
- Does the Reverse Mortgage only work for a principal residence? On a private Reverse Mortgage, some second homes also qualify. If the Reverse Mortgage is FHA-insured, only the primary home qualifies.
- Are all Reverse Mortgages FHA? Private lenders such as Lehman Brothers and Seattle carried private Reverse Mortgages.
- Are the closing costs high? Closing costs are included in the credit line and are paid when the loan is mature, sometimes after the home owner's lifetime. Although the appraisal fees are required up front during closing, some Reverse Mortgage loans can include appraisal fees in the credit line.
- Does the Reverse Mortgage tie up all the home equity? Brief verse mortgages do not allow 100 percent lending against the value of the property. The applicant is only charged for what is taken out.
- If I have a year of bookable trust, can I still do a Reverse Mortgage? For the Reverse Mortgage, the irrevocable trust can be used with the private jumbo program.
- Do I have to be a United States citizen? There are Reverse Mortgage programs for resident aliens and people with working visas.