Is a REVERSE MORTGAGE RIGHT FOR YOU? 5 Most Common Questions about RM

The Most Common 5 Reverse Mortgage Questions by David Prulhiere Lots of questions come our way about the specifics of a reverse mortgage. Redwood Financial Services is committed to giving you all the facts, so you can make your decision in an informed manner. Five of the more commonly asked questions are listed below to get you started on your quest for knowledge. 1. I don't owe anything on my home. Can I still do a reverse mortgage? Absolutely. Not owing anything is actually an advantage because you will have more cash available, since you don't have to pay off a mortgage first. In the more common event of having a mortgage, you can still do a reverse mortgage. The first step is paying off your mortgage(s) with your new reverse mortgage. After that, any available equity remaining can be taken as a lump sum, credit line, or monthly installments. 2. Do I qualify if I am behind on my taxes? Definitely. It is one of the best reasons to to do a reverse mortgage. It gets the tax man off your back and takes some pressure off of you. Oregon will allow seniors to defer their property taxes, so consider that option to make a little room in your budget. 3. Does the Bank take the title to my home? The title will be used as the collateral, but you don't give up your home. It is still your home and you retain all rights to refinance or sell. any remaining equity always belongs to you or your heirs. 4. Do reverse mortgages allow me to purchase a home? In January of 2009, there was a program introduced to allow a purchase of a home with a reverse mortgage. 5. What happens if I use up all my equity? It takes a long time to "use up" your equity. If your home appreciates at all, the time frame to use up your equity is usually 20-30 years. Using an amortization schedule will show you the expected time frame and how much equity (approximately) you have in the home. In the event you do use all your equity up, the lender cannot force you out of your home. The note is written to allow you to not repay the loan until you no longer live there as your primary residence. Visit our website if you want to see more frequently asked questions and answers about reverse mortgages. There is a large amount of educational information for free. Get informed before you make your decision.