| Q. |
How do I know if I'm eligible for a reverse mortgage? |
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| A. |
You are eligible if you are age 62 or over and own a home, it's that simple. There are no requirements based upon income, assets or credit rating.
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| Q. |
Will I have to give up my home? |
| A. |
No. The title to the home remains in your name and you may stay in the home for as long as you wish.
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| Q. |
How much can I receive? |
| A. |
The amount you receive depends upon current interest rates, your age, and the value of your home. The older you are and the higher the value of the home the more money is available to you.
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| Q. |
How do I receive my money? |
| A. |
The choice is yours as to how the payments are received. You can take a lump sum payment, a line of credit, monthly payments, or a combination of the three.
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| Q. |
What about a home in a "living trust"? |
| A. |
A homeowner who has put their home in a living trust can usually obtain a reverse mortgage, subject to review of the trust documents.
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| Q. |
Are the proceeds taxable? |
| A. |
No. The equity built up in your home is a form of savings, so the payout to you is not taxable.
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| Q. |
Will this affect my Social Security or Medicare benefits? |
| A. |
No. A reverse mortgage has no impact at all on Social Security or Medicare benefits. For your specific situation consult your tax advisor.
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| Q. |
When is the loan repayed? |
| A. |
The loan matures when all homeowners have permanently left the home. At that time the amount due can be paid from the sale of the home, but it is not required that the house be sold.
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| Q. |
How much does a reverse mortgage cost? |
| A. |
There are a number of different reverse mortgage programs available to meet different individual needs. Most have origination fees and closing costs. These costs can be financed as part of the initial loan advance.
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