One Reverse Mortgage makes it easy for you to complete the reverse mortgage process. Our process happens in five easy steps. You will have a licensed expert walking you through each and every step of the process. Whether if you are going through the process or thinking about starting the reverse mortgage process, here are some things to remember with the reverse mortgage.
There are loan options – With the reverse mortgage program you will have a few options. There is a reverse mortgage fixed and a reverse mortgage line of credit. Each option has its benefits. When you call One Reverse Mortgage your licensed expert will go over your financial goals and help you to decide which will make the most sense for what you want to accomplish.
You are responsible for property taxes, insurance, and maintenance – With a reverse mortgage you never have to make another mortgage payment as long as you stay in your home*. You will still be responsible to pay for property taxes, insurance and the maintenance of the home. These are the same requirements with a traditional mortgage.
Reverse mortgage proceeds are tax-free** – However you choose to receive the proceeds from your reverse mortgage, whether a line of credit, lump sum, monthly payment or a combination of any of these the proceeds you receive are in tax- free money which you can use for anything.
You can leave your home your heirs – A common misconception of a reverse mortgage is your heirs cannot keep your home. That is untrue. In fact, your heirs have several options with the reverse mortgage program. Check out our blog post, What Your Heirs Need to Know About a Reverse Mortgage, to learn about your heir’s options.
Interest on a reverse mortgage is not deductible – Interest on your reverse mortgage is not tax deductible at the end of each year. The interest is not tax deductible until the loan is paid off, either in part of in total.
Proceeds can be used for anything – The money you receive as you just have read is tax free and it can be used for anything. Many seniors use the proceeds to help pay for medical costs, travel more or save for a rainy day.
Insured by the FHA – The reverse mortgage options that One Reverse Mortgage offers are federally insured by the Federal Housing Administration (FHA). The FHA insures the reverse mortgage but does not offer the loans directly to consumers. Reverse mortgage loans that are insured by the federal government have additional benefits that private reverse mortgage companies cannot provide.
You have the right of rescission – Before your reverse mortgage is finalized you will have three days to cancel the reverse mortgage. This time period is often referred to as the right of rescission. During this time you have the ability to cancel the reverse mortgage. There are no cancellation fees or penalties for canceling the loan.
If you have any more questions about a reverse mortgage check out our Frequently Asked Questions page or give us a call. A licensed expert can answer any questions you have. They can even give you a free customized quote or what you could qualify for with a reverse mortgage.
*Homeowner is still responsible for taxes, insurance, and property maintenance.
**Please consult with your financial advisor.