There are many questions our clients have when they consider getting a reverse mortgage. It’s a big decision, and we think it is important to make it based on having all the information about the loan. Here are ten questions you should ask yourself when you are considering a reverse mortgage.
1. Why Get a Reverse Mortgage?
It is important to ask yourself why you are seeking a reverse. Our licensed specialists will be able to better customize the loan for you if they know why you want to get a reverse mortgage. Think about your goals for retirement and your financial situation. How will a reverse mortgage help you in your personal and financial life?
2. How Will I Use the Reverse Mortgage?
Going along with the previous question, having an idea of how you will use the loan will help you choose the right reverse mortgage product for you. If you have an immediate need – such as home improvements, debt consolidation, or a need for more money now – you may benefit from a fixed rate loan that disburses your proceeds in one lump sum. If you want to build an emergency fund or have access to more money later in retirement, an adjustable rate loan with a line of credit that grows in value over time may be a better option.
3. What Type of Home Do I Have?
The type of home you have may impact your decision. For example, if you have a high-value home, a non-FHA-approved condo, or a home with solar panels, you may qualify for our private reverse mortgage, HELO. If your home is a manufactured home, a property with more than 50 acres, or a property with more than four units, it may not qualify for a reverse mortgage at all.
4. Will I Be Able to Uphold My Financial Obligations?
With a reverse mortgage, you must continue to pay your property taxes, homeowners insurance, and home maintenance costs. Failure to do so may result in foreclosure. It is imperative that you maintain these financial obligations of the loan. Financial assessment will help you and your licensed specialist determine if you are able to uphold these responsibilities, or if there are necessary steps to take to ensure you are.
5. Do I Qualify?
The basic qualifications of a reverse mortgage are that you are 62 or older, own a home, and have enough equity in the home. If you think you qualify or you’re unsure, give us a call. While these are the basic qualifications, there may be more requirements. Speaking to a licensed specialist will help determine if this loan is right for you.
6. How Much Do I Qualify for?
To get the most accurate estimate of how much you can get from a reverse mortgage, it is best to call a licensed specialist. However, you can get a great estimate from our online reverse mortgage calculator. Give it a try! You won’t need to put in any personal information, nor any contact information, to receive an estimate.
7. Am I Willing to Share Personal Information?
At One Reverse Mortgage, you’ll work with your licensed specialist over the phone. In most states, you will also go through the required counseling on the phone as well. Some people may be nervous about sharing personal information over the line. With any type of mortgage or financial assessment, personal information is mandatory to put the client in the best position to succeed. We want to assure you that any information you provide to your licensed specialist is private and protected.
8. Do I know the Myths vs. the Facts?
There are a number of reverse mortgage myths out there, and it is important to know the facts. Here are a few facts some people are surprised to learn. You remain the owner of your home. Your heirs have options if you pass away. Reverse mortgages are not a loan of last resort.
Moral of the story: make sure you do your research and look for information from trusted sources.
9. Have I Talked to My Family About This?
While the decision to get a reverse mortgage is ultimately yours and yours alone to make, it may be helpful to talk to your loved ones about what you are considering and why you are considering it. It is better to answer questions and address concerns now. We can help with this step. Family members are always invited to sit on calls between you and your specialist, and we provide an informational guide specifically for families.
10. Who Should I Work With?
When it comes to financial decisions, you want to work with a company you trust. At ORM, we believe in every client, every time. Our specialists will work with you every step of the way to make sure you are choosing the best option for your retirement and financial goals.
We are happy to answer any questions you may have about the loan. Our licensed specialists can listen to your specific situation and goals and provide a custom quote. They’ll be able to see if you qualify and help find the right loan option for you. They can also send you an information kit that includes three informational guides and a DVD. It is important to know that you have no obligation to move forward in the process after you call to receive more information. We also recommend you speak to a financial advisor.