Reverse Mortgage Frequently Asked Questions

You’ll find the answers to many common reverse mortgage questions here. Need to know more? Contact Us today. We’re happy to help.

Can a reverse mortgage be refinanced?

What is a Home Equity Conversion Mortgage (HECM)?

What has to be repaid when the loan becomes due?

How can I use the proceeds?

Will a reverse mortgage affect my government benefits?

Are interest rates fixed or variable?

What is a reverse mortgage?

How can I receive the funds from a reverse mortgage?

How is a reverse mortgage different from a traditional home equity loan or line of credit?

Will I have to pay any fees?

How much money can I get?

Will I be taxed on my reverse mortgage proceeds?

Can I refinance my existing mortgage, home equity loan, or other debts with a reverse mortgage?

When will the principal and interest charges become due?

What if one of the co-borrowers passes away or must move out for health reasons?

What are the basic requirements for a reverse mortgage?

Can I use a reverse mortgage to purchase a home?

Can a reverse mortgage be refinanced?

Yes, refinancing is possible. This option may be to your advantage if your home increases in value, making more funds available.

Read More Back to Top

What is a Home Equity Conversion Mortgage (HECM)?

A HECM is a reverse mortgage loan that's insured by the Federal Housing Administration (FHA).

Read More Back to Top

What has to be repaid when the loan becomes due?

You’ll repay the loan balance, any fees that have been added, and the accrued interest. Homeowners (or their heirs) usually…

Read More Back to Top

How can I use the proceeds?

Use the proceeds for the things you need and want. For example: refinancing your existing mortgage(s) to improve cash flow; consolidating…

Read More Back to Top

Will a reverse mortgage affect my government benefits?

The funds from a reverse mortgage generally do not affect regular Social Security or Medicare benefits. However, needs-based benefits, such as Medicaid…

Read More Back to Top

Are interest rates fixed or variable?

Reverse mortgages are available with either fixed or variable rates. Borrowers who elect a fixed-rate…

Read More Back to Top

What is a reverse mortgage?

A reverse mortgage is a home-secured loan that’s exclusively for homeowners and homebuyers age 62 and older. It allows borrowers to convert some of…

Read More Back to Top

How can I receive the funds from a reverse mortgage?

You have a number of choices for how you receive your funds:

  • Lump sum
  • Monthly…
Read More Back to Top

How is a reverse mortgage different from a traditional home equity loan or line of credit?

A reverse mortgage offers certain advantages:

  • With a traditional home equity loan or home equity line of credit, you…
Read More Back to Top

Will I have to pay any fees?

With the exception of a fee for government-required reverse mortgage counseling, most of the fees associated with a reverse mortgage can be financed…

Read More Back to Top

How much money can I get?

The specific amount depends on several factors, including:

  • Your…
Read More Back to Top

Will I be taxed on my reverse mortgage proceeds?

Typically, reverse mortgage loan funds are not subject to income tax. Contact your tax advisor for additional details.

Read More Back to Top

Can I refinance my existing mortgage, home equity loan, or other debts with a reverse mortgage?

Yes. For many homeowners age 62 and older who are looking to refinance their mortgage(s) or consolidate debt to reduce their monthly bills, a reverse…

Read More Back to Top

When will the principal and interest charges become due?

The loan must be paid in full when one of the following occurs:

  •  A “maturity event” —…
Read More Back to Top

What if one of the co-borrowers passes away or must move out for health reasons?

The other borrower continues to own and live in the home — and enjoy all the benefits of their reverse mortgage.

Read More Back to Top

What are the basic requirements for a reverse mortgage?

To be eligible for a reverse mortgage, you’ll need to meet the requirements set by the federal government:

Read More Back to Top

Can I use a reverse mortgage to purchase a home?

Yes, with the HECM (Home Equity Conversion Mortgage) for Purchase loan, qualified borrowers can use their loan proceeds…

Read More Back to Top

Verified Reviews

(119)

Thank You, Larry! Larry McAnarney is our reverse mortgage loan specialist. He did an excellent job of explaining the reverse mortgage programs, the process, requirements, how the monies would be accessed if approved. He followed up with me multiple times before I made the decision to proceed which I really appreciated. He assisted me in wading through all of the requirements in the application process. He was always available for a question either by email or phone. He was always encouraging and optimistic about our chances for success. He was helpful and very clear as to all the documents I needed to prepare and always allowed me a reasonable amount of time to comply. As our house is in trust there were further "hoops to jump through." Larry truly went above and beyond the call of duty on our behalf with the underwriters. I have no doubt that his extra hard work won the approval of our reverse mortgage. I couldn't recommend him more highly. He has my thanks!

Jacquelyn W — May 6, 2015

Many Thanks! We were hesitant about a reverse mortgage but our financial planner referred Larry McAnarney to us. So glad he did! Larry is very personable and professional. He explained everything to us and made sure we completely understood it all. Anyone would surely benefit by having Larry to consult with on a reverse mortgage. Larry, many thanks for all your help and peace of mind! Many Thanks!

Lee & Jeanette P — Aug 17, 2017

I Give Larry 10 Stars! We looked at the reverse mortgage as a way to help increase our monthly income. We initially looked at selling our home but decided we really wanted to stay in our home. We were given Larry’s name by a Realtor and the rest is history. There were challenges that needed to be overcome, but Larry helped us through everything. I would recommend him to anyone. I give him 10 Stars!!      

Tim & Carol M — Mar 5, 2019

Read More Reviews
memberships

This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency. RMF is a Licensed Mortgage Banker in the State of New York, but this loan originator and site are not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.

© 2020 Reverse Mortgage Funding LLC, 1455 Broad St., 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Legal approval #L976-Exp042018, Company NMLS ID # 1019941. For licensing information go to www.nmlsconsumeraccess.org/?EntityDetails.aspx/?COMPANY/1019941. For California consumers: For information about our privacy practices, please visit www.reversefunding.com/privacy . Not all products are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval. For more information about Larry McAnarney go to https://local.reversefacts.com/larry-mcanarney-d5f3b06e35a1
For additional licensing and disclosures please visit https://www.reversefunding.com     Where we lend    Terms of Use     Privacy

Arizona Mortgage Banker License #0927682; Georgia Residential Mortgage Licensee No. 36793, Originator License No. 40299; Kansas Originator License LO.0001032; Licensed by the New Jersey Department of Banking and Insurance; Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act; Loans made or arranged pursuant to a California Financing Law license; Texas Mortgage Banker Registration in-state branch address 6044 Gateway East, Suite 236, El Paso, TX 79905 (Branch NMLS 1244676); Not intended for Hawaii and New York consumers.