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.

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What is a Home Equity Conversion Mortgage (HECM)?

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

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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…

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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…

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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…

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Are interest rates fixed or variable?

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

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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…

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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…
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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…
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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…

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How much money can I get?

The specific amount depends on several factors, including:

  • Your…
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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.

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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…

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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” —…
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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.

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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:

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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…

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A pleasant experience Larry McAnarney was very professional yet warm in his dealing with both my wife and me. Our experience during the entire process was a pleasant one.

Paul C — Jan 30, 2014

My Financial Advisor Recommended Larry My financial advisor recommended I contact Larry about reverse mortgage options. I live in a condominium so there were some extra hurdles Larry had to go through to get the association approved. He always stayed in touch with me and answered all my questions. I don’t know what I would have done without both Larry and the Equity Elite Reverse Mortgage.

Mary Lou L — Jan 11, 2019

Larry Has Knowledge, Expertise, and Patience Larry is the best! He walked me through the process, explained all of my options, and was always available to answer my questions, I had many of them. He has the knowledge, expertise, and the patience that I required to guide me through this process. I was fortunate that he was referred to me by my financial planner, and I think that anybody else he works with will feel the same way.

Phyllis J — Jan 22, 2019

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