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?

What if I still owe money on a first or second 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: establishing a “rainy day” fund for the unexpected, paying…

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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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What if I still owe money on a first or second mortgage?

You may still be eligible. Proceeds from your reverse mortgage would first be used to pay off any existing mortgage(s).…

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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…
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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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Verified Reviews

(55)

Step by step help along the way Larry McAnarney was recommended to me. Fortunately, I was able to contact him to assist me in securing a reverse mortgage. He talked to me in terms that I could understand which made my steps possible. He politely and patiently answered my questions and proposed some himself. There was always an update from him on progress or what I should be expecting. To have a person that is comfortable to have a conversation with is important to me. I felt that any question or comment I had was going to be received in a friendly and business like manner. After all the paper work was finished and the reverse mortgage was secured, he still phoned to check if I had questions. I have already recommended him to people who are retirement age, or to their families, in case this could be of assistance to their parents. Obviously, I have a high opinion of my experience.

Deanne R — Mar 31, 2015

Clone Larry! When we met Larry McAnarney, it did not take long to feel comfortable. There was no high pressure feeling; he answered our questions and put us at ease. Larry was great! Our Hud counselor, and the gentleman who did our closing were very good, too. Only one problem.....we should have done it sooner. Larry gets SIX stars. Bernice and Dave

Bernice & Dave L — Oct 28, 2014

Easy Process and Friendly Service Larry was great to work with. He guided me through the process and was very specific about the information I needed to provide so that I was prepared each time we met. He came to my home for all of our meetings and that was very convenient for me. Larry was aware that I needed to get my loan closed as soon as possible and he made sure the underwriters were aware of that. When it was time for me to close, I asked Larry to be there since I trusted him and wanted his support. He was there as promised. Closing was easy and straighforward and everything went the way I expected. I am very pleased with Larry and would recommend them highly.

Rhonda T — Oct 19, 2015

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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.

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