How can I receive the cash from a reverse mortgage?
You have a range of options:
- Lump sum
- Monthly payments
- Line of credit (take funds when you need them)
- A combination of the above

How can I use the proceeds?
You can use the proceeds for the things you need and want. Common uses include paying monthly bills, fixing up your home, paying for prescriptions and health care, making a major purchase, traveling, helping children or grandchildren, and planning for the unexpected.

What if I still owe money on a first or second mortgage?
You may still be eligible for a reverse mortgage depending on the amount of your remaining mortgage versus the value of your home. The funds from the reverse mortgage would first be used to pay off whatever existing mortgages you have on the property.

In addition to the interest, are there fees associated with a reverse mortgage?
Most reverse mortgages have an origination fee, closing costs, a mortgage insurance premium, and a monthly servicing fee. These can be paid from the proceeds of the reverse mortgage itself, so there is no immediate burden to you. The costs are added to the principal and paid along with the interest accrued on the total principal balance when the loan becomes due.

What has to be repaid when the loan becomes due?
The loan balance-including any fees that have been added to the principal and the accrued interest on the total principal balance-needs to be repaid. This is usually done through the sale of the house or other assets or repaying the reverse mortgage through a conventional mortgage.

Will a reverse mortgage affect the estate I leave to my heirs?
When the loan becomes due, you or your estate must repay the lender for the cash received from the reverse mortgage, plus interest and service fees. You or your estate can choose how to repay the loan-by selling the property, by refinancing, or by using other assets. Any sale proceeds in excess of the loan balance belong to you or your heirs. If you sell your home for a fair market price that is less than the loan balance, then there would be no proceeds to keep, but the bank cannot claim from you or your estate more than the sale amount received.

When will the principal and interest charges become due?
The reverse mortgage loan must be paid in full when one of the following occurs:
All borrowers permanently move out of the home
The last surviving borrower passes away, sells the home, or fails to live in the home for 12 consecutive months
You fail to pay property taxes or insurance
You let the property deteriorate beyond what is considered reasonable wear and tear, and do not correct the problems

What if one of the co-borrowers passes away?
The surviving borrower can continue to own and live in the home-and enjoy all the benefits of a reverse mortgage.
Call us now for more free reverse mortgage information in Pinellas, Pasco and Hillsborough Counties in western Florida.

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