Reverse Mortgages…Your Questions Answered!

Will the bank own the home?

No – The homeowner always maintains title ownership and control of their home, and they have the freedom to decide when and if they’d like to move or sell.
With a reverse mortgage will I owe more than my home is worth?

No – HomeEquity Bank’s conservative lending practices allow clients to take a maximum of 55% of the home’s appraised value. In fact, 99% of HomeEquity Bank’s clients have equity remaining in the home when the loan is repaid.
Are reverse mortgages expensive because the rates are really high?

No – HomeEquity Bank rates are modestly higher than regular mortgages because there are no payments required.
Should we only consider a reverse mortgage as a solution of last resort?

No – Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer.
Can we get a reverse mortgage if we still have an existing mortgage or Home Equity Line of Credit?

Yes – For clients that have an existing mortgage, the first step we will take is to pay off your conventional mortgage along with any other secured debt. We will often help to pay out unsecured debt as well to improve your overall financial position.
Would a Home Equity Line of Credit (HELOC) be a better option?

Maybe Not – We can help you figure that out. As a Licensed Mortgage Broker, Marci Deane is experienced with both of these unique mortgage Products.

Generally speaking, HELOCs are a good short-term borrowing option for people who can pay the interest and loan in the near future. However, HELOCs are callable loans with monthly payments and there exists significant risk of non-renewal or cancellation.
In comparison, a reverse mortgage is a long-term financial solution that won’t be called based on economic changes such as interest rates increasing, property values decreasing, or a change in the homeowner’s income. Also, money from a reverse mortgage provides the ability to prolong retirement savings.
Can the bank force the homeowner to sell or worse, can they foreclose at any time?

No – A reverse mortgage is a lifetime product, and as long as property taxes and insurance are in good standing, the property remains in good condition, and the homeowner is living in the home, the loan won’t be called even if the house decreases in value. Reverse mortgages provide peace-of-mind that the homeowner can stay in their home as long as they’d like.
Will the surviving spouse be stuck paying the mortgage off if one homeowner passes away?

No – Surviving spouses can choose to remain in the home without having to make a payment unless they choose to sell the home.