There are three separate ways to receive the cash from a reverse mortgage. 1.) A single check at close 2.) A monthly income or 3.) An equity line of Credit. And you can take a combination of these three based on your specific situation. We recently had a client who took out a lump sum […]
When I get a reverse mortgage, who owns my home?
Bottom line, you continue to own your home when you have a reverse mortgage. Just the same as if you had a traditional forward mortgage. You remain on title and the owner of the home, until the home is sold or passes to your heirs. While you remain the owner of the home, you continue […]
How much are the closing costs on a Reverse Mortgage?
There is an old saying that there is no free lunch and that is particularly true in mortgage and real estate transactions. The closing costs for a reverse mortgages are similar to those for a forward mortgage, including escrow, title insurance, appraisal, up front mortgage insurance and origination fees. In general these fees are not […]
Will my property taxes be impacted ?
Your property taxes will not be impacted. Even though an appraisal is done to establish the value of the home, it is never shared with the county for tax purposes, and in the state of California property taxes are based on the initial sales price of the home then adjusted annually subject to annual limits. […]
Do I have to pay income tax on the proceeds from a reverse mortgage?
I am not a tax professional but I did find this information on the IRS web site. “ Because reverse mortgages are considered loan advances and not income, the amount you receive is not taxable.” In the next sentence the IRS clarifies that deferred interest on a reverse mortgage is not tax deductible until it is […]
I have a reverse mortgage, what happens to my home when I die?
When you have a reverse mortgage on your home, when the last spouse dies, the heirs have a time period in which to deal with the home and it’s associated reverse mortgage. Your heirs will typically be given six months before the reverse mortgage is due and payable. During that time they can choose to […]
Can I get a reverse mortgage if I have added my children to the deed of my home?
If your children are at least 62 years old and live in the home, then they can be included as an additional reverse mortgage borrower. This may be useful if your child is due to inherit the home. However if your children are not at least 62 years of age, or do not live in […]
How will a reverse mortgage impact my spouse?
To obtain a reverse mortgage, all borrowers must be listed on the deed to the home and be at least 62 years old. If married, both a husband and wife will have to be on the loan application. Assuming both spouses are borrowers on the reverse mortgage, if one borrower predeceases the other, there is […]