| Frequently Asked Questions |
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Here are the top questions our loan officers in Maryland hear everyday. If your question can't be answered through the use
of this FAQ, then please do not hesitate to call us at 888.411.1728 (toll free):
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| 1. How does a reverse mortgage differ from a home equity loan? |
| For seniors older than 62 year of age who have equity in their Maryland homes, a reverse mortgage provides tax-free income. During the term of the loan the Maryland homeowner never gives up their title and is never forced to sell the home. The lender makes payments to the homeowner and not the other way around. Even if the lender pays out more money than the amount of equity left in the home, it is at the lenders expense and the homeowner always maintains their rights. |
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| 2. What are the advantages of a reverse mortgage? |
| You will be provided a tax-free income and never lose the title to the property. The loan is repaid only when you move out of the home. You will never owe more than the equity you have in the home. You can never live out the loan. |
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| 3. What will my monthly payments be? |
| This depends on several key factors like age, interest rates, type of loan, how well the home appraises, and how much you owe. |
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| 4. Are there restrictions on how I can you my new income? |
| There are no restrictions on how you spend your money. |
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| 5. Are there multiple ways that I can receive my payments? |
| Yes, you can get a lump sum, equal monthly payments, line of credit (not available in Texas), or a combination of these options. |
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| 6. How old do I need to be? |
| You must be 62 years of age or older qualify. |
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| 7. What is owed when a reverse mortgage loan is repaid? |
| Any principal you collected, interest charges, and service fees (such as closing cost fees) are paid from sale of the house or other assets of the estate once you move out of the home. |
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| 8. What costs and fees can I expect?. |
| You can expect to pay an application fee, origination fee, closing costs, insurance, and a monthly servicing fee. These can be paid upfront at the time of closing to made part of the loan. |
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| 9. Are there any safegaurds to protect me? |
| The federal government has mandated by law protections for seniors who decide a reverse mortgage loan is right for them. The main goal of these safeguards is to guarantee that in Maryland seniors maintain their homeowner rights and that they will not lose their home. These protections are part of the FHA HECM reverse mortgage loan products. For proprietary products the government has put together a set of best practices. |
