Answers to Common Questions About Reverse Mortgages
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No, in fact, there may be a lot of variation in the fees for reverse mortgages from different providers. While there are limits on the fees a lender can charge, some change a lot more than others. CenturyPoint Mortgage's fees tend to be lower than big banks and large mortgage companies.
No, you are not selling your home or giving up title when you get a reverse mortgage. You retain title to your home and can live there as long as you choose.
No. The nicest thing about a reverse mortgage is that your house pays you - instead of you paying the bank. There are no monthly payments. The reverse mortgage is paid off when you move out, sell the home or pass away.
Will I owe taxes on the money I receive?
No, you are simply taking equity out of your home and that is not considered income.
How will a reverse mortgage affect my Social Security or Medicare?
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Are there restrictions on how the money is used?
The funds from a reverse mortgage are yours to use as you chose. You can pay for medical bills, make home repairs, remodel your kitchen or bath or travel the world. It's up to you.
Are the funds paid in one lump sum?
The borrower may receive funds in a lump sum at closing, but there are other options. If might be more convenient to get a monthly check to supplment other income, or to have access to the fund through a debit card like a line of credit for unexpected expenses. You can decide what's best for you.
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