Utah Reverse Mortgages- F.A.Q

Frequently Asked Questions & Answers

Have a look at frequently asked questions & answers to understand more.
No. You will maintain ownership of your home. You are not relinquishing title or ownership, you are simply borrowing against the equity of the home. Just like any other loan you just have comply with the terms, which in this case entails maintaining the home, paying your property taxes, and keeping insurance on the home.
Just like a traditional mortgage, the reverse mortgage becomes due and payable when you sell the home, or when all borrowers leave the home. The borrowers must have the home as their primary residence, maintain it, pay the property taxes, and keep insurance on it. There is absolutely no prepayment penalty or restriction to the homeowner's right to sell the property at any time.
The loan proceeds from a reverse mortgage are not considered income. In some circumstances, Medicaid and other income-based benefits may possibly be affected (Consult those specific programs for details). For Social Security benefits however, the longer you wait to take those benefits, the more you may receive.
The older the borrower(s) are, the more funds may be available.
The higher the appraised value of the home, the more funds may be available.
The lower the interest rate, the more funds may be available.
Every borrower on the loan has be at least 62 years of age. However, you can have a spouse designated as a non-borrowing spouse, who is less than 62. Please contact one of our consultants for more information.
One thing you need to understand is that your home will continue to appreciate in value. Even though your equity is used to make the reverse mortgage payments, oftentimes the value of your home can still exceed the amount used to make the payments. We can provide you several projected scenarios, based on rate of appreciation, to show you how much projected equity you will have remaining over time. Also, remember that this is a non-recourse loan. So after the estate satisfies all obligations and the reverse mortgage loan is repaid, any remaining equity goes to the heirs. No debt over and above the value of the property will ever be passed on to the borrower's heirs.
Reverse mortgages can be a powerful financial tool, not only to refinance your current primary residence, but for the purchase of a new primary residence as well. Reverse mortgages can provide you tax-free* cash for monthly expenses, increase your monthly cash flow by eliminating your mortgage payment (and potentially other debt payments as well) , delay your Social Security benefits which provides you a higher monthly Social Security benefit, and can also give you access to a line of credit for future use. The benefits are extraordinary.
You are free to make payments anytime you like on your reverse mortgage, however most borrowers choose not to.
This is the only way to tap the equity in your home without having to make monthly loan payments. You can also take out a traditional refinance loan, or a home equity line of credit, but both of those options require you to pay the loan back with monthly payments.

For more information on reverse mortgages, check out our Resources page:

Resources 

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