REVERSE MORTGAGE INFORMATION

Mainsail Mortgage is a company built on trust and honesty.  We take a consultative approach and will make every effort to make this process as easy and enjoyable as possible for you.  We sincerely appreciate your interest and look forward to assisting you.

Below are answers to the most commonly asked questions about reverse mortgages.  If you would like to get information tailored to your own personal situation please call (904)834-6500 or email ehilliard@mainsailmtg.com.

What is a Reverse Mortgage?

A reverse mortgage is a loan for seniors age 62 or older.  A reverse mortgage allows homeowners the ability to convert some of their home equity into tax-free cash, a line of credit, or even purchase a home with no monthly mortgage payments.  The most common type of reverse mortgage is the Home Equity Conversion Mortgage, or HECM, and is insured by the U.S. Federal Government.  Unlike a traditional “forward” mortgage, a reverse mortgage does not have to be repaid until the last surviving borrower (or a non-borrowing spouse who meets certain requirements) no longer lives in the home, or the home is sold.  The home owner remains responsible for keeping current with property taxes, hazard insurance, and maintaining the condition of the home.

A reverse mortgage might be right for you if:

  • You are 62 years of age or older
  • You have equity in your home
  • You prefer not to have the hassle and expense of monthly mortgage payments*
  • You would you like tax free cash
  • You would like access to an emergency line of credit

REVERSE MORTGAGE FAQ’S

Will the bank own my home? 

NO.  As long as the terms of the loan are met, the borrowers retain full home ownership and can sell or refinance the home at any time.  The same as a traditional mortgage.

Are reverse mortgages only for desperate and/or struggling seniors?  

This is a complete misconception.  Reverse mortgages have been used by thousands of people as a well thought out strategic financial planning tool.  However, a reverse mortgage should be carefully planned out with your Mainsail Mortgage professional and/or any trusted advisors you may have to ensure the program accomplishes your unique goals.

Can I PURCHASE a home with a reverse mortgage? 

YES, you can.

What are my options for receiving my reverse mortgage funds? 

You may receive:

  • Full or partial lump sum
  • Line of credit
  • Monthly payments (tenure or modified tenure plan)
  • Combination of any of these options

How will the reverse mortgage be repaid? 

Your reverse mortgage will be repaid when the last borrower leaves the home or passes away.  In most situations the home is sold at this point and the proceeds pay back the reverse mortgage loan.  ALL remaining equity after the loan is repaid goes to you and your heirs.  You do also have the ability to refinance into a traditional forward mortgage as well.

Can my heirs EVER be responsible if the loan balance exceeds the value of my home

NO.  A HECM Reverse Mortgage is a non-recourse loan.  This means you or your heirs are fully protected if your loan balance exceeds the value of the home.

What can I use the money for?

There are no restrictions on what you can use the money for.

What are the costs associated with a Reverse Mortgage ?

The majority of costs can be rolled into the loan to minimize out of pocket expenses.  Some of the typical charges are very similar to a traditional “forward” mortgage.  These may include an appraisal fee, origination fee, mortgage insurance premium, a modest charge for HECM counseling, and closing costs.

 

* Homeowner(s) must pay their property taxes, homeowners insurance, and maintain the home.

**Please note, these materials are not from HUD, FHA or any other government agency. This information was not approved by the Department or Government Agency.

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A Reverse Mortgage Is Right For You