Frequently Asked Questions
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Below is a list of frequently asked questions about Reverse Mortgages. If you have any questions of your own or would like further information regarding one of the questions below, feel free to contact us at: info@goreverse.com.

What exactly is a reverse mortgage?

A reverse mortgage is a financial agreement that is reached between a money lender and a home owner that allows the home owner the chance to get some tax free income that they don’t have to pay back for a long time by using part or all of the equity that they own in the form of their house. A house is some of the most powerful equity that a person can own and accessibility to a reverse mortgage is just one of the many benefits that you can enjoy when you are a home owner.

Who qualifies for a reverse mortgage?

Generally speaking, as long as you are aged 62 or older and happen to own a home, you will be able to qualify for a reverse mortgage. Just like other types of home loans however, the amount of money that you can get through a reverse mortgage will be limited by the amount of value (i.e. equity) that you have available in the property that you own.

Are reverse mortgages the same things as home equity loans?

No, they are two different home loans! A home equity loan is a loan that you take out on the value of equity in your house and in that sense is similar to a reverse mortgage. The main difference however is that with a home equity loan you are going to almost immediately have to make monthly payments on that loan in order to pay it back. In that sense, a home equity loan is far more similar to a mortgage than to a reverse mortgage as with a reverse mortgage you are not required to pay the money back immediately.

When do I have to pay the money back for a reverse mortgage?

This depends on your current situation. The person who takes out the loan has to be the person that owns the home, and generally speaking, when that person leaves the house as a place of residence, the loan will come due. The two most common occurrences of this are the home being sold or the person in question passing away, and therefore, those are also the two most common events that can take place that would make the loan actually due.

Can I lose my house through a reverse mortgage?

No, absolutely not! In this way, a reverse mortgage is actually much better than many of the other home loans out on the market, because it is actually impossible for you to lose your house as a result of a reverse mortgage. If you were going through a normal mortgage and happened to miss a monthly payment, then the bank could take your house back because it is collateral on a mortgage. However, there are no monthly payments with reverse mortgages because they are not due until you pass away or sell your house; it’s a win-win situation, and one that has the potential to benefit you greatly.

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