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    • HOME
    • REVERSE MORTGAGE FAQ
    • IS IT RIGHT FOR ME?
    • PROS AND CONS
    • WHAT ARE THE SAFEGUARDS?
    • WHAT IS HECM COUNSELING?
    • FIRST TIME HOME BUYERS
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    • FINDING THE RIGHT LOAN
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  • HOME
  • REVERSE MORTGAGE FAQ
  • IS IT RIGHT FOR ME?
  • PROS AND CONS
  • WHAT ARE THE SAFEGUARDS?
  • WHAT IS HECM COUNSELING?
  • FIRST TIME HOME BUYERS
  • PURCHASING WHAT NOT TO DO
  • FINDING THE RIGHT LOAN
  • POOR CREDIT -WE CAN HELP.
  • VA HOME LOANS
  • MANUFACTURED HOMES
  • DOCUMENTS-UNDERWRITING
  • ADVISORS MORTGAGE INFO
  • CONTACT US
  • ABOUT KATHIE ADLER
  • FLOWERS AND ME
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Helpful Information ~ Reverse Mortgage Long Island.com

Call for info: 888-843-9797 or 631-804-9044

Frequently Asked Questions

Questions & Answers About Reverse Mortgages

Who insures Reverse Mortgages? The FHA HECM, Home Equity Conversion Mortgage, is administered through the United States Department of Housing  & Urban Development (HUD) and insured by the FHA (Federal Housing Administration).


How do I qualify for a Reverse Mortgage? 

You must be at least 62 years of age, own your own home, and use it as your primary residence for at least six months of the year and not be delinquent on any federal debt. What  if my spouse is not 62 years of age?  Thankfully, through the  Reverse Mortgage Stabilization Act of 2013, there has been a change in reverse mortgage parameters so that even IF you have a spouse who is not 62 years of age, you can still do a reverse mortgage.  By being listed on the HECM as a non-borrowing spouse, he/she will be protected and be able to remain in the home after your passing, and the reverse mortgage will not become due and payable when the borrower passes away. However, if you have a HECM line of credit, it would no longer be accessible, and any monthly proceeds would end. Speak to your reverse mortgage professional about these issues to see if a Reverse Mortgage is still a viable option for you. You can also refer to the HUD Mortgagee Letter # 2014-07 , April 25, 2014 regarding non-borrowing spouse parameters .

NOTE:  Prior to getting a reverse mortgage, consult an attorney to obtain any necessary documents in existence such as will, life estate, power of attorney, marriage certificate (all where applicable) as these documents will be reviewed by an underwriter at the lender especially if there is a non-borrowing spouse.  


(See your Reverse Mortgage specialist for more details and to have your questions or concerns answered.)  


Note:  There are proprietary reverse mortgages for those age 60 years and above, however, the proceeds would be lower especially if you have a sizeable mortgage balance. It is possible you might not qualify.)


Who Benefits from Doing a Reverse Mortgage?

Many people do reverse mortgages in order to make their retirement even better. Some choose a reverse mortgage who are widowed and no longer receive two  social security checks, one which was their spouse's.  Borrowers who wish to renovate their homes, those with little money set aside for retirement, and those who just want a financial tool to maximize their retirement are all candidates for a reverse mortgage. Many borrowers like the line of credit feature for unforeseen emergencies, knowing the line of credit will be available to them and also grow over time.  


What types of homes qualify for a Reverse Mortgage? Single Family homes, 1-4 unit dwellings, townhouses, detached homes, condominiums, PUD's and most manufactured homes are eligible for reverse mortgages. (Condominiums must already be FHA approved, but if they are not, there is a process to get approval with FHA.) (Co-ops are not currently approved for reverse mortgages. Mobile homes are also not eligible for a reverse mortgage as most are not on a permanent foundation. Please refer to our Manufactured Homes page for more.)


If I decide to do a Reverse Mortgage, will there be an inspection of my home? Yes, there will be an inspection of your home known as an appraisal. Your home, inside and out, will be evaluated to determine its value.

Are there any restrictions on the use of funds with a Reverse Mortgage?
No. You can use the proceeds of a reverse mortgage any way you like. Help a family member, travel, pay bills, fix up the house, buy a second home, or pay off your mortgage.  


Who Pays My Property Charges on My Home? 

You will pay your property taxes, homeowner's insurance, condo fees where applicable, flood insurance, HOA fees, etc. but you can also request these to be escrowed.  Additionally, you must be able to show (through providing documentation to the lender) that you are able to pay your real estate taxes, homeowner's insurance, flood insurance where applicable, condo fees, HOA fees, and any fees related to owning your home.


How much money can I borrow?  

That depends on a few factors: age of the youngest borrower, the appraised value of your home, current interest rates, and balances on any current liens (mortgages, equity loans, judgments). Naturally, you do not receive ALL the equity or the entire lending limit or there would be no equity left. But the older you are, the more money you receive of the current lending limit. So if your home is worth $765,600 (which is the current max lending limit) and you are in your nineties, you would receive more proceeds than if you were only in your sixties. Now, there are also reverse mortgage  JUMBO loans for homes in the millions up to a lending limit of $4,000,000 and home values up to $10,000,000, and that can often work out better for some borrowers than the standard reverse mortgage.  (Note: The FHA max lending limit is changing in 2021 to $822,375 which will help higher value homes. (See HUD Mortgagee Letter. Hud.gov/pressrelease-12-2-2020


What is an Index Used by HECM Mortgage Lenders on Adjustable Rate Mortgages?

A mortgage index is the benchmark interest rate an adjustable-rate mortgage's fully indexed interest rate is based on. An adjustable-rate mortgage's interest rate consists of an index value plus an ARM margin. The margin tends to be constant, but the index's value is variable. Several benchmark interest rates serve as mortgage indexes. For example, the CMT (Constant Maturity Index) and the LIBOR (London Interbank Offered Rate) are two of some of the indexes used by mortgage lenders. The CMT index is now used for the HECM program.


What is a Margin Used by HECM Mortgage Lenders on Adjustable Rate Mortgages?

The margin is the number of percentage points added to an index by the mortgage lender to set your interest rate on an adjustable-rate mortgage (ARM). The margin is set in your loan agreement and will not change after closing. The margin amount depends on the particular lender and loan.  To calculate your interest rate, lenders use two numbers: the index and the margin.  Index + Margin = Your Fully Indexed Rate.  At any point in your loan, you can calculate your interest by adding together the current index and the lender's margin together giving you your interest rate.


How is my money disbursed to me? 

HUD has designed the HECM program with two choices of HECM'S. HUD offers the Fixed Rate HECM and the Adjustable Rate HECM. Each has  its advantages. The FIXED rate doesn't have the flexibility of the ARM option.  There is no line of credit available, there is no monthly payment option, and no other types of disbursement options.  It is a basic cash out and limited to a one-time lump sum disbursement with no other disbursements available after that.


The Adjustable Rate HECM has several options so you can tailor your proceeds as you wish. On this HECM, your proceeds come in two disbursements, one limited to funds the first year and another draw of your proceeds 365 after closing. I will explain how this works although it does get technical:  (NOTE:  On all HECM for Purchases, all the cash out come as one lump sum in one transaction at closing.) 


Disbursements at loan closing are limited within the first 12 months of closing and CANNOT EXCEED THE GREATER OF: 60% of the Principal Limit or Mandatory obligations plus 10% of the Principal Limit. This pertains to ALL payment options, including lump sum, term, tenure, line of credit, modified term and modified tenure.  Note: Borrowers with outstanding mortgages in excess of 60% can still take the additional 10%, as long as disbursements do not exceed the Net Principal Limit or Principal Limit.


IMPORTANT: If the borrower takes more than 60% of the Principal Limit, the cost of MIP or Mortgage Insurance increases significantly. If the disbursement is 60% or less, MIP is 0.50 of the Principal Limit. It increases to 2.00% if the disbursement exceeds 60%.  Mandatory obligations for traditional and refinance transactions include customary closing costs, plus any liens on the property, and so forth.


The remaining portion of your HECM proceeds are available from a line of credit set up for you and can be accessed 365 days after closing. With the Fixed HECM, you get no second disbursement, so you are leaving money on the table and not receiving as much as with the HECM ARM.


Reverse mortgage options for disbursement of your proceeds:

You may choose a lump sum, fixed monthly payments (tenure), a line of credit, or a combination of all three. There are other ways to maximize your proceeds: 


Modified tenure:  Set up a line of credit and also receive a monthly payment for as long as you and your co-borrower live in the home.


Modified term. Add a line of credit along with monthly payments for a specified amount of years.   You can choose to have your money disbursed over a shorter period rather than over the term of the loan.  A shorter loan term will increase your monthly proceeds.  Although with term loans, the monthly payments cease when the term expires, you still remain in your home and on title. 


How long does it take to close a Reverse Mortgage?
It generally takes 30-60 days to close a Reverse Mortgage depending on varying circumstances. Any application with special circumstances involves more care and can take longer.  


What happens at the closing? Mortgage documents are signed at the closing, and taxes are paid if due. You receive your proceeds after a three day right to cancel period known as the right of rescission period. 


Does the lender own my home?
No, the  lender does NOT own your home. Just as with any mortgage on your home, you retain title as the owner, not the bank.

How will the proceeds from a Reverse Mortgage affect my taxes, social security, or other benefits?
Proceeds from a reverse mortgage are not considered taxable income so your income taxes are not affected. Your Social Security and Medicare benefits are also not affected. The impact on other federal, state, or local assistance programs such as Medicaid should be discussed with a financial advisor.  NOTE: Your Medicaid benefits may be affected if your Reverse Mortgage proceeds are not spent down in the month they are received. (Check with your tax advisor.)


Who Pays My Real Estate Taxes If I Take Out a Reverse Mortgage?
You continue to pay your real estate taxes along with your homeowner's insurance and maintain your property. If you live in a condo or are part of an association, those fees must also be paid. (We will discuss a way to have your taxes set aside in escrow to be paid by the lender in another section of this website.)

 
My wife is not yet 62. Can I still get a Reverse Mortgage? What happens if I pass away? With the new regulations FHA has put in place, spouses under the age of 62  and not listed on the HECM reverse mortgage can remain in the home after a borrower passes away through a deferral period set by HUD. The remaining spouse will be required to keep paying taxes and homeowners insurance on the home as well as maintain the home.  There are other parameters.  (HUD  Mortgagee Letter  2014-07 , April 25 , 2014).


Can I deduct the Reverse Mortgage interest from my income taxes? Will my heirs have to pay tax on the proceeds I received from my Reverse Mortgage?
Because you are not currently paying interest on your reverse mortgage through mortgage payments, you will be unable to deduct the interest from your income taxes. However, your heirs may be able to deduct all or a portion of the interest that has accrued, however, they will need to consult a tax advisor. Reverse mortgage proceeds are tax free; there is no tax on the proceeds.


When is the Reverse Mortgage repaid? Repayment occurs when your home is no longer your primary residence or when the loan is refinanced. This includes the death of the last borrower or when the borrowers move or refinance. This is known as a maturity event.

  
What will I owe at the end?

What monies are owed the lender at the end of the reverse mortgage  are as follows: Principal, interest, mortgage insurance, and monthly services fees (if any were charged)  that have accrued over the life of the loan.


What if I owe more than my home is worth when I sell?
A Reverse mortgage is a "non-recourse" loan which means the house stands for the debt. You can never owe more than your home is worth upon the sale of the property even if your home's value is less than what is owed the lender. Mortgage insurance, required by the FHA, protects borrowers from owing more than the value of the home.  And lenders become whole if there is a loss through FHA Mortgage Insurance.

GOT QUESTIONS?

Call Advisors Mortgage now for a free,  no obligation Reverse Mortgage Quote! 


888-843-9797 - or 631-804-9044 


You are entitled to get your questions answered so you can make an informed decision.  Your Reverse Mortgage Specialist will answer your questions, provide free, no-obligation comparisons and proposals, and help you better understand Reverse Mortgages.

IS A REVERSE MORTGAGE RIGHT FOR ME? CLICK HERE
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Common Misconceptions

Rumors Abound. Let's Set the Record Straight.

Your home must be debt free to qualify.

FALSE. If you have an outstanding mortgage or equity loan balance, and as long as there is enough equity, you may be able to pay off your mortgage and qualify for a reverse mortgage. All current mortgages and judgments or liens must be paid from the reverse mortgage proceeds and are then added to your reverse mortgage balance. A reverse mortgage specialist will advise you of the amount you qualify to receive and if your current mortgage balances cause a shortfall which would preclude you from doing the loan.  Sometimes, borrowers pay the shortfall at closing if this is feasible. 


Only senior citizens low on cash can benefit from a Reverse Mortgage.

FALSE. Seniors from all walks of life are taking advantage of reverse mortgages. Even though some borrowers may have greater needs than others, a reverse mortgage can be an excellent financial or estate planning tool for anyone. Even millionaires can get a reverse mortgage! Homeowners with high value homes are using reverse mortgages in a variety of ways. Protecting their estate from some of the estate tax after their passing can be accomplished with a reverse mortgage since a reverse mortgage places a lien on the property, and that lien is not subject to estate tax. (Consult with your tax advisor.)


Only those who have excellent credit, sufficient income, and good health can qualify for a Reverse Mortgage.

FALSE. Although there will be a Financial Assessment to determine whether a reverse mortgage borrower can maintain the taxes and insurance on their home, you can still obtain a reverse mortgage once approved by the lender. 


Bankruptcy, foreclosure, and judgments prevent you from obtaining a Reverse Mortgage.

FALSE. Borrowers who are currently in bankruptcy or foreclosure may be able to secure a reverse mortgage. Your bankruptcy trustee may give permission for the reverse mortgage to go forward. But you must show you've been on time with your payments for 12 months.  Consult with your attorney and your reverse mortgage specialist for details.


I will have to make monthly payments if I have a Reverse Mortgage.

FALSE. With a reverse mortgage, you never make any mortgage payments. However, if you desire to make payments or defray the costs, the lender will accept them.


The lender will take title to my home and own my home if I take out a Reverse Mortgage.

INCORRECT. You retain title and ownership of your home throughout the life of the reverse mortgage. The ONLY way any mortgage company can take your home from you is through a foreclosure action, whether forward or reverse.


My heirs will be personally responsible for my debt. 

FALSE.   Since the reverse mortgage is a non-recourse loan (a loan secured by collateral, usually real property, in this case a home), your heirs are not personally responsible for the loan. The lender can only look to the sale of the property for repayment of the debt. Your heirs, however, may wish to keep the remaining equity by selling the home or they might decide to keep the home by obtaining their own mortgage. (In the case of keeping the home, the full balance of the reverse mortgage will be due.)

GOT QUESTIONS?

 

Call now for a free no obligation Reverse Mortgage Quote! Advisors Mortgage is here to help.


888-843-9797 - or 631-804-9044


You are entitled to get your questions answered so you can make an informed decision.  Your Reverse Mortgage Specialist will answer your questions, provide free, no-obligation comparisons and proposals, and help you better understand Reverse Mortgages.


CLICK HERE - REVERSE MORTGAGE PROS AND CONS

Alternatives to Reverse Mortgages

When a Reverse Mortgage is Not the Best Option

Admittedly, a reverse mortgage is not the right vehicle for everyone. There are other options for staying in your home.  If you are looking for cash and don't mind paying a mortgage payment each month, there may be more attractive options.  


* Refinancing:  You might be able to lower your interest rate (depending on current rates) which can help ease some of the burden of high mortgage payments.  


* Equity Line of Credit:  You might also take out an equity line of credit, but remember, you must qualify. If you decide down the road you need more money or want to fix up the house, you would have to refinance that mortgage.  With a reverse mortgage, if you set up a line of credit and allow it to grow over time, there will be more money in the line than when you closed your loan.

 
* Selling Your Home: It may be more advantageous to sell your home rather than taking out a reverse mortgage.  A Reverse Mortgage gives you a portion of your equity, but selling will provide a much higher yield.

* Moving in With Children: Moving in with children or family is another option that may work better for you.

What are the benefits to getting a reverse mortgage?  Independence, tax free cash, a monthly stipend for the rest of your life, and living in a community with familiar surroundings are only a few. A reverse mortgage will give you all the mortgage safeguards you need as these safeguards are written into the reverse mortgage program.  So do your homework, learn as much as you can, and then make your decision.

Isn't it time your house paid you back?

Equity That Works For You

Not everyone can do a reverse mortgage. They simply owe too much on their current mortgage. But you'll never know until you see a reverse mortgage comparison from Advisors Mortgage.

It's not about us, it's about you.

Reverse mortgages have helped countless thousands of senior homeowners to enrich their lives, so why not you?  


No one can make the decision for you nor should they. Children, advisors, attorneys, friends, can all volunteer their advice.  But ultimately, only you know what is good for you. You should study and learn as much as possible about Reverse Mortgages. Ask your Advisors Mortgage loan officer for assistance and a free reverse mortgage proposal. 

  

Got Questions?  Click Contact Us for Advisors Morgtgage

888-843-9797 - 631-804-9044


Request Free Reverse Mortgage information from Advisors Mortgage and receive a free Reverse Mortgage proposal showing numbers and figures. We hope we have answered many of your questions. Feel free to contact us with any concerns you may have.  

CLICK HERE TO CONTACT US
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  • HOME
  • REVERSE MORTGAGE FAQ
  • IS IT RIGHT FOR ME?
  • PROS AND CONS
  • WHAT ARE THE SAFEGUARDS?
  • WHAT IS HECM COUNSELING?
  • FIRST TIME HOME BUYERS
  • PURCHASING WHAT NOT TO DO
  • FINDING THE RIGHT LOAN
  • POOR CREDIT -WE CAN HELP.
  • VA HOME LOANS
  • MANUFACTURED HOMES
  • DOCUMENTS-UNDERWRITING
  • ADVISORS MORTGAGE INFO
  • CONTACT US

REVERSE MORTGAGE LONG ISLAND

3330 Park Avenue, Wantagh, New York 11793, United States

888-843-9797 or 631-804-9044

ADVISORS MORTGAGE GROUP, LLC  Branch NMLS 1833015, 3330 Park Avenue, Suite 1, Wantagh, NY 11793  -- 

CALL NOW: 888-843-9797 or 631-804-9044

Licensed Mortgage Banker. Licensed by the New York State Department of Financial Services, Licensed by the New Jersey Dept. of Banking and Insurance -  FOR CONCERNS OR COMPLAINTS, PLEASE CALL ADVISORS MORTGAGE:   800-778-9044 


NOTE: Website authorization by New York State Dept. of Financial Services is pending. Until this website is authorized, no mortgage loan applications for properties located in New York will be accepted through this site.


NOTE:  © No part of this site, [DOMAIN NAME], may be reproduced in whole or in part in any manner without the permission of the copyright owner. Site formerly Reverse Mortgage Helpline.

 

“CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. 


A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550.

THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”