• Helping seniors nationwide
  • Licensed in 42 states
  • Conventional mortgage specialist also available
  • Cash available to you within 2-4 weeks
  • Facing foreclosure?
    Learn how a reverse mortgage can save your home!

National Association of Mortgage Bankers

National Reverse Mortgage Lenders Association

Reverse Mortgage Company
Equity rich? Cash poor? See how a Reverse Mortgage can help!

Facts and Questions about Reverse Mortgages

Some of the most commonly asked questions are:

What is a Reverse Mortgage?Equity rich? Cash Poor? See how a Reverse Mortgage can help!Facts and Questions about Reverse Mortgages

What is a reverse mortgage?
A reverse mortgage is a loan that enables seniors, age 62 and older, to convert a portion of their home equity into tax free income without ever having to make mortgage payments (as long as they live in the home), without having to sell their home, or give up title.

 

Is it possible for my loan balance to become greater than the value of my home?
No. A Reverse Mortgage is known as a non-recourse loan. What this means is that you can never owe more than what the home is worth. If the mortgage balance does become greater than the value of the home, it becomes the responsibility of the bank to assume the difference, not you or your estate. The lender may never seek repayment from your income or other assets.

 

How does a Reverse Mortgage differ from a home equity loan?
A Reverse Mortgage and a home equity loan both convert the equity in your home to useable money. With a home equity loan you are obligated to make monthly payments as long as you have an outstanding balance; whereas with a Reverse Mortgage you never make a monthly payment as long as you live in the home and there are no income or credit qualifications.

In addition, a HECM line of credit, the most popular type of Reverse Mortgages, allows the unused portion of the credit line to grow over time at a rate of ½ % higher than the rate charged to withdraw money. This feature increases the amount of cash available to you!

 

What is a counseling certificate?
Before finalizing your commitment to apply for a Reverse Mortgage, it is federally mandated that you speak with a counselor from an independent government approved agency before completing the application. This process is designed for your own protection. The purpose of the counseling session is to discuss the pros and cons of all your Reverse Mortgage alternatives to ensure that a Reverse Mortgage is the right product for your financial needs.

 

What are the costs involved with a Reverse Mortgage?
The fees for a Reverse Mortgage typically include the cost for an appraisal, title insurance, loan origination fees, payment for homeowner’s insurance and the payment of property taxes if they are currently due, recording fees and FHA insurance. These costs do not have to be a burden to the borrower since they can be added to the amount of the mortgage and paid when the loan is due.

 

Does the lender take ownership of my home?
A Reverse Mortgage lender can never take ownership of your home, nor can the loan require repayment prior to you moving out of the house or settlement of your estate. You will always retain title to your home. The lender places a lien on the home just like a lender would do with a conventional mortgage. The filing of the lien assures that the loan is repaid when the last surviving borrower passes away or if you sell the home.

 

Why should I choose Jacob Dean Mortgage as My Reverse Mortgage company?
You do have choices when you decide to take a Reverse Mortgage. At Jacob Dean Mortgage, each of our senior advisors had extensive training and we are committed to guiding seniors throughout the process. Our goal is to make the experience educational and informative, encouraging interaction with you, family members and trusted advisors. We want you to be completely comfortable with your decision and confident that a Reverse Mortgage will allow you to gain greater financial independence, allowing you to improve your lifestyle and make your golden years the very best they can be.