NMLS 458780
NMLS 458780
Western Lending REVERSE MORTGAGE EXPERTS
Western Lending      REVERSE MORTGAGE EXPERTS

Frequently Asked Questions

  1. What is a reverse mortgage?
    • A reverse mortgage is a home loan that allows you to draw some of the equity in your home in the form of cash that you can use any way you see fit.
  2. Why are reverse mortgages so expensive?
    • Reverse mortgages are no more expensive than any other FHA loan.  Because the loans are regulated and insured by the Federal Housing Administration they are required to have mortgage insurance.  Mortgage insurance requires an initial payment at closing which is sometimes confused with a lender imposed fee.
  3. Why are there no payments on a reverse mortgage?
    • There are no payments because the interest that is due every month is simply added to the loan and is part of the balance that is eventually paid back.
  4. When I sign a reverse mortgage does the bank take ownership of my home?
    • No.  The bank does not take ownership of your home.  Please remember that, as the owner of the home, it is your responsibility to keep current on the property taxes, homeowners insurance and to maintain the condition of the property.
  5. What happens to my home when I pass?  Does the bank or the government take it then?
    • Neither the bank nor the government takes you home when you pass.  The house belongs to you and you decide who gets it in your will.
  6. When is the loan paid back?
    • The loan is paid back when the last borrower leaves the home for good.  This can occur when they pass away but it can also occur if they sell the home while they are still alive.
  7. How is the loan repaid?
    • Usually, the loan is repaid from the equity in the home when it is sold.
  8. What if there is not enough equity to pay off the loan?  Do my kids get stuck with the debt?
    • No, they don't.  All reverse mortgage loans are insured by the Federal Housing Administration.
    • Neither you, nor your heirs, can ever owe more that the house is worth.
  9. What if one of my kids want to keep this house after I pass?
    • If one of your heirs wishes to keep the home they need only pay off the balance due on your reverse mortgage.
    • They can do this with their own funds, by taking out a new loan on the property or a combination of the two.
  10. Will I get stuck paying income taxes on the money I take out?
    • No.  There is no income tax due on money you take from a reverse mortgage.
  11. Will I lose my Social Security or Medicare benefits if I take a reverse mortgage?
    • Not at all.  Social Security and Medicare benefits are not affected by a reverse mortgage.

 

 

 

 

 

 

 

 

Contact Us Today!

WESTERN LENDING

NMLS # 458780
17644 Chatsworth St
Granada Hills, CA 91344


Phone: +1 818 522-5018+1 818 522-5018

E-mail: richard@westernlending.net