| A
chart of some of the most common questions we get about different
types of Reverse Mortgages (RM's) |
| Question |
Monthly
FHA |
Annual
FHA |
Fannie
Mae |
Cash
Account |
| Must
I (We) own the house? |
yes |
yes |
yes |
yes |
| Can
I have an RM if I have a trust or life use provision? |
yes |
yes |
yes |
yes |
Does
the title stay in
my name ? |
yes |
yes |
yes |
yes |
| Can
my existing mortgage be paid off with the reverse mortgage? |
yes |
yes |
yes |
yes |
| Are
there income requirements? |
no |
no |
no |
no |
| Do
I ever have to make monthly payments? |
no |
no |
no |
no |
| Can
proceeds be provided as a line of credit? |
yes |
yes |
yes |
Call
BCI |
| Can
I get monthly payments for the rest of my life? |
yes |
yes |
yes |
no |
| Do
I have to worry if I have problems with my credit? |
no |
no |
no |
no |
| Can
I get monthly payments and a line of credit? |
yes |
yes |
no |
Call
BCI |
| Can
I change how I access my funds? |
any
time |
any
time |
any
time |
Call
BCI |
| Can
proceeds be given to me as a lump sum? |
yes |
yes |
yes |
Call
BCI |
| What
are the 'out of pocket' expenses that I may have to pay? |
Termite
inspection and appraisal fees |
Termite
inspection and appraisal fees |
Termite
inspection and appraisal fees |
Termite
inspection fee |
| Can
I incorporate my closing costs and FHA insurance into my loan? |
yes |
yes |
yes |
yes
for closing costs - there is no FHA ins. |
| What
is the minimum age to take out a RM? |
62 |
62 |
62 |
62 |
| Who
is responsible for the taxes and the property insurance? |
The
homeowner |
The
homeowner |
The
homeowner |
The
homeowner |
| Can
I get an RM on my multiple-family home? (up to 4-units maximum) |
yes |
yes |
no |
yes |
| Can
I get an RM on my condominium? |
must
meet FHA guidelines |
must
meet FHA guidelines |
yes |
yes |
| Can
I get an RM on my PUD? |
yes |
yes |
no |
yes |
| Can
I get an RM on my CO-OP? |
no |
no |
no |
no |
| Do
I have to go through a one time counseling session by phone
or in person? |
yes |
yes |
yes |
yes |
| Is
this RM tax free? |
yes* |
yes* |
yes* |
yes* |
| Is
this program insured by the U.S. government? |
yes |
yes |
yes |
no |
| Will
this affect my Medicare and Social Security? |
no* |
no* |
no* |
no* |
| Is
there an application fee? |
no |
no |
no |
$500
but this incl. the appraisal fee. |
| Is
an appraisal required? |
yes |
yes |
yes |
yes |
| How
often is the rate set? |
Monthly |
Annually |
Monthly |
Semi-annually |
| What
is the rate set against? (this is the index) |
1
yr T Bill |
1
yr T Bill |
1
month avg CD |
LIBOR |
| What
is the margin? |
1.5%
over the index |
3.1%
over the index |
3.4%
over the index |
5.0%
over the index |
Will
I get a full cost breakdown on my
RM - (A GFE) |
yes |
yes |
yes |
yes |
| *
You should always consult a trusted advisor on these issues |
Call
for more information or click
here and answer a few general questions to have
a qualified Reverse Mortgage Specialist call you with specific
answers to your specific situation. |
