219 South Main Street | Cheshire, CT 06410
203-439-9400 | Toll-Free 866-224-2677
Reverse Mortgages
Reverse Mortgage Comparison Chart
A chart of some of the most common questions we get about different types of
HECM's Home Equity Conversion Mortgages (R.M.'s)
| HECM Monthly | HECM Fixed | Purchase | |
| Must we (I) own the house? | yes | yes | yes |
| Can I have an RM if I have a trust or life use provision? | yes | yes | yes |
| Does the title stay in my name? | yes | yes | yes |
| Can my existing mortgage be paid off with the reverse mortgage? | yes | yes | yes |
| Are there income requirements? | no | no | no |
| Do I ever have to make monthly payments? | no | no | no |
| Can proceeds be provided as a line of credit? | yes | no | yes |
| Can I get monthly payments for the rest of my life? | yes | no | yes |
| Do I have to worry if I have problems with my credit? | no | no | no |
| Can I get monthly payments and a line of credit? | yes | no | yes |
| HECM Monthly | HECM Fixed | Purchase | |
| Can I change how I access my funds? | yes | no | yes |
| Can proceeds be given to me as a lump sum? | yes | yes | yes |
| What are the “out of pocket” expenses that I may have to pay? | Counseling and |
Counseling and Appraisal Fees |
Counseling and Appraisal Fees |
| Can I incorporate my closing costs and FHA insurance into my loan? | yes | yes | yes |
| What is the minimum age to take out an RM? | 62 | 62 | 62 |
| Who is responsible for the taxes and the property insurance? | the homeowner | the homeowner | the homeowner |
| Can I get a RM on my multiple-family home (4-units maximum)? | yes | yes | yes |
| Can I get a RM on my condominium? | must meet FHA guidelines | must meet FHA guidelines | must meet FHA guidelines |
| Can I get a RM on my PUD? | yes | yes | yes |
| Can I get a RM on my CO-OP? | no | no | no |
| HECM Monthly | HECM Fixed | Purchase | |
| Do I have to go through a one-time counseling session by phone or in person? | yes | yes | yes |
| Is this RM tax free? | yes* | yes* | yes* |
| Is this program insured by the FHA? | yes | yes | yes |
| Will this affect my Medicare and Social Security? | no* | no* | no* |
| Is there an application fee? | no | no | no |
| Is an appraisal required? | yes | yes | yes |
| How often is the rate set? | Monthly | Fixed | Fixed or Monthly |
| What is the rate set against? (this is the “index”) | LIBOR | Fixed | Fixed or LIBOR |
| What is the margin? | 3.00-3.25 | NA | 3.00-3.25 |
| Will I get a full cost breakdown on my RM? (a “GFE”) | yes | yes | yes |
* You should always consult a trusted advisor on these issues. |
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Reverse Mortgage Specialist call you with specific answers to
your specific situation.