What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets the homeowner take the
equity in his or her home and convert it into cash. No repayment is required until
the borrowers no longer use the home as their principal residence. The most popular
reverse mortgage on the market today is the FHA HECM (Home Equity Conversion
Mortgage) which is federally insured by the government.

Are there any age restrictions?

You must be 62 years of age or older.

Are the payments taxable?

No. The payments are not subject to income taxes because you are just borrowing
on your home equity.

Do I still pay property taxes and insurance?

Yes. You are on the title, and you must pay the taxes, insurance, and upkeep as you
do now. This is just a loan against the property.

Does the lender take my home when I die?

Absolutely NOT! When the last surviving spouse passes away, the loan becomes
due. The heirs or estate will sell the house, pay off the existing mortgage (as you
would have with any mortgage on the property), and keep whatever is left.

Will my children or estate owe more on my home?

No. The house stands for the debt. No debt will ever be passed along to the heirs.

When is the loan due?

When none of the borrowers are remaining in the home, the loan is due. The family
or estate will sell the house and pay off the debt as with any other loan on the property.

Are only single family homes eligible?

No. Single family homes, condominiums, and 2-4 Family are eligible.

What happens if my spouse passes away?

As long as one of you remains in your home, no repayment is required.

Ross Mortgage Corporation

Rachel A. Von Ins
Licensed Loan Originator
NMLS # 196229
rvonins@rossmortgage.com
Cell# 616-886-1507
Office# 616-994-8785
Fax# 231-225-9030