Q&A

Q&A

Below are some Common Questions specific to the HECM’s.

Additional Q&A for Seniors, Heirs, Advisors and Realtors.

Commonly Asked Questions

What are the differences between a reverse mortgage loan and a home equity loan?

With a second mortgage, or a home equity line of credit, borrowers must have adequate income to qualify for the loan and make monthly payments.  A reverse mortgage loan is different, because it pays you – there are no monthly principal and interest payments.  With a reverse mortgage loan, you are only required to pay real estate taxes, property insurance, utilities and general property maintenance.

What if I change my mind and no longer want the loan after loan documents are signed?

By law, you have three calendar days to change your mind and cancel the loan after you sign your loan documents on a refinance. This is called the “right of rescission.”  The right of rescission will not be applicable to HECM for purchase transactions.

How is the loan repaid?

There are three viable options for repayment. Sell the property, refinance the loan or pay off the loan using a personal account.