Q. Who are home equity loans designed for?
A. They are designed for homeowners at least 60 years of age with equity in their homes.
Q. Can a home equity loan be taken out if there is already a conventional mortgage on the home?
A. Yes, but any existing mortgages must be paid off at closing. The proceeds from the reverse mortgage may be used for that purpose.
Q. What types of homes won't qualify for a home equity loan?
A. Generally vacation homes or other secondary residences, mobile or manufactured homes not attached to a permanent foundation, rental properties of more than four units and homes on leased lands do not qualify.
Q. How do the monies from a reverse mortgage affect Social Security, Medicare or pension benefits?
A. We can not provide any information regarding this please contact centre link to speak with the FIS officer they are trained to deal with this and can help you but I think you will be pleasantly surprised
Q. What is due when the loan is repaid?
A. any cash advances you have received plus accumulated interest.
Q. Does the lender take the house?
A. This is a misconception; a reverse mortgage is merely a loan against the property. The title remains in your name and the lender is only repaid the loan balance or the home value which ever is less.
Q. If there are no payments, what are my responsibilities as a borrower with a reverse mortgage?
A. You are required to pay your property taxes, keep current property insurance in place, maintain the home, and notify the lender if you will be away from the property for an extended period.
Q. When does the loan become due and payable?
A. The loan is due and payable when the borrower sells the property, permanently leaves the home, or passes away. In the case of a couple, it is the second to move out or die that triggers repayment. Until these events take place you live in the home and make no payments to the lender.
Q. Will the Equity loan eat up all my equity.
A You are limited in the amount you borrow to see that this does not happen and your house is increasing in value all the time. please visit the Senior Australians Equity Release Association of Lenders (SEQUAL) there you will find many of the answers you need.
Q. Do I or my heirs have to sell the property to repay the loan?
A. No, repayment can be accomplished by a refinancing of the existing reverse mortgage by a conventional mortgage loan.
If you have any more questions please contact us. Phone 1800 50 55 33