Ask the Expert
The Reverse Mortgage Times is proud to announce that Brian Cooper, a nationally recognized reverse mortgage expert, has agreed to be the moderator of “Ask the Expert”. Brian has been featured on numerous radio and television talk shows as a reverse mortgage expert/advisor.
BRIAN COOPER
THE FORUM
Janice K.
Question:
What if I owe more than my home is worth?
Answer from Brian Cooper: All Reverse Mortgages are “non-recourse” loans, which means that you can never owe more then the value of the home…regardless of the loan balance.
Beverly C. (Washington, DC)
Question: Who pays my property taxes and insurance?
Answer from Brian Cooper: You are required to pay your property taxes and keep current property insurance in place..
Sonya M.
Question: Do I, or my heirs, have to sell the property to repay the loan?
Answer from Brian Cooper: No. Repayment can be accomplished by a refinancing of the existing Reverse Mortgage by a conventional mortgage loan.
Bob D. (Thousand Oaks, CA)
Question: Do I maintain full homeownership with a reverse mortgage?
Answer from Brian Cooper: Yes! You own your home and hold the title the same way you have owned your home with any regular mortgage.
Paul G. (Chicago, IL)
Question: How quickly do my heirs need to pay off the loan after I die? I don’t want the bank to take my home.
Answer from Brian Cooper: Your heirs have 6 months to repay the loan. If the home is not sold, the lender will usually grant 2 3-month extensions. It is very important for the heirs to keep the lender in the loop as to any delays that may come up while trying to sell/refinance the home.
Morton K. (Cleveland, OH)
Question: When I die, will my spouse be protected?
Answer from Brian Cooper: Yes…your spouse will continue to enjoy all of the great benefits that the Reverse Mortgage has to offer.
Morton K.
Question: Brian…how do I contact you to review at my specific situation?
Answer from Brian Cooper: As moderator of this forum, my first priority is to provide honest, unbiased answers to your questions. If you would like me to contact you to discuss your particular scenario, please complete the short information form on this site. I will be happy to assist you in any way.
Rosa B. (Portland, OR)
Question: How do I receive my money?
Answer from Brian Cooper: You have four options: 1. Lump Sum, 2. Monthly Payments (your choice of loan advances for a specific period, or for as long as you live in your home), 3. Line of Credit (unscheduled payments or in installments, at times and in amounts of your choosing until the line of credit is exhausted), 4. Any combination of the three above.
Brian B.
Question: What would be my out of pocket costs?
Answer from Brian Cooper: Typically there is only one, the appraisal which should cost between $300-$450 depending on the property type and the area you live.
Vivian Y.
Question: How long will the process take?
Answer from Brian Cooper: You should be able to close on your Reverse Mortgage within approximately 4 weeks of receiving your counseling certificate.
Greg G.
Question: Can I make payments if I want?
Answer from Brian Cooper: Yes. You may make payments if you want however payments are not required.
Min Y. (Rochester, NY)
Question: What is the interest rate charged?
Answer from Brian Cooper: The interest rate is an adjustable rate tied to the 1-year U.S. Treasury Bond with a low margin. For example, if the 1-year Treasury is 2.00% plus a margin of 1.50 equals 3.50%. There is also a .50% mortgage insurance charge for a total of 4%. Interest is only charged on the loan balance.
Yvonne N. (Philadelphia, PA)
Question: I’ve always planned to leave the house to the kids. Can I still do this?
Answer from Brian Cooper: Yes! Your home will always remain your home and you may leave it to whomever you choose. When you pass away, your heirs will have several options for paying off the loan, including selling your home or refinancing the debt and keeping the home. There is very little difference when this occurs between a traditional “forward” mortgage and a Reverse Mortgage.
Gerald L.
Question:
Are there any restrictions on what I can use with the proceeds of a Reverse Mortgage?
Answer from Brian Cooper: None whatsoever (as long as it’s legal). You can use the proceeds any way you choose. After all, it’s your money.
Rob C. (Scottsdale, AZ)
Question: Who really owns my home?
Answer from Brian Cooper: You do. A reverse mortgage is a lien, just like a traditional mortgage. Repayment is required when the last surviving borrower sells the house, moves away or dies. The remaining equity in your home, if any, belongs to you or your heirs. None of your other assets will be affected by HUD’s Reverse Mortgage loan. This debt will never be passed along to the estate or your heirs.
Harriet N.
Question: Who should I look to for advice?
Answer from Brian Cooper: Decide who you trust, and then discuss your intentions with them. It may be your attorney, a financial advisor, AARP, a family member or close friend. You should feel confident in your decision.
Herb W.
Question: I am 66 years old and own my house. How do I get the process started?
Answer from Brian Cooper: The first step is to find a Reverse Mortgage lender approved in your state. This site, The Reverse Mortgage Times, has done some of the legwork for you in locating government authorized Reverse Mortgage lenders who adhere to NRMLA’s Code of Conduct. You can complete the short form and they will have a qualified Reverse Mortgage Specialist contact you.
