CT Reverse Mortgage Comparison Chart
| A chart of some of the most common questions we get about different types of Reverse Mortgages (RM's) | ||||
| Question | Monthly FHA | Annual FHA | Fannie Mae | Cash Account |
| Must I (We) own the house? | yes | yes | yes | yes |
| Can I have an RM if I have a trust or life use provision? | yes | yes | yes | yes |
| Does
the title stay in my name ? |
yes | yes | yes | yes |
| Can my existing mortgage be paid off with the reverse mortgage? | yes | yes | yes | yes |
| Are there income requirements? | no | no | no | no |
| Do I ever have to make monthly payments? | no | no | no | no |
| Can proceeds be provided as a line of credit? | yes | yes | yes | yes |
| Can I get monthly payments for the rest of my life? | yes | yes | yes | yes |
| Do I have to worry if I have problems with my credit? | no | no | no | no |
| Can I get monthly payments and a line of credit? | yes | yes | yes | yes |
| Can I change how I access my funds? | any time | any time | any time | Call Us |
| Can proceeds be given to me as a lump sum? | yes | yes | yes | yes |
| What are the 'out of pocket' expenses that I may have to pay? | Appraisal fees | Appraisal fees | Appraisal fees | Appraisal fees |
| Can I incorporate my closing costs and FHA insurance into my loan? | yes | yes | yes | yes for closing costs - there is no FHA ins. |
| What is the minimum age to take out a RM? | 62 | 62 | 62 | 62 |
| Who is responsible for the taxes and the property insurance? | The homeowner | The homeowner | The homeowner | The homeowner |
| Can I get a RM on my 1-4 family home? | yes | yes | no | yes |
| Can I get an RM on my condominium? | must meet FHA guidelines | must meet FHA guidelines | yes | yes |
| Can I get an RM on my PUD? | must meet FHA guidelines | must meet FHA guidelines | must meet Fannie Mae guidelines | yes |
| Can I get an RM on my CO-OP? | no | no | no | no |
| Do I have to go through a one time counseling session? | yes | yes | yes | yes |
| Is this RM tax free? | yes* | yes* | yes* | yes* |
| Is this program insured by the U.S. government? | yes | yes | no | no |
| Will this affect my Medicare and Social Security? | no* | no* | no* | no* |
| Is there an application fee? | no | no | no | $500 but this incl. the appraisal fee. |
| Is an appraisal required? | yes | yes | yes | yes |
| How often is the rate set? | Monthly | Annually | Monthly | Semi-annually |
| What is the rate set against? (this is the index) | 1 yr T Bill | 1 yr T Bill | 1 month avg CD | LIBOR |
| What is the margin? | 1.5% over the index | 3.1% over the index | 3.4% over the index | 3.5% over the index |
| Will
I get a full cost breakdown on my RM - (A GFE) |
yes | yes | yes | yes |
| * You should always consult a trusted advisor on these issues | ||||
