Are there any restrictions on what I can do with my money?
None whatsoever. You can use the proceeds any way you choose. After all, it is your money.

Do I have to pay income tax on the proceeds?
The proceeds received from a reverse mortgage are loan advances and are not taxable income. We recommend that you consult your tax advisor.

What costs are involved?
The costs associated with getting a reverse mortgage are similar to those of a conventional mortgage. Most costs can be financed from the proceeds of the loan and include origination fee, appraisal, Title Insurance and other closing cost. Our representative will provide a good-faith estimate of the costs involved for you.

How is interest charged?
The interest rate on a reverse mortgage can be adjustable or fixed. Most are tied to the 1-year Treasury Index however, others are based on the Libor Index or Prime Rate. There is a life-of-the-loan cap on the interest rate. You are not charged interest on monies that have been approved but not yet withdrawn.

If there are no payments, what are my responsibilities?
Like all homeowners, you still are required to pay property taxes and provide property insurance and maintain the home. The home must be your principal residence.

How safe are reverse mortgages?
Reverse mortgages are a very safe income option. Borrower(s) continue to own the home. Since the loans are “non-recourse” the lender is limited to the home’s value at the time of repayment. Your heirs are only involved in inheritance, not debt. With a reverse mortgage, you may remain in your home as long as you like. With no mortgage payments to make, this is an enormous relief of the worry of outliving your savings.

Reverse mortgages can help you increase retirement income, provide funds for health care, reduce the impact of and provide funding for estate taxes and maximizes legacy asset transfer.

Who really owns my home?
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 a reverse mortgage loan. This debt will never be passed along to the estate or heirs.

What if there is already a conventional mortgage on the home?
The reverse mortgage is often used to pay off an existing loan. Existing mortgages must be paid off at closing.

What’s the difference between a bank-originated home equity loan and a reverse mortgage?
With a traditional second mortgage, or home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. No credit or income qualifications are required.

What about a home in a "living trust"?
A homeowner who has put the home in a living trust usually qualifies for a reverse mortgage, subject to review of the trust documents.

Will my right to public benefits be affected?
A reverse mortgage loan will not affect your rights under Social Security or Medicare.

Is the process complicated?
We have worked hard over the past several years to simplify the process. We believe the first step is the most important. That's when you and your Financial Heritage Advisor review your goals and objectives and decide on which plan best meets your needs.

We encourage you to consult with your family members and personal advisors. Once you are comfortable that you are making a good decision the rest of the process moves quickly.

Who should I look to for advice?
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. We want you to feel confident in your decision.

Why should I choose award-winning Financial Heritage?
In April 2005, Financial Heritage was awarded first place in the origination of reverse mortgages by the largest servicer of reverse mortgages in the United States. Also, first place for originating the most loans for high valued homes. Our loan counselors are specialists with reverse mortgages. We assign a personal reverse mortgage Advisor to you who will help you every step of the way, from application to closing.

Financial Heritage is a member of the National Reverse Mortgage Lenders Association. We are fully licensed by the Department of Housing and Urban Development (HUD) and are an Equal Housing Lender. We are a proud member of the Better Business Bureau's Reliability Program.

How do I get started?
It's as easy as 1-2-3.

1. Call us to ask questions and learn how a reverse mortgage will work for you.
2. We help with the paperwork. When you are ready to proceed, your personal reverse mortgage consultant will assist you in completing your application.
3. Receive your money.