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Adam Hertz
Reverse Mortgage Consultant
American Mortgage
704 W Sussuex Ave
Missoula, Montana 59801
406.542.0700 x204
adam.hertz@nflp.com
NMLS #266566 
Member NRMLA

A reverse mortgage is about making the most of the equity that you have acquired in your home. Also known as a home equity conversion mortgage (HECM), this popular home loan was created specifically for senior homeowners. It allows you to borrow against the equity you've established in your home without having to repay the loan for as long as you live in and maintain your home. Instead of making monthly mortgage payments, you can recieve monthly payments or a lump sum of cash. Reverse mortgages can help homeowners like you stay in your home and still meet your financial obligations. Whether you'd like to payoff your existing home mortgage, supplement your retirement income, avoid home foreclosure, pay for in-home care, or buy an rv - there are no restrictions on what you can use the funds of your reverse mortgage for. Call Missoula, Montana's reverse mortgage expert, Adam Hertz, at 406.542.0700 x204 for more information.

Top 10 Reverse Mortgage Questions

It can be scary: making a major decision concerning your biggest investment, a decision involving a place that means the most to you. Deciding whether or not a reverse mortgage is right for you takes considerable thought and consideration. We hope the following answers and questions help you in this endeavor. Please feel free to call or email Adam Hertz, your Missoula, Montana reverse mortgage expert if you have any questions.

1. What is a reverse mortgage and do I qualify?

A reverse mortgage is a unique loan that allow homeowner(s) 62 years of age and older to draw on the equity in their home, which is paid to the homeowner(s) in cash. The unique aspect of this loan is that it does not require repayment until the homeowner(s) no longer reside in the residence. Created by The U.S. Department of Housing and Urban Development HUD, this federally insured private loan goes to help those in the senior population meet their financial needs and ease money worries for greater peace of mind.

2. Is my home eligible for a reverse mortgage?

Homes eligible for a reverse mortgage include single-family homes, detached homes, townhouses, and two-to-four unit properties that are owner-occupied. Condominiums must be FHA-approved in order to qualify for a reverse mortgage. American Mortgage can provide you with a list of FHA-approved condos in Missoula and throughout Montana.

3. Why shouldn't I choose a bank home equity loan instead of a reverse mortgage?

Reverse mortgages are so popular because they pay cash that does not need to be repaid as long as you remain in your home. On the other hand, attaining a home equity loan, second mortgage, or home equity line of credit requires you have sufficient income to cover the debt. Plus, you must continue to make monthly mortgage payments. With a reverse mortgage, you do not make monthly mortgage payments and the federally insured loan protects you from foreclosure.

4. How much cash can I expect to get?

The cash you can potentially receive is based on your age, current interest rate, and the appraised home value or FHA's mortgage limits for your area, whichever is less. Additionally, there are several options for securing a reverse mortgage, including the lower cost, lower fee HECM Saver reverse mortgage. Contact Adam Hertz at 406.542.0700 x204 for more information.

5. What happens if I outlive the loan? Will I have to repay the lender?

No. If you or one of the borrowers lives in the home and continues to pay the taxes and insurance, you will not need to repay the loan.

6. Does my house need to be paid off to qualify for a reverse mortgage?

No. You do not need to pay off your home to qualify, and it is not required that you meet an income or credit criteria. In addition, you will continue to hold the title to your home.

7. Do I have to pay taxes on the cash payments I receive?

The cash you receive from a reverse mortgage is not subject to individual income taxation. But, since you hold the title to your home, you are still responsible for property taxes, insurance, utilities, maintenance, and other home-related expenses. Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.

8. How will this loan affect my estate and how much will be left to my heirs?

Once the last surviving borrower dies, sells your home, or no longer resides there as the primary residence, you or your estate is responsible for repayment of the money you received from the reverse mortgage, plus interest and other fees. Any remaining equity belongs to either you or your heirs. The “non-recourse” clause prevents either you or your estate from owing more than the value of your home when the loan is repaid.

9. Should I use an estate planning service to find a reverse mortgage?

HUD advises against using an estate planning service, especially any service that requests a lender referral fee, to procure a reverse mortgage. HUD provides this information free of charge and can direct you to HUD-approved housing counseling agencies that offer referrals to a list of HUD-approved lenders and additional services for free or at a minimal cost. Find a HUD-approved housing counseling agency near you by calling 1-800-569-4287 toll-free.

10. How do I receive my payments?

Reverse mortgage payments can be received in one of six ways:

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