Frequently Asked Questions 

Can I make payments if I want to?

Yes!  If you choose to make any payments, it will increase your equity that will be left when the home is sold.

Who is eligible for a reverse mortgage?

You and any co-borrower that is 62 or older

You must live in the home as your primary residence and have equity in your home.

Do I have to own my home free and clear?

NO! If you have an existing loan, you can use your proceeds to pay off this debt.

Will I have to pay fees?

Yes.  Closing costs are typically financed into your loan so your house pays the costs.  Your out of pocket expense is for the credit report and appraisal. This can be credited back to you at closing. The loans have an origination fee, mortgage insurance premium and other normal closing costs.

Are there any ongoing fees after closing?

Yes.  There are monthly servicing and mortgage insurance fees that get added to your loan balance.

How is the interest charged?

Interest is charged ONLY on the amount disbursed to you or on your behalf and is also added to your loan balance.

Can I sell my home whenever I want?

Yes.  There is NO pre-payment penalty and you keep whatever is left after the loan is paid off.

Do I have any responsibilities regarding this loan?

Yes. You and your spouse must live in the home, keep the property in good repair, and make sure your taxes and insurance are paid.  You do all of that anyway!

Will my heirs owe anything if I die?

NO!  Reverse mortgages have insurance to guarantee you would never leave a debt to your heirs.  When you die, the house goes to your estate.  The mortgage is repaid from the sale of the house and all equity is left to the estate. If in the unlikely event the house doesn’t repay the loan, any difference is paid by the insurance fund.

If my home appreciates in value, and the loan is less than that value, who gets the money when the loan is paid off?

Either you or your estate will receive any monies after the payoff of the loan.

What if I go into a nursing home?

You can be gone from the property for up to one year.  The loan is not affected during this time. If you have another person on the loan with you, and they remain in the house, it doesn’t matter how long you vacate the property.

Will this affect Social Security, or Medicare?

NO.

Will this affect Medicaid?

There is a chance this could affect Medicaid depending on your specific situation. It is suggested you consult with Medicaid for further clarification.

Why should I choose Austin Lending Incorporated to do my Reverse Mortgage?

We are a company built on integrity.  We listen to our customers and are able to help them with what is best for THEIR needs.  Most of our team members have over 20 years experience in the field of mortgage lending.  It is a team that can be trusted. We have won the Better Business Gold Star Award for the past 4 years which is quite the feat in the lending business.  This validates our ethics and our relationships with our clients.  Something as important as your finances need to be represented by a company and people you can trust.  We pride ourselves on earning this trust. We believe it makes us one of the best choices in Colorado,  Wyoming, and New Mexico for mortgage lending.