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Reverse mortgage expert answers readers questions during monthly Money Talk$ online chat Date published: 3/6/2010
BY CATHY JETT Gary Onks answered more than 30 questions about what reverse mortgages are and how they work during Tuesday's Money Talk$. He is the regional branch manager of Reverse Mortgage USA in Spotsylvania County. Reverse mortgages are loans for people over the age of 62 that let them tap the equity in their homes without having to repay the money until they, or their estate, sell the house. Below are some of the highlights from the Web chat. A full transcript is available at fredericksburg .com/blogs/whatsin store. From "ck" in Spotsylvania: I currently have a reverse mortgage, but the value of my house has fallen below the balance of the mortgage. If I sell the house as a short sale, am I able to purchase another home and get a new reverse mortgage without having to pay the bank the difference of the short sale? Yes, the beauty of a reverse mortgage is that if the home sells for less than what you owe, FHA will pay the difference to the bank. You have no further obligation on that loan and can get another reverse loan once the first one has been satisfied. From "GC" in Culpeper: I'm still paying off a $30,000 home equity line of credit on a $350,000 house. Can I take out a reverse mortgage, too? I'd like to use part of it to pay off the home equity loan. The house is paid for, otherwise. Yes, you qualify for a reverse mortgage. The amount available for a loan is between 50 and 78 percent of the value of a home based on your age. So you would be eligible for at least $175,000 from a reverse mortgage. From "SF" in Fredericksburg: My late husband and I owned our home free and clear. I remarried several years after his death, and my new husband and I live in my house. What would happen to him if I died first? Would he have to move out if I took out a reverse mortgage? The house is in my name. If the house is in both names, then the loan would be in both names and the surviving spouse could continue to live in the home and enjoy the benefits of a reverse mortgage.
1. Be respectful. No personal attacks.
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