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Home > Mortgage Center > Products & Programs > Reverse Mortgages > Frequently Asked Questions

Reverse Mortgages – Frequently Asked Questions

Here are some of the frequently asked questions we receive regarding Reverse Mortgages:

• How much money can I receive?
• Are there any restrictions on what I can do with the money I receive?
• What are the costs? 
• Will I lose my government assistance if I get a Reverse Mortgage?
• When does the loan become due and payable? 
• Do I give up ownership of my home? 
• What happens if one of the co-borrowers passes away? 
• Who should I look to for advice regarding a Reverse Mortgage? 

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Q: How much money can I receive?
A: The amount of money you can receive depends upon your age, the value of your home, current interest rates, and the specific Reverse Mortgage plan you choose.  Your Bank of Canton Reverse Mortgage Specialist can help you determine which plan best meets your needs and how much money you can receive.

Q: Are there any restrictions on what I can do with the money I receive?
A: You can use the proceeds from your Reverse Mortgage for any purpose without limitation.

Q: What are the costs?
A: Costs vary from one program to another.  Most Reverse Mortgages have costs including interest charges, origination fees, closing costs, inspections, and insurance. These are paid from the proceeds of the Reverse Mortgage, so there is no immediate burden to you.

Q: Will I lose my government assistance if I get a Reverse Mortgage?
A: The funds from a Reverse Mortgage do not generally affect regular Social Security or Medicare benefits; however, needs-based benefits such as Medicaid or Supplemental Security Income (SSI) may be impacted. You should speak with a tax advisor or our Reverse Mortgage Specialist for additional information.

Q: When does the loan become due and payable?
A: Unless a material default occurs, the Reverse Mortgage loan is due and payable only when you sell your property, no longer occupy your property as your primary residence, or if you pass away.

Q: Do I give up ownership of my home?
A: No, you retain ownership of your home and your home stays in your name.

Q: What happens if one of the co-borrowers passes away?
A: The surviving borrower can continue to own and live in the home and to receive the benefits of the Reverse Mortgage.

Q: Who should I look to for advice regarding a Reverse Mortgage?
A: In addition to speaking with a Reverse Mortgage Specialist at Bank of Canton, we suggest you speak with a financial advisor, an attorney, a family member, or someone else you trust to provide you objective advice regarding your finances.

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Investment products and services are offered through INFINEX INVESTMENTS, Inc. Member FINRA/SIPC. Insurance products are offered through Infinex Insurance Agency of Massachusetts, Inc. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.