Mortgages

Questions to Start the Reverse Mortgage Process

The AARP recommends answering the following questions prior to applying for a reverse mortgage:

  1. Do you really need a reverse mortgage?
  2. Can you afford a reverse mortgage?
  3. Can you afford to start using up your home equity now?
  4. Do you have less costly options?
  5. Do you fully understand how reverse mortgages work?
  6. Who else should I involve in considering a reverse mortgage?
  7. Which reverse mortgage counselor should I choose?
  8. Have I given due consideration to all my choices?
  9. When would be the best time to take out a reverse mortgage?
  10. What interest rate should I select? Which reverse mortgage lender should I choose?
  11. How should I use a reverse mortgage?

Reverse Mortgage

What is a Reverse Mortgage?

A Reverse Mortgage is an FHA government insured loan designed for homeowners age 62 and older.

  • Reverse Mortgages enable homeowners to convert a portion of the equity in their home into cash
  • Utilizing the government insured Home Equity Conversion Mortgage (HECM) allows the homeowner to stop making mortgage payments for as long as they live in the home
  • In addition to eliminating all mortgage payments, the homeowner may be eligible for tax-free money based on the amount of equity they have in their home
  • With a reverse mortgage (HECM) the homeowner may also purchase a primary residence. (To qualify, the homeowner must pay the closing costs for the new residence in addition to the difference between the sales price and the amount granted through the HECM)

Reverse Mortgage Quick Links