Answers About Reverse Mortgages

As a real estate agent, I often have people ask me for referrals to mortgage professionals when they want to buy a home, refinance a mortgage, buy a vacation property, or buy an investment property.

Lately, I've been getting more requests for information about "Reverse Mortgages", so I decided to do some research, and see what information I could find to share with all of you.

First of all, the main thing is to do your research first! Don't just decide "this is what I need right now" and rush in.

Learn what questions you need to ask, and learn about the programs available. There are several types of reverse mortgages, and they aren't for everyone. You can even buy a new home using a Reverse Mortgage. When contemplating a Reverse Mortgage for any reason, the first consideration is that the youngest homeowner must be at least 62 years old.

From the Reverse Mortgage Guides website:

Reverse Mortgage Guides is a reverse mortgage education site that explains the pros and cons of FHA reverse mortgages. We publish articles and tools for seniors who are considering a reverse mortgage and want to become fully educated before making a decision.

A reverse mortgage is often used to fully pay off an existing mortgage and thereby cease making monthly payments. The second most common use, according to the AARP's 2006 survey, is to pay for medical and daily living expenses.

The website has many articles explaining reverse mortgages. You will want to spend time reviewing all of them. In addition, they discuss "Six Situations When a Reverse Mortgage Should Not Be Used".

The HUD / FHA program also certifies housing counselors all across the country to give homeowners impartial education about reverse mortgages.

Another informative website is from the National Reverse Mortgage Lenders Association (NRMLA).

According to their website: "Established in 1997, NRMLA is the national voice for lenders and investors engaged in the reverse mortgage business. NRMLA fulfills several roles, which include educating consumers about the opportunity to utilize reverse mortgages, training lenders to be sensitive to the needs of older Americans, developing Best Practices and enforcing a Code of Conduct to make sure lenders participating in the program treat seniors respectfully, and promoting reverse mortgages in the media."

Here are some links to some very informative websites.


Reverse Mortgage Guides

Reverse Mortgage Eligibility

FHA/HUD Certified Reverse Mortgage Counseling (FREE)

When Is A Reverse Mortgage a Bad Idea?

If you are thinking that you or a family member has interest in a Reverse Mortgage, or even buying a new home using a Reverse Mortgage, these informative websites should be helpful. I do know several trustworthy mortgage folks who specialize in doing Reverse Mortgages, both for existing residences, or for a new purchase.
Contact me at leannefinlay@gmail.com