Reverse Mortgage Loan Blog

Before you sign on the dotted line for a reverse mortgage, make sure you know all of the facts.

Reverse mortgages may be a great idea for some seniors, but officials warn be careful if you’re looking into this plan, because the consequences could effect your family.

So what is a reverse mortgage?

It is only for those 62 years or older who own a home and who have little or no mortgage left. Homeowners will receive an up-front cash payout with no obligation to repay the loan. It lets seniors live in their own homes with no monthly mortgage payment and have a few extra dollars a month to enjoy retirement.

It’s a good idea for those who are not concerned about leaving behind property for their heirs. But, everyone should know that a reverse mortgage can reduce or eliminate your inheritance, because now the mortgage company or lender owns the home. Robin Atherton is a local mortgage broker. She says its important to consult your family before making this financial change.

“They have to be educated about the process. It is a very good if their children or heirs are educated about the process. The more everybody understands the better.”

If you’re interested in learning more about reverse mortgages you can contact the U.S. Department of Housing and Urban Development at 1-800-4287 or Atherton suggests visiting the www.fundingseniors.com.

Officials also warn if you are approached about a reverse mortgage by a lender and feel pressured or if something sounds fishy, you should report it to your state attorney general’s office.

Found here.

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