Exploring a reverse mortgage
- Posted by admin on September 8th, 2008 filed in Reverse Mortgage Info
- 2 Comments »
Consider options: A traditional mortgage, home equity loan or line of credit might prove best.
Consider costs: Weigh high upfront costs in reverse mortgages. One expense is “non-recourse” insurance, so if you collect more in payments than your house is worth, your heirs don’t pay that balance.
Beware of sales gimmicks: Be especially wary of a broker trying to sell other financial products, such as insurance policies, at the same time.
Beware of scare tactics: Seniors have complained that brokers call them relentlessly, or use fear of financial uncertainties if they don’t buy the mortgage.
Get legitimate help: The law requires all seniors to have an informational counseling session before buying a reverse mortgage. For a list of counselors near you, go to www.hud.gov/offices/hsg/sfh/hecm/hecmlist.cfm or call 1-800-569-4287.
Slow down: If you’re hesitant for any reason, take the time to get help from an independent adviser.
Found here.
Sphere: Related Content
September 8th, 2008 at 8:39 pm
It is so freshing to see warnings out there for senior homeowners. I am a reverse mortgage originator and hear stories about unethical salespeople. I urge all those people involved in the mortgage business to set back and not think of the commission, think about the future. “Will this loan help our rapidly declining economy or actually make it worse for our customer?” What options are best for the customer and not my pocket book.
September 8th, 2008 at 9:24 pm
I appreciate a blog with warnings to senior homeowners about reverse mortgages. As a reverse mortgage originator, I appreciate the education you are giving to seniors. I urge all the salespeople involved in this mortgage business to think not about the commission but about the future. Ask yourself, “will this loan help the senior or can it create issues later on