To find a reverse mortgage counselor near you, search the HECM counselor list or call (800) 569-4287.A reverse mortgage is a special type of mortgage loan only for homeowners aged 62 or older. Watch this two-minute video to see how they work and what you need to consider before you apply. With a reverse mortgage, the amount owed by the homeowner increases, not decreases, over time. There are currently a multitude of banks offering reverse mortgages.
Some of them include FirstBank, Quontic Bank, M%26T Bank, The Federal Savings Bank, Townebank and Goldwater Bank. When you have a regular mortgage, you pay the lender every month to buy your home over time. In a reverse mortgage, you get a loan that the lender pays you on. Reverse mortgages are part of the equity in your home and convert it into payments to you, a kind of prepayment of the equity in your home.
The money you receive is normally tax-free. You usually don't have to pay back the money while you live at home. When you die, sell your home, or move, you, your spouse, or your estate will repay the loan. Sometimes that means selling the house to get money to pay off the loan.
The AAG website receives high marks for ease of use, providing easy access to a free information kit that includes a detailed DVD and email, a basic reverse mortgage rating questionnaire, and lots of direct contact information. Raye from Pensacola, FL writes: “From the first communication with Frank to the closing of my reverse mortgage, he responded very well to my concerns and needs. With these approvals come strict guidelines that One Reverse Mortgage must follow to ensure that its customers are protected. If you get a reverse mortgage of any kind, you get a loan in which you apply for a loan against the equity of your home.
An independent advisor can also help you create a long-term plan depending on the type of reverse mortgage you ultimately choose. This is a particular type of reverse mortgage that the Federal Housing Administration insures and regulates. Outstanding debts and credit history are included in the decisions of reverse mortgage lenders about whether to offer financing and how much they can offer. A Better Business Bureau reviewer identified only as Rick stated that: “We looked at four reverse mortgage lenders and carefully (thoroughly) chose Longbridge.
You must be at least 62 years old, own your home, and your home must be your primary residence to be eligible for a reverse mortgage. Liberty Home Equity Solutions offers a variety of informative articles on what to expect from your HECM application process and the required HUD counseling sessions, along with multiple entries on how a reverse mortgage works. We summarize the pros and cons for you, investigate the costs at the beginning, middle and end of reverse mortgage agreements, and highlight key terms. A reverse mortgage is a complex financial product and you should carefully consider whether it is right for you.
If you find that the purchase comparison process is too time-consuming or too technologically challenging, a reverse mortgage referral service may be a good option.