How To Get A Reverse Mortgage

Posted on May 31, 2008
Filed Under Mortgage Smarts |

What is a Reverse Mortgage

By now you’ve no doubt heard the term reverse mortgage and may well be wondering exactly what this is. A reverse mortgage can be a great banking decision you can make and a great thing to do with the equity you’ve built in your house, especially if you are an older person. A reverse mortgage is a sort of loan you can take out against the equity you’ve put into your home for money . These loans don’t have to be repaid unless and until you move out of your home – if Social Security or your retirement fund aren’t quite making ends meet, this can be a great move for you.

Reverse mortgages were first seen in the early 1960’s and have been increasing in popularity ever since. Every year, the number of reverse mortgages obtained increases. In 2006 alone, the U.S. Department of Housing and Urban Development (HUD for short) approved over 62,000 such mortgages, an increase of 85% over the
previous year!

While there are a lot of different types of reverse mortgages available, the most popular by far is a HECM, or Home Equity Conversion Mortgage; available from the Federal Housing Administration. Fannie Mae Home Keeper Private institutions also offer reverse mortgage products, but these are by and large on homes of higher value.

Reverse Mortgage Companies

If you are considering taking out a HECM, you should prepare for this important step by having some counseling. A counselor can go over all of the factors of this transaction, such as alternatives to a reverse mortgage, eligibility and any possible repercussions of a reverse mortgage for your financial situation. They can also tell you when the loan will come due and how the loan is to be
repaid at that time. After counseling, you’ll be able to make an informed and intelligent decision on whether or not to take out a reverse mortgage. The majority if reverse mortgages which are taken out are of the HECM variety.

There are some eligibility requirements you’ll need to meet to qualify for a reverse mortgage:

You must own the property in question
You must reside on the property you wish to take out a reverse mortgage on
You must be 62 years of age or older
You must take part in a counseling and information session beforehand
The amount of the mortgage will be decoded based on the age of the youngest person involved

Reverse Mortgage Online

If you think that you maybe interested in a reverse mortgage, then perhaps it’s time to sit down with a provider of reverse mortgage products and talk more about the options and find out whether you are eligible. Working together with the lender , you can find the reverse mortgage product which meets your needs.

If you feel that this may be a good choice for you then sit down and talk with a lender to see if you meet the qualifications. Together, you and the lender can pick the product that is right for you and your needs.

For the Latest Rates and Information and a FREE DVD on the #1 Rated Reverse Mortgage Bank Lender:

Visit:
Reverse Mortgage Information

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How To Get A Reverse Mortgage

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