Reverse Mortgages

 

Getting A Good Deal

1.      Shop Around
to compare your options and the offered terms.
 

2.       Learn as much as you can
about reverse mortgages before you talk to a counselor or lender. It will help you ask more
informed questions, which could lead to a
better deal.
 

3.       If you want to make a home repair or improvement or need help paying your property taxes,
you may want to find out if you qualify for any
low-cost single-purpose loans that may be
available in your area. Area Agencies on Aging
(AAAs) generally know about these programs.

Ask the Office on Aging for information
about available “loan programs for home repairs
or improvements,” or “property tax deferral” or “property tax postponement” programs.
 

5.       If you live in a higher-valued home
you may be able to borrow more from a
proprietary reverse mortgage. But it generally
will cost more.

 

Be a Savvy Consumer

Be Cautious

If anyone tries to sell you something, like an annuity, and suggests that a reverse mortgage would be an easy way to pay for it. If you don’t fully understand what they’re selling, or you’re not sure you need what they’re selling, be even more skeptical.

 

Shop Around

Keep in mind that your total cost would be the cost of what they’re selling plus the cost of the reverse mortgage. If you think you need what they’re selling, shop around before you buy.

 

You Have 3 Business Days to Decide

No matter why you decide to take a reverse mortgage, you generally have at least three business days after signing the loan documents to cancel it for any reason without penalty. Remember that you must cancel in writing. The lender must return any money you have paid so far for the financing.


Consider All Your Options

Whether a reverse mortgage is right for you is a big question. Consider all your options. You may qualify for less costly alternatives. Contact the following organizations for more information:

             Reverse Mortgage Education Project

AARP Foundation
1-800-209-8085
http://www.aarp.org/revmort/list
 

U. S. Department of Housing and Urban Development (HUD)
888-466-3487
http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm

 

Federal Trade Commission
ftc.gov/bcp/conline/edcams/credit/
877-382-4357)