Reverse Mortgages: Information You Need to Know
...... that lets you decide how much you want and when; - In any combination of the above.
The amount you get usually depends on your age, your home's value and location, and the cost of the loan. The greatest amounts typically go to the oldest owners living in the most expensive homes getting loans with the lowest costs.
Most people get the most money from the Home Equity Conversion Mortgage (HELM), a federally insured program.
What are the different type of Reverse Mortgages available?
Loans offered by some states and local governments are generally for specific purposes, such as paying for home repairs or property taxes. These are the lowest cost reverse mortgages. Loans offered by some banks and mortgage companies can be used for any purpose.
How much does a Reverse Mortgage cost?
The costs for loans from banks and mortgage companies usually include the following:
- Application fee - Insurance - Origination fee - Monthly service fee - Closing costs - Interest
These costs are usually added to the loan balance (what you owe). HECM loans are almost always the least expensive reverse mortgage you can get from a bank or mortgage company, and in many cases are significantly less costly than other reverse mortgages. Reverse mortgages are most expensive in the early years of the loan and generally become less costly over time. Before getting a reverse mortgage other than a government or HECM loan, carefully consider how much more it will cost you.
What else should I know about Reverse Mortgages?
The federal government requires you to see a federally-approved reverse mortgage counselor as part of getting a HECM reverse mortgage.
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