If you’re a retired homeowner, you might have wondered about reverse mortgages.
Reverse mortgages, also known as Home Equity Conversion Mortgages (HECM), let Americans 62-and-older convert part of their home equity (wealth) into cash, a monthly check, or a line of credit.
To help you better understand reverse mortgages, the National Reverse Mortgage Lenders Association (NRMLA) has released a new series of tools to aid potential borrowers.
1. Reverse Mortgage Self-Evaluation: A Checklist of Key Considerations
If you’re wondering if a reverse mortgage could be a good option, read and answer this series of seven questions. It’s important to think carefully about reverse mortgages before proceeding with your application, and these questions are a great place to start.
Link to self-evaluation
2. What You Need to Know About Reverse Mortgages After Closing
If you decide to apply for a reverse mortgage, you’ll have a range of responsibilities after your loan closes. NRMLA created a helpful guide that breaks down your responsibilities, such as paying property taxes, homeowners association fees, and insurance.
3. What to Do When Your Reverse Mortgage is Due
A common concern about reverse mortgages is paying the loan back. This guide offers easy-to-understand information about the payback process (including information for spouses and adult children). Even if you’re just considering a reverse mortgage, knowing this information can help you make a more informed decision.
Link to guide
It’s important to completely understand reverse mortgages before applying
If you’re 62 or older and have significant home equity, there could be benefits from a reverse mortgage. However, reverse mortgages aren’t for everyone and it’s important to carefully research them before applying.
The NRMLA tools listed in this blog post can help you with this process.
If you have additional questions on reverse mortgages, contact one of our friendly loan originators today!