Reverse mortgages are a great way for seniors to pay for care they need later in life, but there are some things they should consider before taking out the loan. In order to qualify for the Federal Housing Administration’s reverse mortgage loan program, borrowers must be at least 62 years old and must occupy the home as their primary residence. If something happens that leads a borrower to...
Reverse Mortgage or a Home Equity Line of Credit?
Seniors looking to tap into their home equity have a few different options available in the marketplace today. These choices include a reverse mortgage as well as a home equity line of credit (HELOC). Both options allow borrowers to access the equity in their homes, but have different features and requirements in order to obtain the loans. Similar to any other mortgage product, both options...
What Reverse Mortgage Products Are Available?
Depending on your individual situation, there are several different types of Home Equity Conversion Mortgage (HECM) reverse mortgage products available in the marketplace today. In order to qualify, all borrowers must be at least 62 years old and have a certain amount of home equity. Each product requires the borrower to receive reverse mortgage counseling prior to obtaining a loan insured by the...
What Consumer Protections Are Built into Reverse Mortgages?
Because a reverse mortgage is a financial product intended for seniors aged 62 or older that involves a major life decision, some safeguards have been built into the product to protect older consumers and their assets. From making sure potential borrowers understand what a reverse mortgage loan is and how it works in their particular situation, to controlling the costs of originating the loan...
What Do My Parents Need to Know About Reverse Mortgage?
A growing number of seniors are using reverse mortgages to age in place. If your parents are looking into obtaining one, there are some things you should make sure they understand. The most popular reverse mortgage product in the marketplace is the Home Equity Conversion Mortgage (HECM), which is available to homeowners who are at least 62 years of age. The HECM is insured by the Federal Housing...