Reverse Mortgage 101: What you should know by Bankruptcy Law Network
Recently, I’ve received a host of questions from folks inquiring about reverse mortgage.
Reverse mortgages, generally, are designed for older homeowners seeking to pull equity out of their home today without having to make regular monthly payments. The loan will be due, usually, at time of death of the borrower, or when the house is sold. Rather than reinvent the wheel, I located a great primer on reverse mortgages from the Bankruptcy Law Network. You can click here for the reverse mortgage primer.
When thinking about taking out a reverse mortgage, be sure you understand how it works before you move forward with it. As mentioned in the article, some of the information that exists is incorrect or misguided. Some reverse mortgages, but not all, are insured by the U.S Government, and you can find more information about those by clicking here to visit the Department of Housing and Urban Development Website. A lawyer can help you navigate the documents you are presented, as well as map out the options that a lender may present you with. (For example, with one client I worked with, the lender took some information over the phone, and then sent the homeowner a package with four different loan options, which the homeowner didn’t understand until I walked him through them.)
A reverse mortgage could be a good way for people to use the equity in their homes to lead a more peaceful and enjoyable lifestyle in their later years. Just be sure you understand what you’re getting into.