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by on November 2, 2022  in Mortgages / Reverse /
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If you’re at least 62 years old, a reverse mortgage can let you turn part of the equity in your home into cash. You will not have to sell the home or take on additional monthly bills. The reverse mortgage does not have to be paid back as long as you live in your home. You only repay the loan when you sell your home or permanently leave it. Read more information about reverse mortgages.

Types of Reverse Mortgages

The three types of reverse mortgages include: 

  • Federally Insured Reverse Mortgages - Known as Home Equity Conversion Mortgages (HECM)
  • Proprietary Reverse Mortgages
  • Single Purpose Reverse Mortgages

Be sure to watch for aggressive lending practices, advertisements that refer to the loan as "free money," or those that fail to disclose fees or terms of the loan. 

When finding a lender remember:

  • Do not respond to unsolicited advertisements
  • Be suspicious of anyone claiming that you can own a home with no down payment
  • Seek out your own reverse mortgage counselor
  • Never sign anything you do not fully understand
  • Make sure the loan is federally insured

Reporting Fraud or Abuse

If you suspect fraud or abuse, let the counselor, lender, or loan servicer know. You may also want to file a complaint with:

If you have questions, contact your local HUD Homeownership Center for advice. 

Source:  https://www.usa.gov/mortgages#item-36932

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