The proceeds from a reverse mortgage can
be used for anything: daily living expenses; home repairs and home
improvements; medical bills and prescription drugs; pay-off of existing
debts; education; travel; long-term health care; retirement and estate
tax planning; and other needs you may have.
There are unlimited uses for the proceeds of a reverse mortgage,
however, there are 3 common categories of usage.
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Needs Based:
Monthly Expenses, Property Taxes, Pay Medical Expenses, Food,
Utilities |
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Wants Based:
Travel, Entertainment, Enjoyment of the Golden Years |
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Financial Planning:
Long-Term Insurance, Annuities, Life Insurance, Supplemental Health
Insurance |
 The proceeds from a reverse mortgage are available as a lump sum, fixed
monthly payments for as long as you live in the property, a line of
credit; or a combination of these options.
The amount of benefit that you will qualify for, will depend on your age
at the time you apply for the loan, the type of reverse mortgage you
choose, the value of your home, current interest rates, and for some
products, where you live. As a general rule, the older you are and the
greater your equity, the larger the reverse mortgage benefit will be.
The costs associated with getting a reverse mortgage are similar to
those with a conventional mortgage, such as the origination fee,
appraisal and inspection fees, title policy, mortgage insurance and
other normal closing costs. With a reverse mortgage, all of these costs
can be financed as part of the mortgage.
 You must first meet with an independent reverse mortgage counselor
before obtaining a reverse mortgage. One of our Reverse Mortgage
specialists will help you locate a Counselor, or you can visit
HUD's website and search for an approved "HECM" Counseling Agency.
The counselor's job is to educate you about reverse mortgages, to inform
you about other alternative options available to you given your
situation, and to assist you in determining which particular reverse
mortgage product would best fit your needs if you elect to get a reverse
mortgage. This counseling session is at no cost to you and can be done
in person or over the telephone.
To obtain a quote on the amount available to you,
simply contact one of our Reverse Mortgage Specialists at 800-794-9796,
or you can fill our our online application.
There is no cost or obligation. You will be provided with a Mortgage
Comparison Chart that will allow you to view all of your options.
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The
NRMLA Consumer Guide to Reverse Mortgages
NRMLA's first
consumer guide to help educate senior's about reverse mortgages.
Using Reverse Mortgages for Health Care: A NRMLA Guide for Consumers
This guide helps explain how reverse mortgages
can be used to help pay for your health care needs and preserve your
financial security.
Just the FAQs: Answers to Common Questions About Reverse Mortgages
This guide lists the most common questions asked by consumers about reverse mortgages—with the answers from the National Reverse Mortgage Lenders Association. The questions are broken into three groups: those appropriate to ask before getting a reverse mortgage; those applicable during a reverse mortgage; and those applicable at the end of a reverse mortgage.
FannieMae's Money From Home
A detailed guide to understanding reverse mortgages.
AARP's "Home Made Money"
A Consumer's Guide to Reverse Mortgages"
Considering a Reverse Mortgage?
Review these 5
steps to see if a Reverse Mortgage is right for you. |
