A reverse mortgage is a type of loan that allows homeowners who are at least 62 years old to borrow against their home equity and receive cash or a line of credit. Unlike a regular mortgage, they don’t have to make monthly payments until they move out, sell the house, or die. The loan balance grows over time, while the home equity decreases.
Reverse mortgages can be a useful way to supplement retirement income, eliminate monthly mortgage payments, and stay in the home for as long as possible. But they also have some drawbacks and risks that borrowers should be aware of before applying.
One of the most important steps in getting a reverse mortgage is to find a reputable and trustworthy lender who can offer you the best deal and service. There are different types of reverse mortgages with various payment methods, but most are Home Equity Conversion Mortgages (HECM), which are backed by the federal government.
To qualify for a HECM, you must meet certain requirements, such as being at least 62 years old, living in the home as your primary residence, having sufficient home equity, and completing a financial assessment and counseling session with a HUD-approved counselor.
To find a reverse mortgage lender near you, you can use the following tips and resources:
• Use the HUD Lender List Search. This is an online tool that allows you to locate lenders in your state who are members of the National Reverse Mortgage Lenders Association (NRMLA), licensed to originate reverse mortgages, and have signed NRMLA’s Code of Conduct & Professional Responsibility(reversemortgage.org).
• Use online directories and reviews. There are many websites that offer reverse mortgage directories and reviews, such as ConsumerAffairs , U.S. News , and Bankrate . These websites can help you compare different lenders based on their reputation, accreditation, customer feedback, loan options, rates, and fees(consumeraffairs.com)(money.usnews.com) .
• Ask for referrals and recommendations. You can also ask your friends, family, neighbors, or financial advisors if they have any experience or knowledge of reverse mortgage lenders near you. They may be able to give you some personal insights or suggestions based on their own situations.
• Contact multiple lenders and get quotes. Once you have a list of potential lenders near you, you should contact them directly by phone or email and ask for quotes. You should compare different quotes based on the loan amount, interest rate, fees, closing costs, payment options, and any other relevant information. You should also ask questions to clarify any doubts or concerns you may have about the loan.
A reverse mortgage is a type of loan that allows senior homeowners to borrow against their home equity and receive cash or a line of credit. Finding a reverse mortgage lender near you can be challenging, but you can use online tools, directories, reviews, referrals, and quotes to help you narrow down your options and choose the best one for you.