Eligible seniors ages 62 and older can use a reverse mortgage to create 澳洲幸运5官方开奖结果体彩网:income for retirement. Before you can get a reverse mortgage, however, you have to complete approved 澳洲幸运5官方开奖结果体彩网:reverse mortgage counseling. This counseling session is designed to ensure that you underst💞and the responsibilities and financial implicati🅺ons involved.

Knowing what to look for can help you☂ find a reputab💮le reverse mortgage counselor.

How a Reverse Mortgage Works

A reverse mortgage allows homeowners to withdraw their 澳洲幸运5官方开奖结果体彩网:home equity, but it’s not the same as a 澳洲幸运5官方开奖结果体彩网:home equity loan or a 澳洲幸运5官方开奖结果体彩网:home equity line of credit (HELOC). When a homeowner takes out a reverse mortgage, they can receive 澳洲幸运5官方开奖结果体彩网:a lump 🔯sum or a series of installment payments t💜hat can be used for medical expenses, day-to-day living expenses, or virtually anything else.

Fees and interest accrue on the reverse mortgage balance, but no payment is due as long as the homeowner lives in the home. If the homeowner sells the home, moves out, or passes away, the entire reverse mortgage balance then becomes payable.

A 澳洲幸运5☂官方开奖结果体彩网:ಌhome equity conversion mortgage (HECM) is a reverse 💙mortgage that’s backed by the federal government. This type of reverse mortgage requires that homeowners:

• Be age 62 or older
• Own their home outright (or have paid off most of the mortgage)
• Live in the home as a 澳洲幸运5官方开奖结果体彩网:primary residence
• Have financial resources to pay certain expenses, including 澳洲幸运5官方开奖结果体彩网:property taxes, 澳洲幸运5官方开奖结果体彩网:homeowners insurance, 澳洲幸运5官方开奖结果体彩网:homeowners association (HOA) fees, 澳洲幸运5官方开奖结果体彩网:maintenance, repairs, and upkeep
• Not be 澳洲幸运5官方开奖结果体彩网:delinquent on federal debts
• Attend U.S. 澳洲幸运5官方开奖结果体彩网:Depa🤪rtme🌠nt of Housing and Urban Development (HUD)-approved counseling

HECMs have closing costs and fees, including 澳洲幸运5官方开奖结果体彩网:mortgage insurance premiums (MIPs). How much you can borrow can depend on the amount of equity that you have in the home, your age and current interest rates.

What Does Reverse Mortgage Counseling Involve?

Reverse mortgage counseling must be completed before a homeowner can apply for an HECM. It’s up to you to choose a lender and schedule a meeting. HUD encourages in-person counseling sessions whenever possible, though it does allow approved counselors to offer 澳洲幸运5官方开奖结果体彩网:phone sessions when a face-to-face meeting isn’t doable.

HUD requires 澳洲幸运5官方开奖结果体彩网:reverse mortgage counselors to discuss certain topics with homeowners. If you’re meeting with a revers📖e mortgage counselor, ꧂you can expect to talk about:

• Your financial needs and circumstances
• Features of a reverse mortgage and how they work
• Financial responsibilities associated with a reverse mortgage
• Reverse mortgage costs, including closing costs, fees, interest, and mortgage insurance
• Tax implications of a reverse mortgage
• 澳洲幸运5官方开奖结果体彩网:Reverse mortgage alternatives
• How to spot and avoid 澳洲幸运5官方开奖结果体彩网:reverse mortgage scams and 澳洲幸运5官方开奖结果体彩网:financial elder abuse

Reverse mortgage counselors can charge a fee for their services. HUD allows reverse mortgage counselors to establish fees that are “reasonable and customary,” though they cannot charge fees in excess of the level of services provided.

So why is this counseling necessary? Reverse mortgage counseling is designed to ensure that homeowners fully understand what they’re agreeing to when taking on a reverse mortgage. For example, while the homeowner may have no obligation to repay the reverse mortgage balance while they live in the home, 澳洲幸运5꧅官方开奖结果体彩网:t🔯hey could leave debt behind for their heirs when they pass away. If you 🦩🐟would rather not do that, you might consider another option for withdrawing equity instead.

Ho𒊎w to Find a Trustworthy Reverse Mortgage Counselor

The easiest way to find a reputable reverse mortgage counselor near you is to search HUD’s reverse mortgage . To be listed on this roster, counselors must complete certain education and training as well as a background check. A HU🐼D reverse mortgage counselor can be located online or by phone ⛦at 1-800-569-4287.

If you’re interested in connecting with a counselor who offers phone meetings, you can also search who provide HECM counseling nationwide. This is a shorter list than the rever🔯se mortgage counseling roster, but you can find reputable organizations to work with here🌄 if you can’t schedule an in-person meeting.

Once you schedule a reverse mortgage counseling session, your counselor should provide you with an informational package and some other documents to help you prepare. These materials are designed to answer questions that you might have about a reverse mortgage and provide an overview of the pros and cons.🐭 During the session, you’ll discuss the detai🅠ls of reverse mortgages and your finances to help decide if getting one makes sense for you.

After the counseling session, you’ll receive a certificate of completion. You’ll need to have this to move forward with your HECM application. Your counselor may also follow up to see if you have any lingering questions about reverse mo🧸rtgages.

Counseling is also available to 🔴澳洲幸运5官方开奖结果体彩网:help people find or maintain su🔯itable housing for the𒀰mselv🅰es and their families. Some of these services are free.

The Bottom Line

Reverse mortgages may be better suited to some homeowners than others. Completing reverse mortgage counseling can help you to decide if it’s an option worth considering or whether something li꧅ke a home equity loan or a HE꧙LOC might be more appropriate. Connecting with a trusted reverse mortgage counselor is the first step, and HUD provides resources to make conducting your search easier. Once you complete counseling, you can then move on to researching the best reverse mortgage companies to find a lender to work with.