Backward-Forward or Just Reverse

Reverse mortgages, the trend of late, is gaining momentum as more “baby boomers”, 43 million to be exact become eligible for this program. So this begs the question….who exactly is eligible?

• You must be 62 years of age or older

• You must occupy the home as your principal residence

• You must own the home outright or have a minimal mortgage balance

• There are several different programs types offered to assist with your specific needs. Check with your lender

• Single-family homes, townhouses, condominium units and manufactured homes are eligible.

The amount of cash you receive depends on:

• Your age

• Location of the house

• Your home’s value

• You may choose to receive the cash in a lump-sum, a line of credit line or a fixed monthly loan that you are eligible to receive as long as you stay in your home.

The trend on the reverse mortgage has also brought on an invasion of deceitful salespeople looking to make a quick buck. Aggressive sales tactics may pressure you to make a decision that you don’t fully understand often times with negative results. Speak with your financial institution and your family first before any decision is made. AARP also offers counseling through the HUD network of HECM counselors. You can reach a counselor by calling 1-800-209-8085  weekdays and asking for reverse mortgage counseling.

 Bottom line – Before making a decision that can affect your financial security and your future, be sure to get all the facts.