Home Equity Conversion Mortgages (HECMs): The Federally Insured Reverse Mortgage
The HECM is the only federally insured reverse mortgage, and also the most popular. Its benefits include caps on upfront fees set in place by the Federal Housing Administration (FHA). Find more information about it on the U.S. Department of Housing’s website: http://www.hud.gov/offices/hsg/sfh/hecm/hecmhome.cfm. The same site also offers helpful articles on the basics of reverse mortgages: http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm.
Reverse Mortgage Calculator
One of the most important factors to know upfront before selecting a reverse mortgage is cost. There are fees, taxes, interest rates, and other costs that factor into deciding on the right reverse mortgage. A good reverse mortgage calculator can be found at http://reversemortgageguides.org/reverse_mortgage_calculator/?gclid=CPbP8O2nn6MCFR5ggwodmAmzmA.
Good Sources Of General Information On Reverse Mortgages
One great source of generalized information about reverse mortgages is the American Association of Retired People (AARP). A trusted organization for many years, AARP offers solid advice on reverse mortgages at the following address:
http://www.aarp.org/money/credit-loans-debt/reverse_mortgages/.
Read Up On Prospective Lenders
Before choosing a lender, it is highly recommended that one does his or her research, comparing various banks side-by-side and evaluating how well each bank’s reverse mortgage options work for the individual considering the mortgage. Factors to consider are interest rates, various fees, and whether one trusts the integrity of the particular bank in question. It is also important to keep in mind that not all banks are alike when it comes to things like customer service, abundance of local branches, and company policies. Some suggested starting points include Bank of America (http://reversemortgage.bankofamerica.com/details/what-is-a-reverse-mortgage/reverse-mortgage-eligibility.aspx), Wells Fargo (https://www.wellsfargo.com/mortgage/reverse-mortgage), and MetLife Bank (http://www.metlifebank.com/ReverseMortgage.do). Reversemortgage.org also has a convenient “Locate a Lender” feature (http://www.reversemortgage.org/Default.aspx?tabid=255) which can be helpful for finding localized banks that offer reverse mortgages.
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