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3 Things You Should Know About Reverse Mortgages

What you should know before getting a Home Equity Conversion Mortgage.
Modern Times Apr 9, 2019
If you’re considering getting a Home Equity Conversion Mortgage or Reverse Mortgage, you likely have a lot of questions. If you’re over age 62 and have a home, a reverse mortgage can be a great way to get some extra income while keeping your residence.

Here are three things you should know before getting your reverse mortgage.

Lenders Matter

Picking a trusted lender is one of the most important things you can do when getting a reverse mortgage. Experienced lenders will have knowledge from helping many clients, and can address any questions you have.

It may be worth asking other seniors you know what lenders they chose to use for their own reverse mortgages to get a good fit.

You Can Do Some Math Ahead of Time

One question you may have when considering a reverse mortgage is how much value is in your home. Thankfully, you have an easy way to determine that.

Many websites let you use a reverse mortgage calculator online to begin calculating what sort of equity you may be able to draw from for your loan.

Some Reverse Mortgages are Protected

The Federal Housing Admission offers Home Equity Conversion Mortgages that are insured by the government to protect you and your family when taking out a loan.

Plus, HECMs also require an information session as part of their terms, ensuring that you understand the process and can have your questions answered.
A reverse mortgage is a great way to increase your monthly cash flow as you approach retirement.

By seeking out a trustworthy lender and doing some research on your own, you can make a great decision that benefits your personal finances without jeopardizing your living situation.