Reverse Mortgage Question

[AndyA]

I am trying to learn more about the reverse mortgage counseling process and figure out where I could fine a good counselor. I was reading a site I was referred to called www.reversemortgageabcs.com that walked through the process of getting a reverse mortgage, however, it did not list counselors. Does anyone know of a good resource or have any idea how much a counselor costs? Are the costs borne by the lender in the event I do not proceed with my reverse mortgage or do I have to go out of pocket? Any insights would be great. Thanks!

 

[FlyingRon]

A counselor is a requirement for HUD backed reverse mortgages.
HUD will give you a referal if you call their 800 number.

http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm

 

[garrula lingua]

AARP also has articles on reverse mortgages and a calculator:
http://www.reversemortgageadviser.com/calculator.asp?cid=701500000009SruAAE&pid=Yahoo&camp=Texas&kw=NA&ag=General&OVRAW=aarp reverse mortgages&OVKEY=aarp reverse mortgage&OVMTC=standard&OVADID=2355819513&OVKWID=24736392013

... or just google 'aarp reverse mortgages'


... be aware they are expensive. Check out all alternatives.

 

[Cedrus]

Think your potential RM lender will have a list of approved counselors. It can be done in person or over the phone. It takes 45-60 minutes and you will receive a certificate indicating you went thru the process.

No cost to you. The lender will not process your application until they have the Certificate in hand.

As an aside, we are doing a RM now. We went with a private, non government, fixed rate loan and did not go with mortgage insurance. We are going to draw everything out at the closing and leave nothing in an account to access later. So why do we need to pay for it? Still a non-recourse loan.

Go to www.aarp.org and enter "homemade money" in the search box.