For many retirees, a reverse mortgage is a feasible option to living the golden years they always dreamed of, or for others it may be a path to living within a budget without the constraints and worry of excessive financial distress. In order to qualify for a reverse mortgage, the individual must own their home, be at least 62 years old, and have some equity in the home. In general, the older the borrower (or the youngest borrower in the case of married couples) and the more valuable the home, the more reverse mortgage funds will be available. Other factors also come into play, such as: the appraised home value, interest rates, and the amount of equity in the home. Once a basic understanding of how a reverse mortgage works, the next step is finding a lender.
Where to find a lender?
Reverse mortgages are marketed in every possible way. Television, radio, mailers, internet, etc. Although not all of these methods ensure trouble, some of them can be scams. When seeking a reverse mortgage lender, it’s important to speak with people you trust. Ask around at your bank or financial institution. Speak with a financial or retirement adviser. Talk with neighbors or friends who have utilized a reverse mortgage. Seek information from the local Chamber of Commerce or Senior Centers. Utilize other resources that may be available in your community.
What to look for in a reverse mortgage lender?
Working with a reputable reverse mortgage lender is critical. It can be risky to get involved with a lender who does not offer all the details or who is just looking to make a “quick sell”. A reputable lender will have strong connections in the community, working closely with a network of professional organizations.
Accreditation and ratings?
Seek out a lender that is a member of the National Reverse Mortgage Lenders Association (NRMLA). Members of the NRMLA must conform to a strict code of lending ethic. Look for a lender that is affiliated with the Better Business Bureau (BBB), where you can also learn of any complaints against the company.
Follow your gut.
When it comes down to it, always follow your gut. Just because a lender may meet all this criteria doesn’t mean they will be right for you. If you do not feel comfortable or feel your questions are not being adequately answered, there is nothing wrong with seeking out a different lender.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, and Front Range areas of Colorado. Click here to contact Jan and learn if reverse mortgage is right for you.
We currently have a reverse mortgage but it’s from 2009 & we need to redo it to get rid of all the fees that they can’t take now. Our certificate runs out July 17th. It is our second one & you don’t even want to know the delays. I’ve had countless bids from Ouicken-AAG–All reverse -a lot. Kathy Said we should change becuz we would no longer have all the fees. So of course everyone started to compete for the loan & supposedly offer all this stuff free & is tacked on to your loan. I have a list from the analyst of lenders in Denver. I hesitate to put my info out their again becuz they bombard you & it is more confusing then helpful. So if you can help I would appreciate it But as I said my couceling runs out again on the 17th & we’ve done it twice already. My e mail is [email protected] but it always says it’s not valid half the time. But it really is mine. our phone is 303-635-1095–cell is 720-365-9060. Thank you Carolyn McIntosh
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I’ve been really curious about reverse mortgages and what they entail, so I’m really glad that I found your article! You talked about a reverse mortgage being able to give more money to older couples who have more valuable homes. I’m going to have to see if getting some reverse mortgage help would be something that we could do in the future, but hopefully we’ll be doing okay by then! Thank you!