Key Reverse Mortgage Decisions
Homeowners seriously considering a reverse mortgage should ask themselves these key questions:
- Who else should I involve in considering this loan?
- Which counselor should I choose?
- Have I given due consideration to all my choices?
- When would be the best time to take out a reverse mortgage?
- What interest rate should I select?
- Which lender should I choose?
- How should I use this loan?
No one can answer these questions for you. Only you can decide what’s right for you and your situation. But you need to consider these decisions carefully, because you will make them one way or another. And it’s better to do so by thinking them through.
Sharing the decisions
Who else should you involve in making your decisions about a reverse mortgage? You may have a trusted friend or advisor who knows your circumstances — or someone who is generally good at figuring things out or discussing them with you. You may even want to invite such people to your discussion with a HUD-approved counseling agency.
On the other hand, you should be cautious of anyone who seems eager for you to get a reverse mortgage. Be especially alert if that person just happens to have ideas about what you might do with your loan proceeds. Watch out in particular for anyone trying to sell you something, or to get your signature on an agreement to pay them for any purpose.
Remember, we call such people “con men” because they are very good at gaining our confidence and trust. It’s sad but true that the stranger being so nice to you may be more interested in your equity than your well-being.
You also need to think about the impact of a reverse mortgage on your heirs. A loan with “rising debt and falling equity” means there will be less equity left for your heirs. If you get a lot of cash over many years from the loan, there may be little if any left for them.
Many children of reverse mortgage borrowers are pleased that their parents are able to use their equity and remain living in their homes. Often it is a great relief to these children that their parents are able to take care of their own needs; many even encourage their parents to do so.
Whether or not you decide to discuss this matter with your children or other heirs depends on a variety of personal and family factors. You may value their advice or want to know what they think. Or you may think it best not to discuss it before making a decision, or not to tell them after you have closed a loan.
On the other hand, to avoid future misunderstanding, you may want to make a note of your decision in your will. Whatever you decide, the important thing is to give some thought to your heirs. A reverse mortgage can have a substantial impact on your estate. So you need to think through how you want this to become known to your heirs.
If you decide to pursue a reverse mortgage, we invite you to call us toll-free today at 1-800-486-8786 and experience the difference working with America’s Most Trusted Reverse Mortgage Company.