Reverse Mortgage
Hobby & Recreation Group
Housing Options Provided for the Elderly
HOPE offers Reverse Mortgage Counseling. Get excellent
counseling before you apply for a loan.
Call toll free 888.776.0155 or, if in St. Louis, call 314.776.0155 for
more information or to schedule an appointment.
Information/counseling about Reverse Mortgages helps you learn
about cash income from the equity in your home.
HOPE’s counselors:
The most common type of Reverse Mortgage, secured through a
US government-insured loan, is called a Home Equity Conversion
Mortgage (HECM). Backed by HUD, this loan is very safe, but it is
not right for everyone. HOPE’s counseling will help you decide. Our
HECM counseling helps to make sure that you understand the
details of a HECM and the alternatives.
HUD requires Reverse Mortgage Counseling before applying for a
reverse mortgage loan.
What Is a Reverse Mortgage?
A Reverse Mortgage is a loan against your home that you do not
have to pay back for as long as you live there. It can be paid to you
all at once, as a regular monthly advance, or at times and in
amounts that you choose. You pay the money back plus interest
when you die, sell your home, or permanently move out of your
home.
Most senior homeowners are eligible to borrow 50% to 90% of their
home value through a US government insured loan called a Home
Equity Conversion Mortgage (HECM), a type of Reverse Mortgage.
The loan does not need to be paid back until you move out of your
home. But, this loan is not right for everybody. Everyone’s
situation is unique and may affect decisions about if, how, and
when to use which Reverse Mortgage product. Factors include:
income, assets, health, spousal issues, inheritance desires and
many more. Because there are so many variables, it is critical to
get an in-depth understanding of the Reverse Mortgage product
before applying.
Who's Eligible?
All borrowers must be at least 62 years of age for most reverse
mortgages. Owners must occupy the home as their primary
residence. Single family homes, condos, and homes with up to 4
units also qualify.
How They Work
Reverse mortgage loans typically require no repayment for as long
as you live in your home. But they must be repaid in full, including
all interest and other charges, when the last living borrower dies,
sells the home, or permanently moves away.
Because you make no monthly payments, the amount you owe
grows larger over time. As your debt grows larger, the amount of
cash you would have left after selling and paying off the loan (your
"equity") generally grows smaller. But you can never owe more
than your home's value at the time the loan is repaid. (You can
make repayments, though, if you like.)
Reverse mortgage borrowers continue to own their homes. You are
still responsible for property taxes, insurance, and repairs. If you
fail to carry out these responsibilities, your loan could become due
and payable in full.
What You Get
These loans can be paid to you all at once in a single lump sum of
cash, as a regular monthly loan advance or as a credit line that lets
you decide how much cash to use and when to use it. Or you may
choose any combination of these payment plans.
The amount of cash you can get from a reverse mortgage depends
on your age, your home's value and location, and the cost of the
loan. The greatest cash amounts go to the oldest borrowers living
in the most expensive homes on loans with the lowest costs.
For example: A 70 year old could borrow $123,500 on a $200,000
home (Figures accurate as of 3/9/09).
Warning Signs of Inferior Counseling
counseling before you apply for a loan.
Call toll free 888.776.0155 or, if in St. Louis, call 314.776.0155 for
more information or to schedule an appointment.
Information/counseling about Reverse Mortgages helps you learn
about cash income from the equity in your home.
- Only those 62 or older are eligible,
- The loan is not paid back until you move out, AND
- You have no monthly payments!!
HOPE’s counselors:
- Are experienced, and well trained on the latest developments
in reverse mortgage laws. - Will meet with you in your home or by telephone.
- Are independent of any lender.
- Are MSW social workers as well as Reverse Mortgage
counselors.
The most common type of Reverse Mortgage, secured through a
US government-insured loan, is called a Home Equity Conversion
Mortgage (HECM). Backed by HUD, this loan is very safe, but it is
not right for everyone. HOPE’s counseling will help you decide. Our
HECM counseling helps to make sure that you understand the
details of a HECM and the alternatives.
HUD requires Reverse Mortgage Counseling before applying for a
reverse mortgage loan.
What Is a Reverse Mortgage?
A Reverse Mortgage is a loan against your home that you do not
have to pay back for as long as you live there. It can be paid to you
all at once, as a regular monthly advance, or at times and in
amounts that you choose. You pay the money back plus interest
when you die, sell your home, or permanently move out of your
home.
Most senior homeowners are eligible to borrow 50% to 90% of their
home value through a US government insured loan called a Home
Equity Conversion Mortgage (HECM), a type of Reverse Mortgage.
The loan does not need to be paid back until you move out of your
home. But, this loan is not right for everybody. Everyone’s
situation is unique and may affect decisions about if, how, and
when to use which Reverse Mortgage product. Factors include:
income, assets, health, spousal issues, inheritance desires and
many more. Because there are so many variables, it is critical to
get an in-depth understanding of the Reverse Mortgage product
before applying.
Who's Eligible?
All borrowers must be at least 62 years of age for most reverse
mortgages. Owners must occupy the home as their primary
residence. Single family homes, condos, and homes with up to 4
units also qualify.
How They Work
Reverse mortgage loans typically require no repayment for as long
as you live in your home. But they must be repaid in full, including
all interest and other charges, when the last living borrower dies,
sells the home, or permanently moves away.
Because you make no monthly payments, the amount you owe
grows larger over time. As your debt grows larger, the amount of
cash you would have left after selling and paying off the loan (your
"equity") generally grows smaller. But you can never owe more
than your home's value at the time the loan is repaid. (You can
make repayments, though, if you like.)
Reverse mortgage borrowers continue to own their homes. You are
still responsible for property taxes, insurance, and repairs. If you
fail to carry out these responsibilities, your loan could become due
and payable in full.
What You Get
These loans can be paid to you all at once in a single lump sum of
cash, as a regular monthly loan advance or as a credit line that lets
you decide how much cash to use and when to use it. Or you may
choose any combination of these payment plans.
The amount of cash you can get from a reverse mortgage depends
on your age, your home's value and location, and the cost of the
loan. The greatest cash amounts go to the oldest borrowers living
in the most expensive homes on loans with the lowest costs.
For example: A 70 year old could borrow $123,500 on a $200,000
home (Figures accurate as of 3/9/09).
Warning Signs of Inferior Counseling
- Be wary of counseling that takes less than 60 minutes;
counseling that is brief is often inferior. - Be cautious of telephone counseling, which is often brief, and
can be a more difficult means of learning about the
complexities of a reverse mortgage. - Be careful if counseling does not include printed estimates
related to your situation. - Don’t rely on your lender to refer you to good counseling.
Many lenders attempt to connect seniors to counseling that
does not interfere with the lender's sale. Some lenders steer
clients to brief and inadequate telephone counseling.
HUD's Reverse Motgage Info AARP Reverse Mortgage Info Using a Reverse Mortgage to Help Avoid Foreclosure |
| Helpful Links |
 | |  | |  | |  | |  | |  | |  |