Reverse Mortgages a guide

Some of the rules of getting a Reverse Mortgage,

 From the (National Reverse Mortgage Lenders Association) (NRMLA).

How do you begin to learn about a reverse mortgage? 

You contact a reverse mortgage professional at a lender who specializes in these loans. 

We recommend you contact one who is a member of the National Reverse Mortgage Lenders Association (NRMLA).

All NRMLA members must adhere to a Code of Ethics & Professional Responsibility and the Pledge to Reverse Mortgage Borrowers in which they promise to serve you with integrity and professionalism. Your best interests are our members' only consideration. 

A NRMLA member will:

Present you with a full range of reverse mortgage products that are available from his/her company;

Explain the terms, benefits and costs of each product;

Clearly explain his/her responsibilities to you;

Clearly explain your responsibilities under the terms of a reverse mortgage, including paying property taxes on time, maintaining insurance and maintaining your home in good condition;

Carefully review your income, assets and expenses to help you assess whether you can meet these obligations and determine whether the reverse mortgage is the best financial product for your situation;

Meet with you as frequently as you need and, at your request, also meet with other members of your family or your financial advisors;

Explain that, according to Federal statute, you must complete a reverse mortgage counseling session and provide you with a list of HUD-approved counselors you may contact. (As a means of maintaining a hands-off relationship so that you get unbiased third-party advice, a lender is not permitted to recommend any specific counselor);

Prepare you for making your counseling session the most effective by providing you with questions you might want to ask and information you should confirm.

What is a Reverse Mortgage?

It is a Loan on the equity that has built up over time in your home. This type of loan is sometimes called a non-recourse loan ( no debt is left to the heirs)

If the balance of the loan is less than the market value of the home , there is no debt to the heirs, If there is equity left in the home it is retained by the owner or the heirs.

A reverse mortgage is like any other loan you apply for,  there are a whole bunch of things that are in place to  protect the lender and the homeowner, so there are very specific steps to go through to qualify for a reverse mortgage

You will have a better chance to qualify for this type of loan if your home is mortgage free, you will be able to access a larger amount of money this way.

Have you ever thought about a Reverse mortgage and wondered how they work? 
Are they any good, will they do what you intended it to do, and do you get good value for your home?

Each Country has different regulations and rules to govern the use of reverse mortgages.

over the next few weeks we will discuss the use and value of Reverse Mortgages 

The Canadian reverse mortgage was originally developed to help cash strapped seniors, but was used primarily by well-off seniors. These well-off seniors viewed the reverse mortgage as a way to gradually sell off their home without having to move.
No doubt you have seen the Adds on TV with all kinds of celebrities telling you haw good they are, there will be more discussion on this subject later. 
 The most common use of the reverse mortgage is to pay for their children to purchase their first home or help grandchildren's educations.