HECM Counseling Questions To Ask

What do I need to discuss with my HECM housing counselor if I’m looking at getting a reverse mortgage?

The following are some things you might want to discuss with a housing counselor:

How does a reverse mortgage loan work? Will it be more effective for you to get the money as a line of credit, in monthly installments, or in a lump sum?
Based upon on which of these three standard options you decide on, you may be qualified for an adjustable rate or a fixed interest rate. Which will work better for you?
What expenses are you going to need to pay at the start, before you will get the reverse mortgage? Examples of common fees are mortgage insurance, loan origination, a credit report, house inspection, appraisal, and title insurance.
How much will you have to pay in fees each month? What happens if you have to leave or want to sell the home?
If somebody else is living in the home with you, could they stay in the house if you passed away or had to move into a elderly care facility?
How will you pay your home taxes and insurance?
What other reverse mortgage conditions are important to go over?
If you ever discussed reverse mortgages with a mortgage lender before talking to a counselor, tell your counselor about that conversation. Did the lending company propose a particular type of loan? Did the loan originator attempt to sell you something in addition to the reverse mortgage, or require any conditions? Your counselor can provide an impartial 2nd opinion.

Tip:

Do not conceal anything from your counselor. Your counselor will there be to assist you to make the best decision you can, but they can only do their job if you tell them your entire situation. You may get reverse mortgage counseling face-to-face or by telephone.

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