Explore the Mortgage101 Library
Check Local Mortgage Rates
Loan Program Choices
Use our calculator to find out your estimated monthly payment in advance: Enter the loan amount, interest rate, and length of mortgage.
Try our Mortgage Payment Calculator
Working with a reverse mortgage specialist can provide you with a lot of help when evaluating whether a reverse mortgage is right for you. If you are considering getting a reverse mortgage, here are some of the reasons that you should seek counsel from a reverse mortgage specialist.
1. Explain the Process
No one can explain the process of a reverse mortgage better than a reverse mortgage specialist. The process of getting a reverse mortgage can be a little confusing because it is unlike any other loan product on the market. They will explain to you that you will be receiving regular monthly payments from your lender. You will not have to make any payments to repay the loan once you have received all of the equity in your home. They will also be able to explain how the repayment process works at the end of the loan.
2. Make Sure You Qualify
Not everyone will be able to qualify for a reverse mortgage loan. Before you get too involved in the process of looking at reverse mortgages, you should consult with a specialist in order to determine if you qualify. They will be able to look at your situation and immediately tell you if you will qualify for any reverse mortgage programs. For example, you will have to be at least 62 years old before you can get a reverse mortgage. You also have to have a home that is completely paid off or has a very small mortgage balance. If you do not meet the qualifications for a reverse mortgage, they can save you some time and direct you to another loan product that might be helpful to you.
3. Answer Questions
When looking at reverse mortgage programs, most people have a lot of questions that need to be answered. Talking with a reverse mortgage specialist will allow you to get your questions answered. For example, many people wonder what will happen to them if they outlive the loan. The reverse mortgage specialist will be able to explain to you how the process works. You will not have to make any payments for as long as you want to live in the home. If you sell the house, you will have to repay the lender the amount that you borrowed.
4. Understand the Fees
When considering a reverse mortgage, you need to make sure that you understand all of the fees that you will potentially be paying. There will be closing costs such as the origination fee, mortgage insurance, and service fee. It is important that you understand how the fees work and how they will be paid for. In most cases, you will be able to roll these costs into the loan itself. However, you need to understand that this will eat into the amount of equity payments that you will be able to receive over the life of the reverse mortgage.
- Low Down Payment Loan Qualification
- What Lenders Don't Reveal About Home Equity Loans
- 3 Common Short Sale Mistakes
- 3 Factors that Can Negatively Affect Your Mortgage Application
- Alternatives to Getting a 2nd Mortgage
- What To Do When Mortgages Default
- Home Equity Loans for People with Bad Credit
- Appraisal Basics
- How to Get Approved for an FHA Loan despite Bad Credit