Reverse Mortgage Essentials
Four important things you should do before getting a Reverse Mortgage:
1. Determine if you really need a Reverse Mortgage or if another type of loan would be better for you. Depending upon your needs and your financial situation, you may be able to meet your goals with another, less costly financial solution than that provided by a Reverse Mortgage.
2. See a HUD approved Reverse Mortgage counselor-free of charge – to help youdecide if a Reverse Mortgage is for you, or to help you choose among the different types of Reverse Mortgages.
3. Shop around and compare! Not all Reverse Mortgages are created equal. They vary substantially in how much cash you can get, what they cost and otherfeatures.
4. Consider whether a Reverse Mortgage might make you ineligible for any public benefits you now receive or may be eligible to receive in the future. Forexample, if you currently receive or expect to be eligible for any "needbased" benefits such as Medicaid, MediCal, or Supplemental Social SecurityIncome (SSI), Reverse Mortgage payments will have to be structured so thatmonthly payments will be spent within the month they are received. If not,such payments will be considered "income," and may make you ineligible forpublic benefits. You should contact your benefits provider to ask about how aReverse Mortgage may affect your eligibility.
Source: Bruce Williams, Newspaper Enterprise Assn.
