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 Some Seniors find Reverse Mortgages appealing
Older home owners are looking more towards a reverse mortgage because most of their net worth tends to be tied up in the value of their homes. Prior to entering into a reverse mortgage, home owners should first be aware of some basic facts about their property. How much equity do you have in your home? Keep in mind that if the home is currently mortgaged the owner will need to utilize the proceeds from the reverse mortgage to pay off the existing loan.


Be aware of your borrowing eligibility. The FHA (Federal Housing Authority) regulates the amounts that home owners may borrow when applying for a reverse mortgage. The value of the home as well as the age of the borrower can have an effect on the amount. A good resource to assist potential borrowers with estimates on the borrowing power is the American Association of Retired Persons (AARP).

Keep in mind that closing costs of reverse mortgages are higher than those of conventional mortgages. Fees are subtracted from all proceeds.

HUD ( US Department of Housing and Urban Development) offers free information to people interested in applying for a reverse mortgage. Consumers are advised to avoid people who refer to themselves as "counselors", as these individuals could very well be scam artists.

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