Things You Might Not Know About Reverse Mortgages

These days some seniors say they seem to receive up to fifteen pieces of mail a day advertising reverse mortgages. It's true the ads are everywhere. I'm not on the market for a reverse mortgage, but today I learned some new information when I talked to a Reverse Mortgage Consultant at a Workshop at the Central Coast Seniors Center, Oceano, California.

Suzie Smith, of the Pismo Beach area Wells Fargo, provided statistics showing the leap in the number of reverse mortgages today compared to 5, 10 or 15 years ago. With the aging of the population, and with needs for long-term care in the home or in a facility, medical bills, or other needs, the number of reverse mortgages will continue to climb.

Funds from a reverse mortgage can be used for any expenditure, including food, paying off bills, or taking a long-dreamed-of vacation before getting any older. Sometimes someone uses the money to buy a second home.

A reverse mortgage can be refinanced again later, providing it is worthwhile and not just "churning".

For every reverse mortgage it is a requirement to see an outside mortgage counselor. This third party independent counselor can provide seniors with guidance.

The FHA sets lending limits for each county, with the higher limits being in the most expensive counties. If the property has a mortgage on it, the reverse mortgage can pay that off in addition to providing funds for other expenses.

To get a reverse mortgage someone must be 62 years old, and live in the house as a primary residence.