HECM Counseling Questions
What should I discuss with my Portland Oregon housing counselor if I’m contemplating applying for a reverse mortgage?
Below are some things you might want to discuss with a housing counselor:
- How does a reverse mortgage loan work?
- Would it be more effective for you to take out the funds as a line of credit, in monthly installments, or in a lump sum?Based upon which of these three basic options you select, you could be qualified for an adjustable rate or a fixed interest rate. Which will work better for you?
- What fees are you going to have to pay up front, before you can get the reverse mortgage? Examples of common fees are mortgage insurance, loan origination, credit report, property inspection, appraisal, and title insurance.
- How much are you going to need to pay in monthly fees? What will happen if you need to leave or want to sell the home?
- If somebody else is residing in the home with you, could they remain in the property if you passed away or needed to move into a care home?
- How do you pay your real estate taxes and insurance?
- What other reverse mortgage specifications are usually very important to go over?
If you ever discussed reverse mortgages with a mortgage lender prior to speaking with a counselor, tell your counselor about that conversation. Did the loan originator recommend a specific loan type? Did the mortgage company try to sell you something along with the reverse mortgage, or impose any conditions? Your counselor provides a neutral 2nd opinion.
Tip:
Don’t hide anything from your counselor. Your counselor is there so that you can make the best decision you can, but they can only get the job done if you inform them of your full circumstance. You will get reverse mortgage counseling in person in Portland Oregon or on the phone.
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