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Kathy S. Koops GRI

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What’s a Reverse Mortgage?

filed under: Informational posted on April 20th, 2011

Cincinnati Reverse Mortgages

Lots of questions lately from Cincinnati residents about Reverse Mortgages.

A “reverse mortgage” is also knows as a Home Equity Conversion Mortgage (HECM).  The basics – the property owner’s age must be 62 years old or above and have no mortgage or substantial equity in the property.  HECM’s are different from regular mortgages because no repayment is required until the property owner moves or dies.

It appears that our “parental units” are bombarded with calls and snail mail touting the benefits of using their residences as ATMs and for many it seems like a great way to access needed money. However like any other program- buyer beware.  A HECM may not be cost effective for older seniors thinking about moving within a few years.

The links below may provide some of the answers:

To determine whether you are eligible for a HECM use this calculator.  This calculator is straight-forward and does not require name and phone number to access.  Beware of lenders just trying to obtain information in order to make contact.

Speaking of lenders, the Government has a list of authorized vendors available for the greater Cincinnati area.

Before applying for a reverse mortgage here a 2 helpful links- Federal Trade Commission and an in-depth overview published by AARP.

Reverse mortgages are not for everybody and admittedly I would strongly suggest reading all the information and understanding the “real costs”.  If you have any questions or have experience of using HECM’s- let me know.

More information on Reverse Mortgage

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