728x90
my iParenting
From Our Sponsors
e-newsletters
Sign up to receive our free weekly e-newsletters

new terms of use
new privacy policy
award-winning products
The iParenting Media Awards program helps parents find the best products for their families.
Home › Articles › Money Management › Mortgage Scams

Mortgage Scams

5 Tips to Avoid Getting Slammed by a Reverse Mortgage Scam

Pages:  1  2  3  

  • Know borrowing eligibility. The Federal Housing Authority regulates how much homeowners can borrow with a reverse mortgage. The amount varies with the home's value and the borrower's age. Get a ballpark figure with a calculator such as AARP's at www.rmaarp.com/index.asp.
  • Determine the costs. Reverse mortgages are relatively expensive, requiring lenders to do more "upkeep" than traditional loans. Lenders must certify that borrowers continue to reside in the home. Also, lenders pay companies to make sure taxes and insurance are paid. Reverse mortgage fees are taken from the equity as part of the deal, but know they exist.
  • Get information for free. Do not fall for scams where "helpful" information about finding a lender is offered for a "small fee." Instead, call HUD at 1-888-466-3487. HUD will refer homeowners to an approved counselor that will assist them for free. These counselors also can help homeowners understand if they qualify for other benefits that might improve their financial situation. Bills.com's Reverse Mortgage center at www.bills.com/reversemortgage also offers more information about reverse mortgages at no charge.

    • "A reverse mortgage might be the right tool for you," Stroh says. "The only way to find out is to learn all you can – and then make the best decision for your future and that of your heirs."


    Pages:  1  2  3  


    Want to see more?