Reverse Mortgages: Understand the Benefits and Costs

Are reverse mortgages right for you?  If you’re over 62 and have substantial equity in our home, maybe—but maybe not.  A reverse mortgage typically means you get cash from your home, but it also means the amount you owe increases, rather than decreases, over time. Reverse mortgages are complicated, and they can be costly.  Banking regulators have taken some steps to strengthen protections on reverse mortgages, but these risky mortgages will certainly continue to be monitored and debated.

Find Out More

Consumer Financial Protection Agency: Considering a Reverse Mortgage? (PDF)

AARP article: Reverse Mortgage Basics

AARP article:  Reverse Mortgage Alternatives

Consumers Union: Guarding the Golden Years

 

Reverse Mortgages in the News

Reverse Mortgages are a Mixed Bag
A brief radio segment from "Marketplace," American Public Media, that includes comments from CRL's Charlene Crowell. Be sure to see the comments from listeners, too.

FHA Audits Reverse Mortgages
Preliminary delinquency numbers provided by the non-profit credit counseling group CredAbility found that about 5 percent, or nearly 30,000, reverse mortgages nationwide, are delinquent.

Reverse Loan Guidance Done 
U.S. banking regulators on Aug. 16 released final guidance on the risks of reverse mortgages, which cater to seniors and may become more popular as more Americans reach the qualifying age.

New Counseling Procedures Released for Reverse Mortgages After almost two years of research and revisions, HUD has published new procedures governing the process for senior citizens who are counseled for federally backed Home Equity Conversion Mortgages.

Legislation Targets Predatory, Confusing Marketing of Reverse Mortgages