Reverse Mortgage Counseling
NeighborWorks Provo now can assist you with reverse mortgage counseling. Let us educate you regarding features of a reverse mortgage, potential costs, budgeting, and your responsibilities as a reverse mortgage recipient. Counseling is a requirement prior to obtaining a reverse mortgage from any lender and we would be happy to provide that service. Just give us a call at 801-375-5820.
What is a Reverse Mortgage?
A reverse mortgage is a loan available to homeowners, 62 years or older, that allows them to convert part of the equity in their homes into cash, or just eliminate their mortgage payment if there isn’t enough equity to take cash out
The product was conceived as a means to help retirees with limited income use the accumulated wealth in their homes to cover basic monthly living expenses and pay for health care. However, there is no restriction on how reverse mortgage proceeds can be used.
The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.
The borrower is not required to pay back the loan until the home is sold or otherwise vacated. As long as the borrower lives in the home he or she is not required to make any monthly payments towards the loan balance. The borrower must remain current on property taxes, homeowners insurance and homeowner’s association dues (if applicable).
We charge an $23 fee for the packet of information we mail out to you and an $89.00 fee for the counseling itself. The standard fee at other counseling agencies in Utah and across the U.S. is $125.00 and up.
Let NeighborWorks Provo talk to you about a reverse mortgage, as an objective third party, and help you decide whether or not a Reverse Mortgage is right for you.