If you’re in the market for a reverse mortgage here are some useful questions to ask:

How old must I be to qualify? (Generally you must be age 62 or above).

Can I get a reverse mortgage if there is now a loan on my property?

What is the start rate for the loan?

When does the loan adjust?

How much of a rate increase is allowed with each adjustment?

What is the maximum loan rate?

What is the margin above the index. Remember — less is better.

Does the lender have any “shared appreciation” claim against the property in addition to interest and fees?

How much can I borrow?

How much can I get each month for the rest of my life? (Remember, the value of this fixed sum will be eroded by inflation over time.)

What are my alternatives to a reverse mortgage? For instance, does it make sense for my children to give me money each month in return for getting the home in my will?

For additional questions, and answers, be sure to speak with an attorney who speaiclizes in elder law.

This entry was posted on Thursday, July 19th, 2007 at 2:43 am and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.