Where to Find Information on Reverse Mortgages
- There are three types of reverse mortgages, Federal Housing Administration-insured, lender-insured, and uninsured. Information about reverse mortgages can be found at banks, the U.S. Department of Housing and Urban Development and through organizations such as the American Association of Retired Persons and the National Council on Aging (NCOA). Senior programs such as Medicaid also provide borrowers with information about how their benefits might change or cease if their income significantly increases.
- The NCOA publishes a free brochure titled "Use Your Home to Stay at Home" that discusses options available to older homeowners. Reverse mortgage calculators are available online. The web addresses of three such sites are: http://rmc.ibisreverse.com/default_nrmla.aspx; http://rmc.ibisreverse.com//rmc_pages/rmc_aarp/aarp_index.aspx: and http://www.metlifebank.com/RMCalculator.do. Use the free calculators to compare the benefits and costs of different programs.
- A growing number of companies develop reverse mortgage scams and target senior citizens, often using seemingly legitimate names like United States Senior Services. For example, a Texas-based company, Acc-U-Lead, has been fined hundreds of thousands of dollars because of misleading marketing that promised extra Social Security payments for seniors who provided personal information. According to the Federal Trade Commission, red flags include exorbitant interest rates and fees, or exaggerated claims, such as "reverse mortgages provide income for life."