We know that these are very challenging economic times
Riverside, CA (Vocus) May 26, 2010
Reverse mortgages can be an attractive option for seniors who have equity in their homes and want to supplement their income. The reverse mortgage insured by the U.S. Federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved lender. In an effort to help educate more seniors about a HECM loan, and how it differs from a traditional home equity loan or a home equity line of credit, Springboard Nonprofit Consumer Credit Management is pleased to announce that it is offering free reverse mortgage counseling effective June 1.
Before consumers can obtain a HECM loan, they must receive consumer information and counseling from a HUD-approved housing counseling agency and provide the lender with a certificate confirming the counseling.
“We know that these are very challenging economic times,” said Melinda Opperman, Springboard’s senior vice president of community outreach and industry relations. “It’s smart to know more about reverse mortgages, and by offering free counseling sessions we’re able to help more seniors make an informed choice and decide if one is right for their needs,” said Opperman.
To be eligible for most reverse mortgages, the youngest borrower on the title of a reverse mortgage loan must be 62-years-old. The senior must own their home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and they must live in the home. A reverse mortgage allows a homeowner to borrow against the equity in their house and receive periodic payments while continuing to live in the house. Lenders do not require repayment of the reverse mortgage until the last surviving borrower or owner sells the house, moves permanently or passes away.
“We’re dedicated to educating as many consumers as possible about the HECM loan,” said Opperman. “There are many important factors for seniors to consider before deciding on a HECM loan,” said Opperman.
Factors that affect the amount of money a consumer can get from a reverse mortgage include (1) the value of the home and available equity; (2) age of the homeowner; (3) existing liens on the property; (4) prevailing interest rate and other loan fees; and (5) type of reverse mortgage selected. Springboard counselors discuss information with consumers that will help them make their own decisions about the HECM loan and other alternatives. Seniors interested in reverse mortgage counseling can call 800.449.9818 and schedule an appointment at their convenience.
About Springboard Nonprofit Consumer Credit Management
SPRINGBOARD® Nonprofit Consumer Credit Management is a 501(c)(3) nonprofit personal financial education and counseling organization founded in 1974. Springboard is a HUD-approved housing counseling agency and a member of the National Foundation for Credit Counseling, a national organization of nonprofit credit counseling agencies. The agency offers personal financial education and assistance with credit counseling, housing counseling, debt and money management through educational programs and confidential counseling. Springboard is accredited by the Council on Accreditation, signifying high standards for agency governance, fiscal integrity, counselor certification and service delivery policies. The agency provides pre-bankruptcy counseling and debtor education as mandated by the bankruptcy reform law. The agency has 18 locations in California, Arizona, Nevada, New Mexico and Texas for in-person counseling sessions. Not all types of counseling are available in-person at all locations, please call for details. For more information on Springboard, call 800.449.9818 or visit their web site at http://www.credit.org.