Considering a reverse mortgage? We are here to guide you.
A reverse mortgage can be a life-changing financial decision. But you are not alone. ClearPoint is here to guide you every step of the way.
A Home Equity Conversion Mortgage (HECM) works like a traditional mortgage, only in reverse. It allows senior homeowners (age 62 or older) to turn their home's equity into available cash. Unlike traditional mortgages, in which the debt reduces as you make payments, reverse mortgages are "rising debt, falling equity" loans. This means that debt increases as you make withdrawals against the equity in your home. A reverse mortgage can be taken in a single lump-sum payment, you can arrange to have your lender send you a fixed amount each month, or you can leave the funds in a credit-line to use as needed.
As long as you live in your home and meet the basic requirements of the loan, a reverse mortgage does not require repayment of principal, interest or servicing fees.
To be considered for a reverse mortgage, HUD’s Federal Housing Administration (FHA) requires that you must:
Reverse Mortgage Counseling
- Be 62 years of age or older
- Have equity in your home
- Be up-to-date on payments
- Have no liens on your property
- Participate in a counseling session with an approved nonprofit housing counseling agency
Because this mortgage is federally insured, by law you must complete reverse mortgage counseling from an approved nonprofit counseling agency, like ClearPoint.
Our counselors can help you understand how a reverse mortgage works and how it may affect you. We will assess your situation and identify your financing options. Plus, we will explain the financial and tax implications, payment options and associated costs. This way, you can decide if a reverse mortgage is right for you. And after completion, you will receive the required Certificate of Counseling which must be filed with your lender at closing.
Why Choose ClearPoint
ClearPoint is an approved national provider of reverse mortgage counseling services. Our professional counselors follow specific practices to ensure quality services and to protect you against fraud and abuse. Certified by the National Foundation for Credit Counseling (NFCC), all of our counselors have completed stringent education and training requirements, have successfully completed the Home Equity Conversion Exam and are registered the HUD approved FHA roster to provide reverse mortgage counseling.