A Rhode Island news publication is urging its readers to take charge when considering the prospect of a reverse mortgage, offering several tips to consider before taking out the loan that may or may not be right for them.
Fielding a question from a couple that is considering a reverse mortgage to provide some extra funds each month, while also funds for home remodeling, Providence Journal features a column from Larry Grimaldi, chief of program development at the Rhode Island Department of Human Services, Division of Elderly Affairs.
The column details the preliminary basics of a reverse mortgage, including the minimum age 62 requirement and the loan’s ability to convert home equity into cash, while also touching on what the loan proceeds can be used to accomplish, such as footing the bill for home repairs among other living expenses.
In the column, Grimaldi also encourages those interested in obtaining a reverse mortgage to take charge by accessing several online resources to learn more, including visiting the National Council on Aging’s free booklet “Use Your Home to Stay at Home” and located approved lenders and counselors via the Department of Housing and Urban Development.
Additionally, Grimaldi also guides readers to the Federal Trade Commission, which offers several tips to prospective reverse mortgage borrowers, including origination fees, insurance premiums and other costs associated with the loans.
“Consider all costs and fees associated with the mortgage before you make your decision,” Grimaldi writes. “Shop around. It’s your money and your future.”
Read more at Providence Journal.
Written by Jason Oliva