When you are evaluating your reverse mortgage options, there’s always the chance a disreputable reverse mortgage lender could take advantage of a borrower. You and your loved ones should:
Look out for scams.
Be leery of any person attempting to sell an annuity using reverse mortgage proceeds or suggesting a younger spouse, under age 62, be removed from the title of the home in order to qualify.
Work with a reputable lender.
M&T has been a reverse mortgage provider since 1998. As an active member of NRMLA (National Reverse Mortgage Lenders Association), we ensure our Reverse Mortgage Specialists receive comprehensive reverse mortgage training.
Take advantage of the process.
Reverse mortgage counseling is required prior to applying and is provided by a HUD-approved counseling agency. This simple step can be completed over the telephone and is another opportunity to ensure everyone understands how a reverse mortgage works. Some counseling agencies may charge a fee for this service.
Know the TALC.
TALC (Total Annual Loan Cost) combines all of the reverse mortgage costs into a single annual average rate and can be very useful when comparing one type of reverse mortgage to another. Your M&T Reverse Mortgage Specialist can help you with this calculation.
Involve trusted advisors in your decision.
Family, friends and professional advisors can provide outside counsel if you are unsure whether a reverse mortgage makes sense. The lender selected should welcome the participation of family or trusted friends in the process, if that’s what you wish, and encourage everyone to ask as many questions as possible.