10 Questions to Ask Before You Get a Reverse Mortgage

Ask any lender these questions, including us. A good lender will answer every one in plain English and in writing.

1. Is this an FHA-insured HECM or a private (proprietary) reverse mortgage? The protections and costs are different.
2. What are all the costs? Ask for the FHA insurance premium, origination fee, closing costs, and ongoing costs, on paper.
3. How much can I get, and in what form? A lump sum, monthly payments, a line of credit, or a mix.
4. Will the unused line of credit grow, and how?
5. What happens to my current mortgage? A HECM pays it off; a reverse mortgage second can keep it.
6. What are my ongoing obligations? Taxes, insurance, HOA dues, upkeep, and living in the home.
7. What protects my spouse, especially if they're under 62 or not on the loan?
8. What happens when I pass away, and what are my heirs' options and deadlines?
9. Will anyone ask me to buy an annuity, insurance, or investment with this money? The answer should be no.
10. Can my family and my financial professional join the calls? The answer should be yes.

Signs to walk away

• Pressure to sign quickly, or to skip counseling or leave family out
• Promises of "free money" or "no payments ever"
• Anyone asking you to sign over your deed
• A contractor offering to "set up the loan" to pay for their own work

Before you apply

Meet with an independent HUD-approved counselor (required for a HECM), bring your family, and ask your financial professional to review the numbers alongside your plan.