New Guide to Reverse Mortgages

What are reverse mortgages? They are a special kind of home equity loan for homeowners aged 62 and older. The homeowners receive a portion of their home equity as cash. The loan is repaid when borrower either dies, sells his home, or moves out of the home. The Consumer Financial Protection Bureau recommends that you get HUD-approved housing counseling before you decide to get a reverse mortgage. The USA.gov blog reported that the Consumer Financial Protection Bureau (CFPB) has recently updated its guide to reverse mortgages. This update was needed due to new government rules concerning reverse mortgages. The changes are:

• first year payout limits - there are now limits on how much money you can get from the loan during the first year.
• new protections for the non-borrowing spouse.

You can learn more about reverse mortgages by reading the guide here.