NCOA Booklet is Required Reading for Seniors Considering a Reverse Mortgage
WASHINGTON, Jan. 22, 2013 /PRNewswire-USNewswire/ -- The National Council on Aging (NCOA) today announces the availability of the 2013 version of Use Your Home to Stay at Home™, the official reverse mortgage consumer booklet approved by the U.S. Department of Housing & Urban Development (HUD).
Use Your Home to Stay at Home™ is a user-friendly guide to help older homeowners understand the pros and cons of a reverse mortgage. Federal law requires that all individuals who are considering a reverse mortgage receive unbiased counseling by a HUD-approved counseling agency and receive a copy of the NCOA guide.Also known as Home Equity Conversion Mortgages (HECMs), reverse mortgages allow homeowners aged 62+ to convert a portion of their home equity into cash while they continue to live at home for as long as they're able. Over the past 20 years, a growing number of older homeowners have used this financial tool. Today, most borrowers use the loans for immediate needs, such as paying off their existing mortgage or other debts. About 33% want to supplement their monthly income, so they can afford to continue living independently in their own home longer. " Use Your Home to Stay at Home™ is an older homeowner's best resource when it comes to examining whether a reverse mortgage is right for them," said Amy Ford, director of NCOA's Reverse Mortgage Counseling Services Network. "Along with reverse mortgage counseling from a HUD-approved counselor, the guide is a trusted source of information for older adults to understand their options before they commit to a loan." The 2013 version of Use Your Home to Stay at Home™ reflects the latest statistics and rules related to reverse mortgages. The guide can be downloaded for free at www.ncoa.org/RMBooklet. Housing and reverse mortgage counselors can order multiple copies at www.ncoa.org/RMCounselors. "Reverse mortgages can be a useful piece of the puzzle when it comes to helping older adults make ends meet and stay independent as long as possible," Ford said. "However, they're not for everyone. It's critical that older homeowners and their families get unbiased counseling and information when considering whether to tap into their biggest asset."