Doing some [tag]reverse mortgage[/tag] research on the web, I came across this piece on the [tag]National Association of Mortgage Broker’s[/tag] ([tag]NAMB[/tag]) website:

Find out about reverse mortgages!

Notes on Reverse Mortgages, from NAMB’s President, Bob Armbruster, recent appearance on the Today Show. To see this vital information, click here.

[tag]Reverse Mortgage Information[/tag]
An Important Message for Seniors about Reverse Mortgages!

Making The Most of Your Home’s Equity

For senior citizens living on fixed incomes, the need to replace a car or do substantial home repairs can disrupt finances. Major unplanned expenses caused by illness or disability can lead to financial disaster. Fortunately, many seniors are sitting on a major financial asset: the equity in their homes.

Publicity about predatory lenders targeting the elderly has made some seniors wary about borrowing against their home equity. By following these do’s and don’ts, and by taking the time to do some smart planning, seniors can transform their homes into sources of financial stability.
DO

* Consider a reverse mortgage. If you are at least 62 years old and owe little or nothing on your home, you can take out a reverse mortgage that will pay you a certain amount each month. The loan won’t have to be repaid until the home is sold.
* Understand the type of loan you’re getting. There are many kinds of home equity loans: fixed rate, adjustable rate, lump sum, line of credit. Each has advantages and disadvantages, depending on your personal situation.
* Borrow only as much as you can afford. Make sure the monthly payments on your loan fit within your budget. If you can’t make the payments, you could lose your house.
* Use a professional. Borrow only from a reputable mortgage broker or lender.
* Get a second opinion. Talk about the loan you are considering with your daughter or son, with a lawyer or with another friend or relative. They might notice something you might have missed or not considered.

DO NOT!

* Use home equity for a quick financial fix. Don’t rely on your home equity to get you out of financial trouble. There are other options available – from credit counseling to even bankruptcy – that don’t put your home at risk
* Respond to door-to-door salesmen, telemarketers or internet ads. These are scam artists’ favorite sales techniques. If you’re considering borrowing against your home equity, as friends or family about a reputable broker or lender who can help you.
* Borrow through a home-improvement contractor. Contractors are generally interested in just one thing: making a quick sale. They’re likely to charge you a higher interest rate and may even fail to follow through on the work they promise.
* Give in to high-pressure salesmen. No reputable broker or lender will try to pressure you to take out a loan. Walk away from anyone using pressure tactics to get you to sign off on a loan.
* Take out any loan you don’t fully understand or aren’t completely comfortable with. It’s your loan and your house. If you aren’t happy with the loan terms, don’t understand what you’re being asked to sign or just have a bad feeling about it, just say no.

Certainly good information, but the presentation could confuse senior homeowners considering a reverse mortgage. The heading (An Important Message for Seniors about Reverse Mortgages!) doesn’t seem to fit with the content - which is really about home equity borrowing in general.

For example, comments about monthly payments (”Make sure the monthly payments on your loan fit within your budget. If you can’t make the payments, you could lose your house.”) are misplaced in a discussion focused on reverse mortgages.

Social tagging: Reverse Mortgage Tips

A Few More Related Articles of Interest:

NAMB - National Association of Mortgage Brokers

HUD Expands Reverse Mortgage Counseling Network

Larger Reverse Mortgages Available to Seniors In 2006

Reverse Mortgages to Help America’s Seniors Act

Reverse Mortgages and the Deficit Reduction Act of 2005