A reverse mortgage is a way to draw on the equity in one's home without having to pay back a loan until the home is sold. It is available to homeowners who are 62 or older who own the home free and clear or who have high equity in the home with very small mortgage left to pay. There are several types of reverse mortgages including a "Home Equity Conversion Mortgage" or HECM insured by the federal government through Federal Housing Administration insurance. This type of reverse mortgage requires the homeowner to receive counseling from a HUD (Department of Housing and Urban Development) counselor prior to receiving a HECM.

The purpose of counseling is to ensure that the homeowner:

Is aware of the costs associated with a reverse mortgage such as closing costs, interest and insurance fees.
Understands reverse mortgage terminology and how it works.
Understands its pros and cons. Is informed of other options.
Is aware of other implications such as tax consequences, the possible impact on state or federal assistance the homeowner receives, and the impact to any heirs of the home.

The Agency provides HECM reverse mortgage counseling at our Westminster office and by phone for homeowners who live further than 50 miles from the nearest HUD approved counseling agency.  Please contact Charlotte Brousseau to schedule an appointment, 303-428-1448.  For additional reverse mortgage information, visit AARP’s web site at: http://www.aarp.org/money/revmort/, or HUD’s website at http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm.