Reverse Mortgage Counseling

Reverse mortgage counseling is provided by finance professionals who are well-versed in the ins and outs of reverse mortgages. The counselor may work for a bank or other lender, handling their reverse mortgages, or they may work for a broker, or for companies that provide help and information to those thinking of getting a reverse mortgage. The requirements for becoming a reverse mortgage counselor vary widely, but most have at least some training in mortgages and the finance industry.

As you probably already know, most reverse mortgages are taken by the elderly; some lenders prohibit anyone younger than 62 from applying for one. With a reverse mortgage, the borrower gets payments that deduct from their home equity; those payments cannot be more than the home's value. Most of the time, a person cannot get a reverse mortgage if there are liens on the property. If the borrower leaves the home, it must be sold to repay the reverse mortgage.

The reverse mortgage can either be repaid in cash or through a second mortgage. Most reverse mortgages are used by older people to finance their retirement years; unlike with home equity loans, there are no payments to be made. Reverse mortgages can be confusing, and a reverse mortgage counselor needs special abilities in their job. The mortgage is based on the level of equity the borrower has in the home, and their credit history is less important than with other loan products. Reverse mortgage counselors can offer information about other loan products that may be able to better meet the borrower's needs.

Most reverse mortgage counselors work in cities and urban areas, and they usually can find a lot of work because of the larger population. Some counselors work in smaller communities, those that have larger populations of elderly people. Most can provide phone assistance to customers, and like other mortgage experts, they must be able to strike a balance between the needs of the customer and the lender in order to come up with an appropriate and low-risk mortgage product.