Free Reverse Mortgage Counseling for Seniors Seeking to Use Home Equity
Author: National Council on Aging
Published: 25 Mar 2011 - Updated: 2 Mar 2025
Publication Details: Peer-Reviewed, Informative
Contents: Synopsis - Introduction - Main - Insights, Updates - Related Publications
Synopsis: This report highlights that the National Council on Aging (NCOA) is offering free counseling through its Reverse Mortgage Counseling Services (RMCS) Network to assist seniors aged 62 and older in understanding reverse mortgage loans and other options to remain in their homes. By waiving the usual counseling fee, the NCOA aims to help older adults make informed decisions about utilizing home equity, especially in light of potential budget cuts in senior services. This initiative is particularly beneficial for seniors and individuals with disabilities facing financial challenges, as it provides access to expert guidance on leveraging home equity without upfront costs.
Introduction
As older adults continue to face financial challenges in the sluggish economy, the National Council on Aging (NCOA) will offer free counseling for seniors through its Reverse Mortgage Counseling Services (RMCS) Network.
Main Content
RMCS counselors are waiving the usual $125 counseling fee in order to help more homeowners understand how reverse mortgage loans, along with community programs and other options, could help them remain in their homes. Consumers age 62+ can schedule a free reverse mortgage counseling session by calling 1-800-510-0301.
"Many homeowners are struggling in this economy, and with the looming budget cuts in senior services on Capitol Hill, its may make things more difficult for those in need," said Barbara R. Stucki, Ph.D., vice president of Home Equity Initiatives for NCOA. "With this in mind, we are happy to offer free counseling so that older adults can learn how to make smart decisions about using their home equity at a time when other resources may be decreasing."
Generally, NCOA RMCS counselors do not charge a fee for counseling upfront, only at the time of closing, if the client decides to take out a reverse mortgage. RMCS counseling is always free for clients with annual incomes of less than $20,000 for individuals or $30,000 for couples.
NCOA also offers a consumer booklet on reverse mortgages, entitled Use Your Home to Stay at Home. The booklet, and additional information on Reverse Mortgages, can be downloaded for free.
Facts on Canadian Reverse Mortgages
- Reverse mortgage rates are as low as Prime plus 1.25%.
- Once you are approved for a reverse mortgage, you are approved for life.
- Money is of course tax free, and can help you lower your overall tax liability.
- You can qualify for a reverse mortgage regardless of your credit rating or income level.
- Reverse mortgages provide you with an opportunity to diversify your retirement portfolio.
- There are different rules in Canada compared to the United States when it comes to reverse mortgages.
- If one spouse dies, there are no changes to the terms of the reverse mortgage. The loan does not have to be repaid and you don't have to re-qualify.
- Arranging a reverse mortgage is not complicated. Some seniors have described arranging a CHIP reverse mortgage as 'the simplest financial transaction ever arranged.'
- You will still have equity left in your home. Even after arranging a reverse mortgage, in most cases, HomEquity Bank clients have an average of 50% of the equity left in their homes.
- You can't sign final documents without first receiving Independent Legal Advice. That means all Canadian seniors must receive independent counsel before a reverse mortgage can be arranged.
Insights, Analysis, and Developments
Editorial Note: In light of economic uncertainties and potential reductions in senior services, the NCOA's initiative to offer free reverse mortgage counseling serves as a crucial resource. By providing seniors and individuals with disabilities with the necessary tools to make informed decisions about their home equity, this program supports their ability to maintain independence and financial stability. While reverse mortgages can offer financial flexibility for some seniors and individuals with disabilities, it's crucial to approach this option with careful consideration. Consulting with financial advisors and understanding the long-term implications are essential steps before making a decision. As housing and financial needs evolve, staying informed about various options remains key to making sound choices for one's future.Attribution/Source(s): This peer reviewed publication was selected for publishing by the editors of Disabled World (DW) due to its relevance to the disability community. Originally authored by National Council on Aging and published on 25 Mar 2011, this content may have been edited for style, clarity, or brevity.