Homemade Money: A Consumer's Guide to Reverse Mortgages
Seminar Introduction
Course Section
Until recently, there were two main ways to get cash from your home. You could either sell your home or borrow against your home and then repay the loan in monthly installments. Now, for homeowners over the age of 62, there is a third way: reverse mortgages. A type of loan against your home, a reverse mortgage does not require a move or regular loan repayments. The mortgage can be paid to you all at once, as a regular monthly advance, or at times and in amounts that you choose. You pay the money back—plus interest—when you die, sell your home, or permanently move out of your home.
Reverse mortgages are considerably different from other kinds of debt, and they can be quite complicated. Because you have a lot at stake in your home, it is important to understand the details of this new option before pursuing it.
This AARP seminar provides a comprehensive overview of the three main types of reverse mortgages. The seminar also explains several alternatives to reverse mortgages—additional sources of income that might make more sense for your situation. Throughout the seminar, unfamiliar words and concepts are defined. After completing this seminar, you'll be better equipped to decide whether a reverse mortgage is right for you.
Learning Objectives
- Understand eligibility requirements for reverse mortgages.
- Examine how reverse mortgages work.
- Identify possible alternatives to reverse mortgages.
- List and define the three types of reverse mortgages.
- Define key terms used in each session.
Credits
This seminar is based on an AARP booklet entitled /'Homemade Money: A Consumer's Guide to Reverse Mortgages," as well as an online version of the material. Copyright 2002, AARP.
Technical Requirements
To appreciate this seminar experience, it is critical that you have the appropriate software, plug-ins, and network connections. Please take the time to download the latest versions of the plug-ins mentioned below if you do not already have them.
Browser: Netscape versions 4.x up to 4.76, or Internet
Explorer versions 4.x or later. Your browser must be
JavaScript-enabled and must be set to accept cookies.
Network Connection: The recommended minimum connection is
56Kbps with a throughput of 34Kbps or more. A faster connection
is encouraged to take better advantage of the media elements in
the seminar.
Contributor Section
AARP Economic Security and Work Team
This seminar is brought to you through the AARP Economic Security
and Work Team. The team seeks to increase opportunities for AARP
members to build their personal economic security through
financial planning, reverse mortgages, career transitions, and
public/private resources for lower income consumers. It offers
practical information about investor protection and financial
choices for pre-retirees as well as those who are making or have
made the transition from full-time work.
AARP is a nonprofit, nonpartisan membership organization dedicated to making life better for people 50 and over. We provide information and resources; engage in legislative, regulatory and legal advocacy; assist members in serving their communities; and offer a wide range of unique benefits, special products, and services for our members. These include AARP The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our quarterly newspaper in Spanish; NRTA Live and Learn, our quarterly newsletter for 50+ educators; and our Web site, www.aarp.org. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
