What is a Home Equity Conversion Mortgage?

Your Financial Freedom Starts Here

Welcome to Scout Mortgage’s website dedicated to the world of Reverse Mortgage loans.  The information contained within this site will help you determine if a Reverse Mortgage is right for you. It will also give you the tools to take advantage of all the opportunities that a Reverse Mortgage loan has to offer.

Our goal is not to sell you on a Reverse Mortgage Loan, but rather we want to lay out all of the facts so that you are able to determine if a Reverse Mortgage is a loan product that makes sense for you.  If you have already done some internet research on Reverse mortgages, you know that there is a lot of information about Reverse Mortgages and their usefulness as a financial planning tool.  Some of the internet chatter is good, some bad, some accurate, and some inaccurate.  

As you evaluate the pros and cons of a Reverse Mortgage, it is okay to be skeptical, but make sure you keep an open mind.  It is important to know that recently there have been a lot of positive changes to Reverse Mortgage Loan products that make them simpler, safer, and more advantageous than ever before.  As a result of these changes, the Reverse Mortgage is quickly becoming a popular way for seniors to supplement their retirement income.

You don’t need to be a financial expert to understand Reverse Mortgages.  In fact, if you know just the basics you will have enough knowledge to make a very informed decision.  Whether or not a reverse mortgage works for you will depend on a number of factors and every individual and situation is unique.  Generally speaking, you will probably want to continue your evaluation of a Reverse Mortgage loan if the following criteria apply to you:

1)      You are at least 62 years of age

2)      You own your home free and clear or have more than 50% equity in the property

3)      You plan on staying in your home

4)      You don’t own other assets that may serve as a better source of cash than a reverse mortgage

We would also like to make you aware that traditionally when one thinks of a Reverse Mortgage, it is usually in conjunction with a refinance transaction.  However, a Reverse Mortgage Loan can be a powerful financing option when you are purchasing a home.  As discussed in more detail below, a Reverse Mortgage can enable you to purchase a much nicer home than you may think because the qualifying requirements are much less stringent than the qualifying guidelines on a traditional forward mortgage.

If you come to the conclusion that a reverse mortgage is not the right loan for you, there are several alternative loan products that might be the right answer for you.  At Scout Mortgage we have, in addition to Reverse Mortgages, a full lineup of traditional loan products to fit your needs.

The information contained on our website is laid out in the following format.  We suggest you read and learn the information in the following order, although it’s not necessarily critical.  If there is a topic of interest please feel free to go directly to it.

1)      Reverse Mortgage Information (understanding the Basics)

2)      Reverse Mortgages Pros and Cons and alternatives

3)      Using a Reverse Mortgage to purchase a new home

4)      Reverse Mortgage Calculator – How much can you borrower

5)      Reverse Mortgage Rates

6)      Reverse Mortgage Counselors and Resources in your state

We are here to help.  If you have questions or need clarification about the available options, please feel free to pick up the phone and call us or if you prefer send us an email and we will respond right away.