1) Independent Counseling. In order for you to receive independent, objective, accurate, 3rd party advice, each borrower must attend an over-the-phone private counseling session with a HUD approved and trained counselor.

2) Standard & Capped Interest Rates.  You can choose either a fixed interest rate or a rate that adjusts monthly or annually. The adjustable rates are calculated on the London Interbank Offered Rate Index (LIBOR) plus a margin charged by the lender. Both the monthly and annually adjusted rates have lifetime caps.

3) Limitation on Fees. All fees are regulated by HUD and are generally financed as part of the loan.  Origination fees are capped.  The loan was structures this way so that you incur minimal out-of-pocket expense when you get a reverse mortgage.

4) Advance Disclosure. The Total Annual Loan Cost, or “TALC” disclosure and the Good Faith Estimate of Costs are provided to you in the application process. This way you know up front, the costs you will incur in obtaining the reverse mortgage.

5) No Maturity Date. A reverse mortgage cannot become due during your lifetime as long as you maintain the integrity of the property and continue to live in the home. The fact that there are no required payments and there is a lifetime right to occupy the home provides you with the security and protection you need.

6) No Prepayment Penalty. Although the loan is not due and payable until you permanently move out of your home, it can be paid-off at any point prior without incurring any additional fees or costs.

7) No Penalty for Canceling the Loan. Even after you sign the final loan documents, you still have up to three days to cancel the transaction.  This is known as the “right of rescission,” and may be exercised for any reason whatsoever.

8)Asset Protection. The repayment of the loan includes the amount of money that was borrowed, the origination fees that were advanced on your behalf when you obtained the loan, and the interest that accrued over the life of the loan. In no event will the repayment amount exceed the value of the home, as long as the property is sold to pay back the reverse mortgage. If the heirs choose to keep the home, then the payback amount would equal the total balance on the account.

9) No Shared Appreciation. The lender abuses that existed at one time such as “equity-sharing” or “shared appreciation” are history. In some earlier reverse mortgage products, the senior was required to give up a percentage of the future value of the home but those abuses have been completely eliminated.