Reverse Mortgage Choices Booklet for Upload

8/9/2019 Reverse Mortgage Choices Booklet for Upload

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the AARP Foundation in cooperation with the U.S. Department of

Housing and Urban Development.


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i ,t\III

GontentsUsingThisDirectory. . . . . . .5

Video Scripts on Reverse Mortgages:

Part I - A New Source of Retirement Income . . .9

PartII -ACloser Look . . . . .17

Addit ionalResources . . . . . . . . . .3L

Special hanks for cover art adapted from work by

Karen Swenholt, graphic artist for Part II videotape.

l|


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Using This Directoryis resource directory takes you one step beyond

the AARP Foundation's two videotapes on ReaerseMortgages, ANew Source f Retirement ncome and ACloser Look,enclosed here for your use. Thesevideotapes are ntended for use by older homeowners,their personal or professional advisors, housingcounseling agencies and by lenders who want to givea balanced overview describing the reasons why and

the ways in which reverse mortgages are profoundlychanging the lives of the many people who use them.

As many more reverse mortgage choices areoffered in the marketplace today, we hope thesetapes will allow the viewers to increase heir level ofunderstanding about the details surrounding some ofthe existing products. As mentioned in the tape, it's

definitely true that reverse mortgages aren't foreveryone, and that one size does not fit everyoneeither!

1n1991, he AARP Home Equity lrformationCenter produced another videotape on reversemortgages or the counseling ndustry. When wepreviewed the videotape to the first audiences

without any script or guidebook, we found many ofthe viewers were taking notes as they were watchingthe "show." We are including this resource directoryin a printed format to help viewers review theinformation provided on these videotapes. We realizethat all adults learn differently, and so this directoryhas two basic elements: 1) word-for-word transcripts

of the narrative text illustrated with significant tablesfrom the second videotape; and 2) additional resourcelistings with further independent information onreverse mortgage choices.


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We hope these materials will assist you in yoursearch or the appropriate solutions to meet your

specific needs.Special hanks to Ken Scholen, Director of the

National Center for Home Equity Conversion, whoapplied his multiple talents in development of bothscripts for these videotapes. His commitment astrainer, writer, software developer and mentor havebeen invaluable to the Center and its work. Ken'scountless other contributions to this growing fieldhave certainly made the world a better place inwhich to live for all of us.

We also want to express appreciation to the U.S.Department of Housing and Urban Developmentand to Fannie Mae for their financial support to theAARP Foundatiory which made these videotapespossible.

And finally, our thanks to the homeowners seenon these videotapes - |ohn Sauer, Sister MaryVirginia and Anna Hromy, Nancy Glenn and ViolaJohnson whose generosity and kindness allowedus to share heir personal stories with the viewers.And thanks to the lenders who nominated some of

, their best customers as potential reverse mortgagespokespeople.

Please ean back and enjoy these videotapes.Drop us a note to let us know if they helped youunderstand more about how reverse mortgageswork, and how we might add more information to

our next information enterprise. Our address can befound at the top of the Additional Resources age atthe back of this booklet. We welcome your feedbackand comments.

AARP Hotun EeuIrv INroRverloN CENTER.


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Uideotapccnipt PantRevense MoRTcAcEs:

A New SouncE FRennrMENTncome

October,l-996

Contains material previously copyrighted byand used with the permission of

the National Center for Home Equity Conversion


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E

AARP DOES NOT ENDORSE ANYnvpnr, uer REVERSEaonrcncE

PRODUCTS,EnmrnsOnOrrrunVENDORSIN T.}fiSDEVELOPINGNDUSTRY

THIS PROGRAM WA$ MADE POSSIBTE

- -BY1Yry?N9JO*-^THE AARP FOUNDATIONFROMTHE U.S.DEPAKTMENT F

HOUSING & URBANDEVELOPMENT NDFnou FAI.{NIE Ae


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"Stay, stay at home and rest;Home-keeping earts are he happiest."

- Longfelloto

i[\Nhy not sell the house ? Because love it here.This is my home. I cannot think of a more

beautiful place to be than in your own home,wherever it might be. It gives someone a sense ofbelonging."

"Mama naturally wanted to stay at the home andkeep it because t's like a relic from the past and theirlife blood is in it." ,

'I think this is beautiful and I told the Lord Iwanted to stay here."

"It's my little corner of the earth. I'd rather be outin my backyard than any place else can think of."

Our reasons may be different, but the fact is, mostof us want to stay in our own homes as we age.

Hello,I'm PhilG"i."r. ff,i, ofa house holds alifetime of memories for me - birthdays, holidays,even weddings. This is my home. It took me years topay off the mortgage and now this homestead sworth a lot more than I ever imagined. But all theequity I built up wasn't helping me meet my financialneeds and I found myself "house rich and cash poor."

Until recently, the only options I had were to sellthe house or borrow against t. But I didn't want to

move and I surely didn't want to worry aboutmonthly loan payments. And then I heard about anew way for older homeowners to turn their equityinto income. It's called a reverse mortgage and it'shelping thousands of older Persons o remain at


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home with a sense of independence and security.Ken Scholen and Bronwyn Belling are two of the

foremost experts on reverse mortgages. Ken is thedirector of The National Center for Home EquityConversion and Bronwyn is a reverse mortgageexpert with the AARP Foundation.

BRONWYN: A reverse mortgage is a new way forolder homeowners to tap the equity in their homes

without having to sell or move.

KEN: A reverse mortgage is a loan against yourhome that you don't have to pay back for as long asyou live there.

BRONWYN: AARP has advocated for many, manyyears to bring more reverse mortgages o the marketplace and we'd like to see hese products be fair andeasy o understand and available throughout thecountry.

PHIL: And so that's why we're here - to learnabout reverse mortgages and make them easy ounderstand. We'lIsee how they work and we'llmeethomeowners across he country whose lives havebeen enhanced by this new source of retirementincome. High atop the Pacific Ocean n Palos VerdesCalifomia,T9-year old john Sauer has lived for morethan 30 years. John was able to get by with his

annuities and Social Security, but he was unable tomake the necessary epairs to keep up the house.|ohn Sauer had built up a lot of equity but he wascash poor, until a friend shared some nformation onreverse mortgages.


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|OHN: And I perused it and again perused it and Ithen decided that though I could get alongcomfortably,I didn't have a cushion and I felt that Ineeded the cushion. In read.ing about reversemortgages,I felt that I had the wherewithal to beable to do such a thing. And sure enough I was. Andwere I not to have the liquidity of the monies that Ireceived n a reverse mortgage, t would be a bit of atask for me. It would probably mean that I would

have to go into debt to be able to pay for all thesethings that have to be done. So therefore, have thatpeace of mind of knowing that I can rely on the factthat I have monies enough to take care of me - andif you don't think that isn't a load off a man's mind,Iassure you it is.

PHIL: |ohn also uses a reverse mortgage for thefuture and to set up a trust fund for a dear friendand his family. But across he country in Verona,PA.,\l2-year old Anna Hromy and her 8L-year olddaughter Sister Mary Virginia needed one to survive.

SISTER MARY VIRGINIA: It will be 80 years n

October when Mama and I arrived here. Dad cameahead to find work, and what you see now as ahouse was hardly more than a shanty and gradl,rallyover the years he kept knocking and pounding andhammering and made it into a home. The home wasdilapidated - the roof was leaking and ceilings hadholes in them. Social Security was no longer able tocover all the expenses. There was a time before whensh.e ould even save a little bit but oh no more. Nowshe had to withdraw from what little savings she hadin order to help pay the bills - and as the account


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was running very low and the zero was in sight.Then I knew I had to do something to help this poor

mother and learned about the reverse mortgage andgot into the program and we've saved the home. Oneasset o this whole program is that this little oldMother is in security, n peace of mind, in joy of hearttoo and comfort and convenience because she canlive and look forward to leaving this life in her ownhome.

PHIL: As you have seen, a reverse mortgage is a loanagainst your home that you don't have to pay backfor as ong as you live there. In fact, in most of theloans no repayment is due until the last survivingowner dies, sells the home or permanently movesaway. At that time you or your estate owe all themoney that's been lent to you plus fees and interest.When you secure a reverse mortgage the money canbe paid to you in three different ways: you can take a

r sinele lump sum-r or like Anna Hromy, you can have a certainamount sent to you every month

I or you can take it as a line of credit that lets youuse the money whenever you want to, the wayJohn Sauer does.

Ir the most flexible programsr /ou can combine thesedifferent ways of getting the cash o fit yourindividual needs. The options are what attractedNancy Glenn of Oxnard, California.

NANCY: I've been a widow since 1979, and a homethis size requires a lot of maintenance. work parttime and I usually rent my spare room and then myother source of income, of course, s Social Security.


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But it seems ike everything was going uP in priceother than my income. Well I was probably,about

$15,000 n debt and my house was in disrepair and Iwas a nefvous wreck. And I felt like I couldn't seeany light at the end of the tunnel and I didn't reallyqrritu kto* how to get myself out of the mess that Iwas in. So when Modern Maturity first came out withan ad on reverse mortgage loans, I called a 1-800number and inquired about it and it's been a

Godsend to me. What a relief to be able to get thenew roof and get a new fence and get this done andthat done and pay off some of my bills, and not havea house payment any more - that's the good part'

PHIL: A reverse mortgage can be used to meet avariety of needs. But you might be wondering how

they work. Let's look at Viola Johnson of BaltimoreMaryland, as an example. Eighty-seven years oldanabnna. Viola lived in a house that was literallyfalling apart.

VIOLA: Oh before I fixed it, it was run down andterrible. I was really scared of it myself. The roofleaked...

PHIL: Viola had money to buy groceries and pay theutilities but not enough to maintain the property, soshe secured a reverse mortgage. Her house wasappraised at $43,000. She was able to borrow 73plicent of that amount or just over $31,000. She ooku t r*p sum to make repairs and she put some- f itaway in a line-of-credit. Viola can now live in herhome as long as she wants.


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VIOLA: I feel wonderful about how I can go throughthe place now - nice floors. Oh my, I walked

through it - thanking you all and thanking the Lordbecause didn't think I would be able to live here.

PHIL: A reverse mortgage turns the value of yourhome into cash. t lets you decide when and how touse the equity you've spent years building up. Asyou get more cash rom the loan and as nterest is

added to it, your debt gets arger. The more equityyou use, the more you owe and the less you haveleft. Using more equity now means there will be lessfor you or your heirs in the future. When the loan ispaid back, the amount left over equals the value ofyour home at that time minus your debt. But, nomatter how much money you get and no matter howlong you live, your debt can never be greater thanthe value of your home. This safeguard protects youand your heirs against having to use income and orother assets o repay the loan.

With a reverse mortgage, you do not give upownership of your home. You're still the owner andthat means you are still responsible or paying theproperty taxes, homeowner's insurance and upkeep.A reverse mortgage must be a first mortgage, so ifyou have any debt against your home now you mustpay it off before getting a reverse mortgage or usesome from the reverse mortgage to pay off thecurrent debt. The first thing Nancy Glenn did withher new income was

pay off the house. A frequentlyasked question is how much money can you get fromthese oans? There are several different types ofreverse mortgages and the amount might varybytens of thousands of dollars from one plan to


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another. But in each plan the amount depends onhow old you are and how much your house is worth.

In general, he older you are and the more yourhome is worth, the more cash you can get. Advicefrom the expert Ken Scholen s to shop around.

KEN: I think the single most important thing tounderstand is that one size does not fit all. There aredifferent types of reverse mortgages and different

products fit different needs. And so you don't justlook into one type of reverse mortgage rfolt need tolook into two or three different types to see whichone fits your circumstance he best.

PHIL: The cost of a reverse mortgage can end upbeing much greater or much less han you think. Thetrue total cost depends on three things neither you northe lender know for certain when you get your loan.

1. How long will you live in your home.2. What happens to its value during that time,

and3. How and when the loan is paid to you.

Butthe out-of-pocket cost to get these oans is

generally very low. And that's because you cancharge most of the loan fees and closing costs. Thisincreases he debt you owe at the end of the loan butit makes t much easier o get the loan in the firstplace. As good as they've been for many homeowners,reverse mortgages are not for everyone.

BRONWYN: Generally you should look or considera reverse mortgage if you are intending to stay inyour home a long time. They're very exPensive fyou're only in the home for a short period of time.


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Th"y work generally better and you get more moneyif you're older. So even though people in their sixties

look into this idea, it's far better suited many timesfor people in their 70s and 80s.

PHIL: For many homeowners like Nancy Glenn, areverse mortgage can be a Godsend. For others it justmight not make sense. You have to decide foryourself. AARP doesn't endorse any specific brand

or types of reverse mortgages. As a consurneradvocate, AARP wants you to become an informedconsurner, so you can make the decision that worksbest for you.

BRONWYN: I think it's very important forconsumers to do their homework and not make adecision too quickly. The good news is there are lotsof reverse mortgages now in the market place. Thebad news, of course s, it takes a lot longer tounderstand the ins and outs of each of them and toreally fully understand also the altematives to areverse mortgage. Many, many people can have theirneeds met by a local program for property taxes, orhome repairs, and what have you for medicalassistance, harmaceuticals. And those localprograms are often quicker and cheaper than areverse mortgage.

PHIL: If you find yourself house rich but cash poor,

if you own your home and plan to remain there, areverse mortgage may be worth exploring. I inviteyou to join me and our experts as we take a closerlook at reverse mortgages. Until we meet again, I'mPhil Gaines. Thanks for watching.


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E

AARP DOES NOT ENDORSE ANYINDIVIDUAL REVERSE MORTGAGE

PRODUCTS, ENDERS OR OTFIER VENDORSIN THIS DEVET,OPING NDUSTRY

THIS PROGRAM WAS MADE POSSIBLEBY FLII\IDING TO

THE AARP FOUNDATION

FROM THE U.S. DEPARTMENT OFHOUSING & URBAN DEVELOPMENT AND


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ello, and welcome to A Closer Lookat ReoerseMortgages. 'm Phil Gaines. When we first met,

we learned about reverse mortgages n general. Nowwe'll go into greater detail.And to help us do that, we are oined by our two

experts on reverse mortgages: Ken Scholen whoheads the nonprofit National Center for HomeEquity Conversion, and Bronwyn Belling runsAARP's Home Equity Information Center. Welcome.

Ken, these oans are quite a bit different from whatmost of us are used to. What are the basics?

KEN: A reverse mortgage takes the equity or cashvalue of your home, and turns it into three differentthings:

r loan advances hat are paid to you in cashI loan costs hat are paid to the lenderI and, at the end of the loan, any leftover eguity

that remains for you or your heirsSince all reverse mortgages work like this, you

can learn most of what you need to know about thefinancial aspects of any reverse mortgage by askingthree simple questions:

r \A/hat do I get?I How much do I pay? andr How much equity would be left at the end of

the loan?

PHIL: Sounds ike a good plan. Let's take your three

questions one at a time, and see what we can learn.Bronwlm, I suppose he first thing most people wantto know is how much money they can get?

BRONWYN: Yes, hey do. But it's also important to


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find out when you can get the money. Some plansare much more flexible than others. For example, you

might need the full amount of the loan immediately- in a large lump sum of cash. But some plans don'tlet you do that. Th"y require that you take some ofthe loan as a regular monthly advance.

PHIL: IA/hat about people who want a monthlyadvance? What are their choices?

BRONWYN: A monthly advance could be paid toyou

I for a certain number of years, orI for as ong as you live in ybur home,I or for as long as you live, no matter where you

live.

PHIL: IAtrhat re the advantages and disadvantages ofa monthly advance?

BRONWYN: They give you a steady, eliable sourceof cash every month. But the amount never changes,and your financial needs could change a lot.

PHIL: Yes, you might need to fix your roof this year,and pay for some home health care next year. Howcan you meet these ypes of changing needs?

BRONWYN: By choosing a creditline. It lets you

decide how much of the loan to take - and when totake it. It's been the most popular choice by far. Itgives you the most control and flexibility for meetingyour specific needs.


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PHIL:In general you can choose a lump sum, amonthly advance, or a creditline. But not all reversemortgage plans offer all of these choices.

BRONWYN: No, but they usually let you combinethe types of advances they do offer. And some letyou change o other types of loan advances ater on.

PHIL: I can see why it's important to tailor the

timitrg of your loan to your needs. But how does thetotal amount of money you can get vary from oneplan to another?

BRONWYN: It can varyby a lot! By tens of thousandsof dollars. So t pays to shop around. And that meanslooking into three basic types of reverse mortgages:

I First, if your home's value is less han or aboutthe same as the average home value in yourcounty, then the plan that generally providesthe most cash s the federally-insured HomeEquity Conversion Mortgage (which is alsocalled the HECM plan).

r Next, if your home is worth more than the

average value in your area, hen a plan thatmight provide greater cash benefits is the oneoffered by the Federal National MortgageAssociation, which is also known as FannieMae.

r Finatly, if your home is worth much more thanthe average in your area, then you might get themost money from proPrietary+Iru that areowned and offered by major financial servicescompanies.


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PHIL: I noticed you used the words "generally" and"might."

BRONWYN: There are important exceptions othese general guidelines. So you should be sure toinvestigate all three types of reverse mortgages.

PHIL: \AIhycan the amount of cash you get vary somuch? Aren't all reverse mortgages based on the

same general principles?

BRONWYN: Yes, hey are, n general. But thespecifics can vary a lot. In each plan, the amount ofcash you can get generally depends on interest rates,VUJLvour ase, vour home's value, and- in the HECM- -plan - where it's located. The lower the rates, heolder you are, and the more your home is worth, themore cash you can get. hr the HECM plan, your cashbenefits may be limited if your home is worth morethan the average value in your area.

PHIL: But isn't that the only plan insured by the

federal govemment?BRONWYN: That's right Phil, and it has anotherimportant feature that sets t apart: its creditlinekeeps growing until you use it all up. For example, fyou qualify for $50,000 and immediately use $10,000of it, you would then have $40,000 eft.

If you didn't use any of that $40,000 reditline forthe next year, t would grow by the same rate beingcharged on your loan balance. At 8"/o, .or example,you'd have over $43,000 one year later, and nearly$47,000 one year after that.


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So when you compare creditlines, always ask if itgrows, at what rate, and for how long.

PHIL: So n asking "What can I get?" you need toconsider the different types of loan advances, heamount of money you can get, and in the case ofcreditlines - how much available credit would beleft in the future. Thank you, Bronwyn.

Now let's tum from "what you can get" to "howmuch will it cost." Ken, how do you compare thecosts of reverse mortgages?

KEN: Until recently it's been extremely difficult. Andvery easy to get the wrong answer. We normally lookat loan costs by considering each ndividual cost itemone at a time. This method generally works becausealmost all mortgages have the same ypes of costs.

But most reverse mortgages have other types ofcosts as well, and not all of them have the same ones.In fact, there's a lot of variety in the types of costscharged on reverse mortgages.

Some are so different from each other that untilrecently it's been virtually impossible to compare thetrue, total cost of one reverse mortgage with another.

PHIL: But now there's away to do that?

KEN: Yes. Federal Truth-in-Lending law nowrequires all lenders to disclose he total cost ofreverse mortgages. They must take all the itemized

costs -whatever they happen to be - and roll them

all together into a single annual average rate: whatwe call the Total Annual Loan Cost or TALC rate.


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PHIL: So this TALC rate lets us compare the true,total cost of reverse mortgages even if they have

different types of itemized costs?KEN: That's right. The TALC rate is the only trueapples-to-apples comparison. It also shows us thatthe total cost of any reverse mortgage depends onother factors in addition to the itemized costs. Lr fact,two reverse mortgages with exactly the same

itemized costs are highly unlikely to end up costingthe same. The true cost can vary by a lot.

PHIL: Ken,I think we need an example to see howthat works.

KEN: |ust happen to have one with me. These are theTALC rates on a federally-insured reverse mortgagemade at7o/o nterest to a71-year-old who chooses asingle lump sum of cash.

These TALC rates ncludeT% interest, federalinsurance,loan fees, and all other closing costs younormally have when you take out a mortgage.

TAIG ates7% ntercst 75-YearOld

LumpSum of Gash

After2 YearcAfter 12 YearcAfter 17 Yearc

t3%9%8%


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PHIL: If I'm reading this right, the TALC rate goesdown over time. TWo years after the loan is made,

the total rate is 13 percent, but thenit drops to 9

percent alter t2years and 8 percent after L7 years.\,tlhy does that happen?

KEN: Because ou are spreading out all the one-timecosts charged at the beginning of the loan over moreand more years. So they become a smaller and

smaller part of the total amount owed. And thispushes the annual average cost down over time.

PHIL: So, ime is one factor other than itemized coststhat affects he total cost of these oans. The longerthe loan runs, the lower the total cost becomes.

KEN: That's right. And here's another factor.These are the TALC rates f the home's value

increases each year by 4 percent. But here are theTALC rates f the value does not increase and, if itincreases at a much higher rate: 8 percent per year.

TALG ATESPrcpefr Appreciation ate

NoChange 4% 8%


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PHIL: Very interesting. The real cost goes downfaster when there's no growth in value. Why is that?

KEN: If your home's value doesn't grow at all, orgrows at a very low rate, your rising loan balance smuch more likely to catch up to it.

But you can never owe more than what yourhome is worth. So your debt is then limited by yourhome's value. And this pushes the real cost down at

a faster rate.

PHIL: So the real cost of a reverse mortgage dependson how long the loan runs, and what happens to thehome's value during that time. Anything else?

KEN: One more thing. This borrower selected asingle lump sum of cash. f you choose other types ofadvances, he TALC rates n most cases will be greater.

PHIL: \tVhy s that?

KEN: The true cost of a reverse mortgage - likemost things - depends on what you get for whatyou pay. No matter how you take the loan - lumpsum, monthly, or creditline - the initial cost ofsetting it up is the same. But if you take a singlelump sum, you get more money sooner. TALC rateson a lump sum are generally less han they are onmonthly advances or creditlines - a lot less n the

first years of the loan.* TALC rates can be very highif you live a short time and don't get much money.Later on, they become more similar among the

different types of advances.

*Seenote next page.


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PHIL: Let me see f I've got this. The total cost of areverse mortgage depends on how long you live in

your home, what happensto its value during that

iime, and the timing and amount of your loanadvances.

DEPET{DSN

r TIMENHOME

r GHANGESiI

HOME ATUE

r LOAN DVANCES

TotalGost fa

LONGER

SMALLER

Reuen$c oFtSagGCOST OWEST HEN

MOREOAl{S(X}NER

KEN: That's right, Phil.

PHILr And your total cost s thelowest when you

live longer, your home's value grows less, and youget more of your loan sooner. *

KEN: Exactly. The Truth-in-Lending disclosure spellsall of this out very clearly. So take your time and

* It is important to note, however, that even thoughthe TALC rates are lower in these circumstances,the amount being borrowed is much greater, somore total interest is being charged.


27/32

study it closely. But remember, although it tells youwhat the loan truly costs, only you can decide how

much that loan is worth to you. What you'llbe willingto pay depends most on how much you value it.

PHIL: Thanks, Ken.Bronwyn, what can you tell us about what's left

over at the end of a reverse mortgage?

BRONWYN: Most people who take out these oansexpect o remain in their homes for the rest of theirlives. But things can and do change. Not everyonewho intends to remain at home is able to do so. Andsome people change heir minds.

PHIL: So f you do move, you may need additionalmoney to pay for housing or care or both.

BRONWYN: That's right. But first you must payback all the money you've received from the reversemortgage - including any fees or closing costs paidfor with the loan - plus interest. You can use themoney you get from selling your home to do that.But the more you owe, the less cash you'llhave leftover.

PHIL: So the more cash you get from a reversemortgage now, the less you'll have later if you selland move.

BRONWYN: Yes. And that's why many borrowerschoose a creditline. It lets you control how muchequity you use now, and how much you keep forlater on. If you sell, you can take all the money left in


28/32

your creditline just before you do. If it's been agrowing creditline, as n the HECM plan, that could

be a lot of money.PHIL: How can you estimate what you'd have left ifyou do sell and move?

BRONWYN: Lenders and counselors can estimatethe amount based on assumptions about your

home's value, your loan advances, and interest rates.These estimates will give you a general dea ofwhat might happen. And you can use them tocompare the cash you'd have left under differentplans using the same assumptions.

PHIL: Thank you, Bronwyn. As we've seery here's a

lot to leam about reverse mortgages f you want tobe an informed consumer.Unforfunately, these oans are still so new that

very few professional advisors know much aboutthem. But our expert guests oday have almost 35years' combined experience with them.

BronwSm and Kery what advice can you give

consumers?

KEN: In a nutshell,I'd say ook at all your options,get independent advice, and be sure to shop aroundthoroughly.

PHIL: What are the main alternatives to reverse

mortgages?

KEN: I always encourage consumers o considerselling and moving - whether they're interested or


29/32

IE

not. Find out how much you could get for your home.Go see what's available in terms of other places o

live. You might be surprised.On the other hand, you might find even morereason or staying in your present home. Either way,you'll gain a more realistic sense of which alternativeyou value the most.

PHIL: Bronwlm?

BRONWYN: I always encourage consumers o checkout local government programs and services. Youjust might be eligible for something you don't evenknow about.

Your area agency on aging is the single bestsource of information on these programs. And there'sa toll free number for finding the agency nearest you.It's L-800-677-L116.

PHIL: If you want to learn more about reversemortgages, you'll need unbiased, ndependentinformation. So ook at the Resource Directory thatcame with this video. It shows you reliable sourcesthat can help you shop around thoroughly. AARPdoesn't endorse any specific brand or type of reversemortgage. But it does believe this new opportunitycan be a sound choice or many older homeowners.

And that's why AARP wants to help you be aninformed consumLr: so you can make the decision

that works best for you.For Bronwyn Belling and Ken Scholen,I'm PhilGaines. Thanks for joining us.


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Additional Resources

For More Information ...

AARP Home Equity Information CenterAARP Foundation601 E Street, N.W.Washington, DC 20049(202) 434-6042

Please visit us on the Internet:http: / /www. aarp. org money

Materials:I Home-Made Money (D L289Q;

45 page booklet

r Reverse Mortgage Lenders List (D 13253)I Home Equity Conversion and

Reverse Mortgage Fact Sheet (D 13722)

American Bar AssociationCommission on Legal Problems of the Elderly740 t5th Street, N.W.

Washington, DC 20005(202) 662-8690

Materials:I Attorney's Guide to Home EquitY

Conversion (Revised Edition, 1992,$15.00 ostpaid)


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National Center for Home Equity Conversion7373 L47th Street, Suite L15

Apple Valley, MN 55124(612) es3-4474

Materials:I Your Neut Retirement Nest Egg:A Consumer

Guide o the New ReverseMortgages,1996,342pages,91.4.95 ostpaid by mail order

only for readers of Home-MadeMoneyI Reverse Mortgage Update Newsletter andLender Locator (Free; send self-addressed,stamped, business size envelope).

r Sale Leaseback Guide and ModelDocuments ($gg postpaid)


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The AARP Home Equity lnformation Center, administeredthrough the AARP Foundation n cooperation with theU.S. Department of Housing and Urban Development.

AARP is the nation's leading organization for people50 and older. It serves heir needs and interests hroughinformation and education, advocacy, and communityservices which are provided by staff and a network oflocal chapters and experienced volunteers throughout the

country. The organization also offers members a widerange of special membership benefits and services,including Modern Maturity Magazine and the monthlyBulletin.

The AARP Foundation s an affiliated 501(c)(3) on-partisancharitable organization, stablished n 1961. t administers

publicly and privately funded programs/ such as theAARP Home Equity Information Centel the AARP SeniorCommunity Service Employment, and the AARP SeniorEnvironmental Employment Program. The Foundationalso carries out the Washington, D.C. based advocacyprograms unded through Legal Counsel or the Elderly,Inc. These programs also receive support from AARP.

AARP Horne Equity Information Center601 E Street, N.W. , Washington, D.C. 20049

,4ARP

#

D1,6323 196)

Reverse Mortgage Choices Booklet for Upload

Documents

Transcript of Reverse Mortgage Choices Booklet for Upload