Reverse mortgage family conversation guide

Prepare a family conversation about a reverse mortgage

Use this checklist with the homeowner’s permission. Start with what they want from the home, then bring the unresolved questions to an independent HECM counselor and the appropriate financial or legal professional.

1. Homeowner’s priorities. Discuss independence, location, accessibility, expected time in the home, and reasons for considering a loan.
2. Property budget. List taxes, insurance, association dues, maintenance, and who will keep track of these obligations.
3. Household and care. Identify who lives in the home and what questions a spouse, caregiver, or possible future move raises.
4. Costs and alternatives. Compare borrowing costs and future balances with keeping the current arrangement, moving, or using other resources.
5. Repayment and family roles. Ask what happens after a sale, move, or death, and who will help communicate with the servicer when needed.

Write down what you know, mark what still needs verification and avoid including Social Security numbers, account numbers or other sensitive financial information.

Further reading: CFPB counseling questions (new tab).