Countrywide Reverse Mortgage Home Loan

From LoveToKnow Mortgage

A Countrywide reverse mortgage home loan is no longer available; this popular lender was acquired by Bank of America. Potential borrowers looking to obtain a reverse mortgage should find a lender that is currently in business and accepting applications.

Find a mortgage lender.

The information below pertains to when Countrywide was still open for business.

Previous Countrywide Reverse Mortgage Information

Reverse Mortgage Eligibility

Countrywide offers reverse mortgages to applicants who are over 62 and who meet the other requirements:

There should be no mortgage on the home, or there should be a mortgage which can be paid off with the reverse mortgage.
The home should be the applicant's primary residence and not a rental or vacation home.
Applicants must complete reverse mortgage education from a counselor approved by The U.S. Department of Housing and Urban Development (HUD).

People who still owe a considerable amount of money on their mortgages and who do not have much equity built up in the home are not good candidates for reverse mortgages.

Ideal Applicants

Countrywide takes the stance that reverse mortgages are a great idea for people who have trouble making ends meet financially, and who qualify for a reverse mortgage based on the aforementioned criteria. A reverse mortgage can indeed supplement a retired person's income considerably, but a reverse mortgage is not free money. No matter how long the primary applicants live in the home, there will eventually come a time when the loan must be settled in full whether it is through the sale of the home or a refinancing of the Countrywide reverse mortgage home loan into a conventional mortgage loan.

Countrywide Reverse Mortgage Home Loan Rates

The interest rates for Countrywide mortgage products are generally competitive with the interest rates offered by other major mortgage lenders. Countrywide is more widely known as a lender that can get applicants approved despite bad credit histories and other detrimental credit scenarios than as a mortgage lender with rock-bottom interest rates. Before applying for a any mortgage loan – regardless of the mortgage loan product or the credit score of the applicant – a thorough review of interest rates offered by various lenders should be conducted. Although calling several lenders is one way to compare mortgage loan interest rates, interest rate comparison websites can speed up the process considerably.

You should never disregard the interest rate on a reverse mortgage. Just because you aren't making monthly payments to a loan does not mean that the interest rate isn't incredibly important.

Countrywide Education Information

Countrywide takes steps to make sure that applicants know there are other options available besides applying for a reverse mortgage. Some of the alternative options they suggest include:

Selling your home and using the sale proceeds as supplemental income.
Considering alternative loan products, such as equity loans and equity lines of credit.
Taking up residence with a family member or friend.

Although Countrywide does not overtly discourage these alternative options, they are quick to point out the downsides to them.