The Reverse mortgage program can be a very intimidating process because it is much different than a traditional home mortgage loan and whenever we face change, many times change can be confusing and we lose our effective navigational bearings in the form of important decision making skills with confidence.
The simple steps to securing a reverse mortgage is to understand the reverse mortgage program completely. Reverse mortgages are nothing more than an interest only home loan that provides the next is to know what your program options are. Once you understand the reverse mortgage program as well as the different payment programs, you will want to think about what you are trying to accomplish and which program best suits your needs.
If you do find a reverse mortgage program that you feel is most suited to your needs, you will want to see a quote which is the same thing as what is called a “Good Faith Estimate” in the conventional home mortgage business.
The final step in securing the best terms and lowest fee’s is to shop for the best deal.
It is more difficult and takes more time to shop for a reverse mortgage because there are so few reverse mortgage lenders to choose from compared to conventional home lenders.
If you decide not to shop and push for a great deal on a reverse mortgage, chances are you will get clobbered over the head with huge lending fee’s.
Home mortgage consumers need to understand the mentality of home mortgage lenders when it comes to lending fee’s. When it comes to lending fee’s, most lenders will ask for what they can and ultimately take what they can get in order to beat the competition and be the lender that the borrower chooses.
The government recommends and we agree, that if you do find a specific reverse mortgage program that you feel is the most suitable to your needs, it is in your best interest to get at least three to four different lender quotes as well but the key is that you need to shop the right way which means you want to compare the exact same program, using the exact same interest rate and most important, using the exact same loan amount. This way it will be much easier for you to compare and determine which lender is offering the most reasonable lending fee’s and the most reasonable title fee’s.
Ultimately there are only two issues to consider when choosing a reverse mortgage. Number one is that you must be clearly aware that you must continue to make tax payments and insurance payments on the property because a reverse mortgage loan closes in your name.
The next most important issue is the inheritance issue. As far as inheritance to your heirs, the more you take from a reverse mortgage, the less will be inherited by your children and grand children. For many this is an important issue because most people want to leave as much as they can to their loved ones, but some reverse mortgage borrowers don’t have children or their children are doing very well financially and in these cases inheritance is a low priority concern.
If inheritance is a concern, but you feel it is in your best interest to keep your financial options open in the event of an emergency, a home owner who is qualified for a reverse mortgage but who’s home is paid off, may choose a small line of credit reverse mortgage or a reverse mortgage program that provides monthly payments because the rate of increase in the reverse mortgage liability grows much slower. Therefore the reverse mortgage providing monthly payments and the minimum line of credit reverse mtg programs are the most sensitive to your heir best interest. This is why suitability in choosing the right reverse mortgage program is the number one priority.
The lender of choice will usually be the lender that is most interested in what you are trying to accomplish, what your concerns are and is more interested in determining which program is best for you over trying to get you to sign on the dotted line.
Reverse mortgage lenders direct can provide you several reputable lenders to compete for your business and help save you money.
For answers to any questions you may have or if you wish to get a free no obligation reverse mortgage analysis and quote, simply fill out the contact information below along with the best time of day to be reached and we will do everything we can to educate you further, answer your questions properly and have one of our lender affiliates provide you a no pressure, no obligation quotes.
In order to get the best reverse mortgage loan, you will need to determine first which program best suits your family’s needs and goals.
There are three options to choose from in terms of how you access the equity in your home.
1.) Lifetime monthly income
2.) Credit line
3.) Lump Sum
You are able to choose a combination of the above.
Once you have chosen a reverse mortgage program, the government recommends and we agree, that you should get several different reverse mortgage lender quotes using the exact same program, loan amount, and exact same interest rate margin. This will make it easier for you to determine which lender is offering the most reasonable lender and title fee’s
As you continue your quest for the best possible margin interest rate terms and lowest possible reverse mortgage closing fees, it will help if you have reverse mortgage loan savvy and more familiar with how the lenders get paid.
Reverse mortgage lender fees are derived from two areas, mostly from marking up the interest rate margin and the closing fees. There can be huge discrepancies between what bank A charges and what bank B has to offer. This is why we are advocating you compare 2-3 lenders to make sure you are getting the best reverse mortgage quote possible.
Closing fee’s also include title fees and you will want to compare title fees as well.
Always request a written quote. This makes it much harder for the lender/bank to perform a bait and switch where they tell you one thing and when you get to closing its another story.
The biggest fees to lender comes from marking up the interest rate margin ( a much higher percentage mark-up is allowed by the government vs what is allowed on conventional home mortgages, then there are the closing fees.
Once you are done gathering your quotes, it is time to call each one of them and start with “This other lender said he would give me a better interest rate” “Can you do that? “Can you do better?”
You can also say, “This other lender is willing to pay for my closing costs and give me a lender credit of $x. By pinning the banks against each other those who are willing to compete for your loan will give you a lower fee/interest rate loan in order to win your business. Competition is the key to your success. RMLD has some of the largest HUD approved banks in network who are ready to compete for your business.
A lender credit is a rebate on some of the fee’s that the lender is making on the interest rate margin which can be significant on larger loans.
Reverse mortgage borrowers also need to know that just like with any home mortgage, the mentality of the lenders is pretty much the same. Reverse Mortgage lenders for the most part think like this when it comes to reverse mortgage pricing. “ask for what you can, and take what you can get.”
So in most cases like with any other purchase, when you take the time to shop, you usually save money.
But with big ticket purchases like a home, a home mortgage or even a car, shopping means saving potentially tens to hundreds of thousands of dollars. HECM reverse mortgage accrue over time thus the need to find the lowest interest rates and fees on your part.
To make it easier for you to save time and aggravation in shopping and to save as much money as you can, and to protect yourself from predatory loan practices and high pressure sales tactics, you need to shop a reverse mortgage carefully.
The best place to start your reverse mortgage quoting is a multiple reverse mortgage quote web-site
Reverse Mortgage Lenders Direct is a top reverse mortgage comparison web-site designed to protect your best financial interest and save you money.
Reverse Mortgage Lenders Direct can provide senior home owners with a variety of reverse mortgage quotes from reputable national and local reverse mortgage lenders eager to compete for your business and when it comes to reverse mortgages, like with any mortgage, when reverse mortgage lenders compete for your business, you win.
For the best reverse mortgage quote, simply fill in your contact information above and competent help will be on the way.
Getting the best deal on a reverse mortgage is simply a universal process and seniors should follow this in order to avoid overpaying for the same exact loan.
“You have to comparison shop, this is the only way to keep lenders honest and to secure the best deal.”
Most importantly and often overlooked you have to compare similar loan set ups (eg lump sum from one bank vs others). This is the key to being able to quickly identify which lenders have your best interest.
RMLD has for over 5 years now helped seniors comparison shop HECM reverse mortgages online. The above process is free for seniors to pursue on their own BUT RMLD is also a free service and using it will save you time and money. RMLD will connect you to 3-4 reputable lenders in real time to make the comparison process easier for you.
Although there are only a handful of reverse mortgage lenders available compared to regular convention home loan lenders to get quotes from, it is important for you to know that not every reverse mortgage lender pays millions of dollars to hire former politicians and actors to market their products.
Large marketing budgets usually result in higher costs to the consumer. Now you may want to ask yourself, why are these reverse mortgage lenders spending so much money to advertise the reverse mortgage programs? Again very simple, reverse mortgages are nearly twice as profitable for the reverse mortgage home lenders than a regular conventional home loan.
Reverse Mortgage Lenders Direct takes to protecting “The Generation That Built This Country and their families as consumers seriously”. Our job is to shield you from “High pressure sales tactics” and Predatory Loan practices that result in much higher loan fees and interest rate markups. Reverse Mortgage Lenders Direct views most of the potential reverse mortgage borrowers
The reverse mortgage for those who are concerned with what money and financial assets they will leave their family is usually a mortgage of last resort.
If your children cannot assist you financially in order to be able to maintain your cost of living, than you have two choices, sell your home and downsize, or get a reverse mortgage if you qualify
If you are like most California seniors who have bought their homes for $20-$40,000 back in the early 1970’s than you are most likely living in a home worth more than $600,000. Now you are house rich but cash poor because the cost of living in California is so high.
Most California Seniors have two other big problems, High State taxes and high home owners insurance rates
Florida seniors living in higher priced homes also share the same problems that California seniors are facing
The first priority is to choose the best loan program for you and your family. Once you have determined which program you are interested in, The next step is to get at least three to four different lender quotes from competitive lenders using the exact same lending program, loan amount, and exact same interest rate margin. This will make it much easier for you to determine which lenders are the most reasonable. Any lenders that do not provide you with a quote are either being evasive or inept and in either case, should be quickly eliminated from the list of lenders you are considering doing business with
All of the lenders that are part of the Reverse Mortgage Lenders Direct Network are the most competitive reverse mortgage lenders in the country and eager to provide you all the information and assistance you need to make the right reverse mortgage program choice.
Regardless of what State you live in, whether it be California, Washington, Texas, Florida Maryland or even in Washington D.C. You can count on Reverse Mortgage Lenders Direct to Assist you in getting the best terms on a reverse mortgage which include first and foremost, the most suitable program for you and your family as well as the lowest interest rate margin and closing costs
Reverse Mortgage Lender Direct is a privately held company who’s ownership answers to a higher power and is committed to protecting you and your family as a consumer.
It is truly our pleasure to assist you
For the best deal on a reverse mortgage, simply provide us your contact information and the best time to call.