Did you know there are hundreds of lenders/banks who offer the HECM (Home Equity Conversion Mortgage) program aka reverse mortgage?
Most seniors are led to believe that all lenders are the same and the the program is the same as 95% of the reverse mortgage are FHA insured HECM. This is not true.
There is a significant difference in prices/rates/fees between companies and seniors who are in the market need to comparison shop the lenders to keep them honest. Here are Click Quote Save this is our full time job and we offer a free HECM lender comparison to any senior in the US who wants to compare the very best lenders.
There is no single best lender. The largest lenders may not offer you the best quote (they may actually charge more for their services). In order to determine which is the best lender we first need to know your goals. Some lenders offer better programs if you have an existing mortgage loan, or don’t have a mortgage balance, if the home is worth more than $X etc. Each lender has their strengths and weaknesses as its important that you get matched with the lender who is best suited to help you. Click Quote Save has been working with the very best lenders in this industry for the last four years and we have made it our priority to figure out which lender is good for a specific scenario.
There is a list or national ranking of the top HECM lenders, this is based on actual number of deals closed and it’s not an indicator that these are thee best firms (these companies just advertise a lot more). Below is a snapshot of the lenders that have made this list.
7 Tips to finding the best reverse mortgage company for you:
- Local. Working with a local company can give you peace of mind, this is not always easy to find, as many companies lending reverse mortgages operate out of a call center model.
- Small company. This really depends but going with larger companies is not always the answer. We have found many smaller lenders who are more willing to work with you to lower fees and also provider better customer service during and after receiving your loan proceeds.
- Delay making a decision. When you first reach out to lenders let them know that while you are interested you want to wait at-least 2-3 months before making any decisions. This way you are not pressured to act now and you are upfront about your timeline. After analyzing this financial decision for a few months you will be ready to make a decision (not based on emotions but on whats best for your finances).
- Involve your family. Your family can help you in determining whether or not this program is right for you. Family members may want to extend you a loan or help you with your expenses in such a way that allows them to maintain the home and not the banks. Family and business should not mix but everyone needs help and advise from family and they can help you with this process.
- Compare lenders/banks. This is #1 on our list and we can help you to do this for free. When you compare the lenders you are keeping them honest. They are then obligated to offer you a competitive quote to stay competitive with their peers. No one wants to loose a potential client so the lenders will have to play ball on our terms to get you the best possible deal they can.
- Explore all other options. How about a cash out refinance? How about renting out a room or getting a part time job? No one can tell you the right answer but you should consider alternatives before taking a reverse mortgage loan.
- 3 days to change your mind. Should you take a reverse mortgage then decide its not for you you have 3 days to cancel your contract with the lender you chose.
Seniors make the mistake of thinking that all companies are the same and it does not pay to comparison shop. They are afraid and rightfully so of their name/phone/email being sold as marketing data from company to company and usually settle for the largest reverse mortgage lender as their top choice without doing any real comparison. When you go to the car dealership to buy a car you don’t just walk in and buy. You must first leverage the online power of comparison shop as its easy/free/convenient and most importantly it can dramatically save you money and time.
If you have already received a quote from a reverse mortgage company and would like us to review this information we can assist. If you are new to reverse mortgages and need general information and would like to receive multiple free quotes we can assist. Your information is kept confidential and you won’t be receiving harassing calls from sales people. Allow Click Quote Save to guide you during this most important financial decision for your retirement. We are unbiased and our only goal is to educate you on your options and provide you with quotes so you can compare the right companies to save time/money. Whether you decide to not use our free service we wish you the very best luck in finding the right company for your reverse mortgage.