Reverse Mortgage Lenders Direct (RMLD)
RMLD (Reverse Mortgage Lenders Direct) has been operating for over three years with one goal in mind; make it easier for seniors to find the best reverse mortgage loan through our free comparison service. What is the best loan you may be asking yourself? We believe this is the loan with the lowest fees, lowest interest rate, and most available cash proceeds for you the consumer.
This is a complicated program that requires much research and due diligence on your part. Don’t go trying to do this alone, this will increase your chances of making critical mistakes. You now have a trustworthy partner in the business, who can assist you in shopping these loans.
We are proud to be independently owned and operate with zero debts. We make decisions based on what is best for the seniors who are considering this option. We are not owned nor affiliated with any one bank in specific.
The information provided on this website is unbiased, and it allows for seniors over the age of 62 to quickly learn the facts of the reverse mortgage. It is not all academics here; we take the process of finding you the best quote very seriously, and our entire business is built on the foundation of finding you the best possible offer. We have invested heavily in the right partnerships, technology, and call center infrastructure to be there when you need us the most.
With hundreds of potential lenders to choose from, we have our work cut out in managing these relationships to secure you the best programs. By allowing RMLD to comparison shop lenders and find you the best match, you will save both time and money. Like any other market, there are companies you need to avoid, and if a deal sounds too good to be true, it most likely is a scam. We only work with licensed, HUD approved lenders, and most we have referred business to for years.
Should you have questions about how a reverse loan works do not hesitate to call us. We do not charge you any money and, or there are no added costs in using our services to consumers.
Seniors considering a reverse mortgage program as an option to utilize the built up home equity should be comfortable with staying in that home for at least five years.
Reverse mortgages are not free government money. This is not a grant or any needs based program.
If used as intended the reverse loan can dramatically improve your retirement. More than 850,000+ seniors have taken a reverse mortgage, so you are not alone in your search for a better retirement.
Reverse mortgage basics and facts:
HECM (home equity conversion mortgage) is the technical name for the reverse mortgage loan.
HECM’s are insured by the Federal Housing Administration (FHA). These loans make over 95% of the market today. Please note while almost all reverse mortgages are HECM’s, they each can vary drastically in fees and rates among the banks. The number one tip we can give to consumers is that comparison shopping pays off in getting the lowest rates/fees. This used to be a cumbersome process but by using our website we will analyze and filter out the bad lenders while providing you with multiple free quotes.
To qualify you meet the following requirements:
- Be 62 years of age or older. You can still qualify if one borrower is not yet 62 or older.
- Own a home and live in the home as your primary residence (for at-least 183 days out of the year).
- This property needs to have sufficient equity available to pay down any mortgages or to cover your proceeds.
- Never have been delinquent on any federal debt (student loans or similar gov. debt).
- Have the money set aside or enough income to cover property taxes, insurance, and regular upkeep.
- Pass the financial assessment that includes the lender reviewing your credit scores, income, and assets. March 2nd, onwards financial assessment will apply to all those who apply.
- Partake in a mandatory consumer information call given by a HUD approved HECM counselor.
For detailed information on who qualifies visit this page:
FAQ – Frequently Asked Questions
- How does it work? The lender will pay the senior to retire in their current home. Seniors can use this program to get rid of any existing mortgage payments. There are no restrictions on funds released to you and no taxes to be paid on that money. In exchange for all of those benefits, the reverse mortgage loan accrues interest on the amount you borrowed, and that is to be paid when you either exit the home (either through selling/death). Any remaining equity after paying back the HECM loan will be available to your estate. Should the property value not cover the amount you borrower (let’s say property prices tumbled) your estate is NOT responsible for paying back the difference as this loan comes with an insurance policy that protects your estate from having to pay this (non-recourse loan).
- How do I receive the funds? You can select between a monthly income check for lifetime, a credit line, combination, and or a one-time lump sum. There are no monthly mortgage payments but you will be responsible for property maintenance, property taxes, and property insurance (this would be the case even if the home was paid off).
- How does the bank make money? The lender will make money through upfront and ongoing fees. The interest rate charged to the loan accrues as time goes on the balance increases. Should the equity not cover this increase in reverse mortgage loan you or your heirs will not be responsible for any losses.
- Who and what needs to be repaid? When the borrowers die, sells the home, or permanently moves out the loan becomes due and payable. The sale of the home should cover the HECM loan. Your heirs are never responsible for your debts. Any remaining equity belongs to the estate/heirs.
- Will my heirs be able to keep my house? Short answer is yes. It is hard to tell what your home will be worth in X years. Most heirs are selling the homes and keeping the cash.
- My spouse in under the age of 62 do we qualify? You may; new rules went into effect on Aug. 4th, 2014 that allow what is a called a non-borrowing spouse to qualify. At-least one borrower has to be over the age of 62 to qualify.
- How or what determines how much money I can borrow? The calculations for the reverse loan are based on the value of the home, subtracting any outstanding mortgages, it also factors in the age of the youngest borrower, market interest rates, and your overall financial health.
- What are the fees involved? A reverse mortgage is more expensive than a typical cash out mortgage but cheaper than selling to downsize. Fees are rolled into the loan most of the times, below is a list of fees:
– Application fee
– Origination fee
– Monthly service fee
– Closing costs
– Interest rate
- Why has the media criticized this program so much? The media was on the attack due to the program not covering those seniors who were under the age of 62 since after the over 62 borrower passes the loan would become due and payable. This caused many media outlets to cover the reverse mortgage as a way for seniors to loose their homes to foreclosure. The program has since been updated to provide more protections and rights for those who are under 62. Other reasons include high fees – what the media does not cover is the other options and what those fees entail. In reality a reverse mortgage is much cheaper option versus selling and then re-buying a smaller home. Other mortgage programs may have lesser fees BUT do not enjoy the NO monthly payment option.
Why Choose RMLD – Reverse Mortgage Lenders Direct?
- We are not a Bank, Broker or Lender. We are a free comparison service.
- We are an independent company who’s aim is to find you the best quote.
- Never pay any fees to get information or to shop around and get HECM quotes.
- We are members of the NRMLA (National Reverse Mortgage Lenders Association).
- Our exclusive partnerships translate into discounted closing costs for you.
- You only need to fill out one simple form to begin the comparison shopping process.
- If you have any questions we are available free of charge to answer them.
You are not alone in wanting to learn more about the HECM program, below are how many seniors have a reverse mortgage loan by fiscal year:
FY 1990–157 loans
Total = 879,708