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.