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.