Reverse Mortgage Lender Overview
Edited by Harry Jensen
You can apply for a reverse mortgage from any HUD-approved reverse mortgage lenderMost types of lenders offer reverse mortgages including banks, mortgage bankers and mortgage brokers- Many larger, national banks, however, do not offer reverse mortgages
Mortgage bankers are the most common type of reverse mortgage lenderMany mortgage brokers work with a network of reverse mortgage lenders and are able to compare rates and fees from multiple competing lenders to find the reverse mortgage that is right for youYou should treat the reverse mortgage process like you would any other major purchase, such as buying a car -- shop around, compare proposals from multiple lenders and negotiate the best terms for your reverse mortgage- Remember that the interest rate and closing costs, especially the lender origination fee, are subject to negotiation between you and the lender
We highly recommend that you speak to at least four lenders when shopping for your reverse mortgage including one mortgage broker and one mortgage banker- Gathering and comparing reverse mortgage proposals from several lenders will help ensure that you receive the lowest interest rate and fees for your mortgage
- Compare the interest rate and fees outlined in the lender proposals and negotiate the best terms for your mortgage
- For example, if lender A offers a lower interest rate but higher fees than lender B, see if lender A will reduce their fees to match lender B
It takes extra time to compare lender proposals but spending an extra hour or two shopping your reverse mortgage business can save you thousands of dollars over the life of your mortgageAbout the author
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