Reverse Mortgages Loans - Shop Around to get a Good Deal
If you are considering obtaining a reverse mortgage, evaluate the plans being offered.
Each lender has different terms and options.
I suggest you obtain as much free information as you can prior to discussing the possibility with a lender or Reverse Mortgage Specialist.
Knowledge is definitely power.
You need to proceed from a position of strength when approaching lenders.
You will be able to ask questions that could put you in a position of obtaining better financing.
You may find that you really don’t need to incur the expense of a Reverse Mortgage Vehicle.
Perhaps you can use a loan to make you home repair or improve the features of your home.
There is help in this area – go to http://www.
eldercare.
gov or your local Area Agency on Aging for information leading to low cost financing.
The federally-insured HECM lenders must follow HUD rules.
The interest rates and loan costs will be the same for all of the lenders in this category.
You must still compare the costs of other items such as: 1.
Origination Fees 2.
Closing Cost 3.
Servicing Fees These are the fees that vary between lenders.
Since the total cost of borrowing can be different, you should compare these costs before you conclude your deal.
Generally HECMs and propriety loans have higher costs involved in setting up the loan than you would incur if you obtained other home loan financing.
The costs to obtain the loan are high enough that you should consider how long you will be remaining in the property and if you can find other financing before you make your choice.
It is important you understand what events can cause the loan to be due and payable.
You have three business days after you sign loan documents to cancel it without penalty.
This cancellation must be done in writing.
Do your due diligence before you sign on the dotted line.
Each lender has different terms and options.
I suggest you obtain as much free information as you can prior to discussing the possibility with a lender or Reverse Mortgage Specialist.
Knowledge is definitely power.
You need to proceed from a position of strength when approaching lenders.
You will be able to ask questions that could put you in a position of obtaining better financing.
You may find that you really don’t need to incur the expense of a Reverse Mortgage Vehicle.
Perhaps you can use a loan to make you home repair or improve the features of your home.
There is help in this area – go to http://www.
eldercare.
gov or your local Area Agency on Aging for information leading to low cost financing.
The federally-insured HECM lenders must follow HUD rules.
The interest rates and loan costs will be the same for all of the lenders in this category.
You must still compare the costs of other items such as: 1.
Origination Fees 2.
Closing Cost 3.
Servicing Fees These are the fees that vary between lenders.
Since the total cost of borrowing can be different, you should compare these costs before you conclude your deal.
Generally HECMs and propriety loans have higher costs involved in setting up the loan than you would incur if you obtained other home loan financing.
The costs to obtain the loan are high enough that you should consider how long you will be remaining in the property and if you can find other financing before you make your choice.
It is important you understand what events can cause the loan to be due and payable.
You have three business days after you sign loan documents to cancel it without penalty.
This cancellation must be done in writing.
Do your due diligence before you sign on the dotted line.