Reverse Mortgage Companies
Who Can You Trust?
If you're a homeowner above the age of 62 with reverse mortgage companies, you can borrow money from several mortgage companies based on your home's equity also know as reverse mortgage refinancing.
The opportunity is open if you can meet the requirements, so you must research reverse mortgage facts to see if you qualify. It is also important to familiarize yourself with the reverse mortgage industry before contacting any lender.
Just like any loan, a reverse mortgage refinancing agreement is subject to certain conditions which you should carefully study before inking a deal. One area you should pay particular attention to is the subject of reverse mortgage fees.
With the recession forcing many senior-citizen homeowners to apply for reverse mortgage loans to augment their retirement incomes, there has been an increase in dubious mortgage companies taking advantage of cash-strapped borrowers.
They're out to make a quick buck, charging hefty fees up front even as their services leave a lot to be desired. To help you steer clear of these unscrupulous lenders, here are a few things to keep in mind:
Finding Reverse Mortgage Companies You Can Trust!
What to Look For
The first indicator of a reliable provider is the length of time they've been in the business. There are many "instant" lending companies that sprouted as the economy floundered and many of them could be taking advantage of people who are desperate for loans at any cost.
Those who have been around long enough have stable financial resources and verifiable track records worthy of trust.
Where to Look The Best Companies
The internet has valuable resources to help you search for the best reverse mortgage lender near you. First stop-and probably the best resource - is the website of the National Reverse Mortgage Lenders Association (NRMLA).
Set up in 1997 by the reverse mortgage industry, the NRMLA looks after the best interests of reverse mortgage applicants and publishes a list of certified lenders by state.
Another trustworthy source of approved reverse mortgage companies is the Department of Housing and Urban Development (HUD) which also publishes an official list on its website.
What They Offer
Most mortgage companies offer adjustable loans with interest rates that change monthly or annually based on the computation of the interest rate plus the margin that the lender is charging.
There are also a few providers that offer fixed reverse mortgages with interest rates that remain the same for the duration of the loan.
How Much They Charge
Fees vary depending on the lender and the type of reverse mortgage loan you apply for. They include monthly fees for disbursing payments, an application fee and closing costs inclusive of charges for the closing agent, recording and title policy.
On top of these, companies will require you to pay mortgage insurance premiums. It protects them from any loss if your home's value is less than the amount owed at the loan's maturity.
Choose Wisely Avoid Reverse Mortgage Scams
First rule of thumb is to learn everything about reverse mortgage facts so you know what you're getting into. Equally important is to compare costs and services and letting your prospects know that there are several of them which you are considering. That should make them give you the best deals right from your first meeting.
Of course, your first instinct is to choose the least expensive provider. But in case of parity offers, go with the most sincere and responsive of the companies you've talked to.
If You Read Nothing Else - Read This!
Return from Reverse Mortgage Companies to Reverse Mortgage Information
Return from Reverse Mortgage Companies to Debt Elimination Programs