Who are reverse mortgage lenders? How do you choose which is the best for you? We’ve come up with some points that will help you narrow your choices and pick out the best reverse mortgage lender for your need.
Not all reverse mortgage providers are made equal. One of the things that you need to consider is the cost of your mortgage application. Some lenders will charge you less but be wary of the possible higher interest rate charged to you. The other end of the pendulum would be lenders who charge you seemingly higher quotes upfront but will give you a better interest rate in the long term. So do your math and look for which of the two will be beneficial for you.
Bear in mind that the cost will depend on the kind of reverse mortgage you will get. With a HECM, before closing, expect to pay the appraisal cost, closing, origination fees, and the first mortgage insurance premium. For the duration of your mortgage, be prepared to pay for the interest rate, mortgage insurance, and the servicing fee.
There is another important aspect to consider when choosing your reverse mortgage lender – customer service. The lender that you are going to choose will be the one helping you throughout the process. So make it a habit to check out reviews and check complaints or comments from previous borrowers from the Better Business Bureau. You will see if the lender will take care of you and answer your questions professionally to your satisfaction.
Cost and commitment for service are two of the most important things to consider when applying for a reverse mortgage, but there are more. Don’t forget to check out the other articles we have prepared for you about a reverse mortgage. It will help you decide if applying for a reverse mortgage is for you and will let you know what to prepare for when you apply.