| If you are looking at using a reverse mortgage to pull | | | | broker. A mortgage broker works the same as an |
| out equity you have in your home but aren't sure | | | | insurance broker. He or she has relationships with |
| whom are the reverse mortgage lenders you should | | | | several companies and uses those relationships to find |
| speak with, then you will want to read this. As with | | | | you the best deal for your needs. The upside is the |
| traditional loans, such as a 30 year fixed, reverse loans | | | | broker might work with a bank that is running a special |
| are available through many outlets. However, you | | | | and get you the loan on better terms than going |
| should know the difference between them so that you | | | | directly to the bank. One thing to note is mortgage |
| don't pay more than you need to. | | | | broker's work with the wholesale division of a bank. |
| With everything that has happened with the economy | | | | This division is completely different from the retail |
| and the tightening of credit many companies that once | | | | division you would go to get your loan if you went |
| offered a reverse mortgage are disappearing. | | | | directly to the bank. Why is this important? Well you |
| Although, a reverse loan is a relatively safe investment | | | | might be able to get a better loan indirectly through the |
| for banks it's the capital outlay and length of time for | | | | wholesale versus retail division. |
| money to come back to the bank that makes it one of | | | | However, typically mortgage brokers will charge more |
| the first loan programs to go when credit is limited. In | | | | fees and closing costs. I recommend that you start |
| fact, at this time there are zero banks offering their | | | | with your bank to see if they offer the FHA reverse |
| own reverse loan. Don't mistake this for banks not | | | | mortgage loan. Then from there speak with a national |
| offering these loans, they just don't offer them as their | | | | bank. Currently, Wells Fargo and Bank of America are |
| own proprietary product. | | | | two of the best for reverse mortgage loans. Finally, |
| Fortunately, the Federal Housing Administration (FHA) | | | | check with a local mortgage broker. Ask all of them to |
| program offers a reverse mortgage. This has allowed | | | | prepare a GFE, Good Faith Estimate, so that you may |
| the major banks that are FHA approved to keep a | | | | see the costs associated with the loan and |
| reverse mortgage loan program while they have had | | | | approximate interest rate. It's also not a bad idea to |
| to drop any proprietary reverse loan products they | | | | inform each loan officer you speak with that you are |
| might have carried. | | | | comparing quotes with others. |
| The good news is you can go to any national bank | | | | Getting three quotes from reverse loan lenders can be |
| and they should carry these loans. The advantage is | | | | time consuming but it can also save you thousands of |
| you are going direct and this can provide you with less | | | | dollars in closing costs and interest. You will have this |
| closing costs and credibility you might not find | | | | loan for a long time, don't make short time out of your |
| elsewhere. | | | | decision. |
| The other alternative is to go through a mortgage | | | | |