Reverse mortgage banks - how to avoid their scare tactics
When you are looking to apply for a reverse mortgage do you look for reverse mortgage banks or reverse mortgage brokers? A broker might be the better way to go because if they are on the up and up they should be able to broker a loan for you and keep you from having to pay exorbitant fees to the banks and keep the scare tactic to a minimum.
Scare tactics? yup, some reverse mortgage banks will charge borrowers huge origination fees and higher margins. The scare tactics are used to make the borrower stay with the bank because the bank tells the borrower that if they go elsewhere they may not get their money on time each month. This is a bunch of BS but if you do not do your homework then you may get stuck paying the price.
The banks may tell the borrower that they are paying for the HUD mortgage insurance but not that the HUD mortgage insurance ensures that they will get their money every month and will not have to fight to get it. Remember, if you are paying for the HUD mortgage insurance one of the things it insures is that you will receive your payment at the same time every single month. Do not get sucked in by the banks and their BS. You can get a better deal with a broker if you find a good one.
If your bank is one of these banks who sucker people into paying higher fees the it stands to reason that you will not be getting all of the money you are due. These fees can add up to thousands of dollars you as the borrower lose out on over the length of the loan. Keep your money and find a better deal.
Most reverse mortgages today are the HUD Home Equity Conversion Mortgages. They are government insured and the FHA certifies that all borrowers get their money when they are supposed to. It makes no difference which lender you choose you have the insurance that guarantees you get your money.
A reverse mortgage broker can broker a deal with lower margins and lower origination fees so you keep more money in your pocket. Brokers usually have more than one program that they have access to and so they can offer the borrower a program that fits their needs better than a bank that has only one program available.
I am not saying that reverse mortgage banks are not the way to go but make sure you find out what they will charge you for their services before you commit to anything. You have worked hard all your life and now just want to relax and enjoy your retirement. You do not need a bank trying to take advantage of you in your later years so find a good bank or if there isn't one that will work with you and give you lower fees and margins then find a good reverse mortgage broker to do the job for you.
TAGS: reverse mortgage banks
Article Source: Messaggiamo.Com
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