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Getting a reverse mortgage can be relatively painless if you are informed and knowledgeable about your financial options. MyNoteMarket has collected information about the reverse mortgage process and resources to help you research your options. Use the Education section below to quickly understand: Once you have gone through the Education section, use the additional Resources to research potential lenders, review current news and blogs, and get links to tax and legal sites. |
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How to Get a Reverse Mortgage |
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1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a financial advisor or reverse mortgage professional to understand all the details. Check out the following sites for more reverse mortgage information: |
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Reverse Mortgage Due Diligence |
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There are numerous potential lenders for your reverse mortgage, it is hard to choose the right one. But with a little due diligence(research), you can select several that are reputable and right for you. One important point you should be aware is whether you are dealing with a principal or broker. If you a dealing with a principal, you may get better pricing due to the absence of the broker fee. Most principals use brokers to bring them business but there is a definite cost associated with this added layer of service. But brokers can be valuable in finding multiple lenders and could potentially get better pricing even after factoring in their fee. The lender should pay the broker fee, not you. Here is a guide to help you choose the right buyer: - How long have they been in business?
- Is their contact and business information verifiable?
- Are they bonded, insured, and licensed?
- What is their underwriting criteria?
- How is their Better Business Bureau rating?
- Do they handle all types reverse mortgages?
- How many reverse mortgages do they do a year?
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Reverse Mortgage Terminology |
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Here is some basic terminology for reverse mortgages: 203-b Limit - The dollar limit for the amount of a home's value in a specific county that can be used to determine the amount of money you can get from a federally insured HECM reverse mortgage. Appraisal - An estimate of real estate value based upon a factual analysis of a specific real property. For more info see: Real Estate Appraisal - Wikipedia Appreciation - An increase in market value of properly or real estate. Closing - A formal meeting where all documents are signed and verified to complete a transaction on a mortgage. Deed - A written. legal instrument that conveys title when properly executed and delivered. In some jurisdictions, a deed of trust is used as an equivalent to a mortgage. For more info see: Deed - Wikipedia |
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How Reverse Mortgages are Priced |
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Reverse Mortgage are priced using many factors to determine a price or market value for your reverse mortgage. Here are the most common factors: - Market value of your home
- Current market interest rates
- Your age
- Profit margins of the lender
- Any debt to pay off
- Type of program
- All fees and costs associated with originate and maintenance
Use AARP's Reverse Mortgage Calculator for an free estimate. Each potential lender will individually determine how these factors are used to arrive at a price for your reverse mortgage. Pricing can vary by lender. Check out these links for more information: |
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Rev. Mortgage
