Finding the Best Reverse Mortgage Lender
Reverse mortgage is an attractive and appealing scheme for individuals above 62 years of age. It allows them to acquire a loan based on the equity of their home or any other property, without having to sell the place. However, you need to be careful while taking these loans because a bad reverse mortgage lender can land you in grave trouble. Indeed, in the previous few years, the number of reverse mortgage scams has increased significantly.
The process of finding a good reverse mortgage lender is similar to that of finding a good mortgage lender. When you approach a lender, you should try and ask as many questions and queries as you can in regards to the mortgage. A good idea is to do a bit of research regarding reverse mortgage before approaching the lender so that you know the right questions to ask. If the answers you get are obscure, then the lender is either trying to mislead you or he/she is not good at his/her job. Therefore, it is better to approach another one.
A good reverse mortgage lender will always try to find ways in which you can get the maximum amount of loan money. However, finding a lender who will put your interests before his/her own is rare. To find a good reverse mortgage lender you can visit the website of the NRMLA (National Reverse Mortgage Lenders Association) that provides details on good reverse mortgage lenders. On the website, you simply have to type in your area and you will be provided with a list of reputable lenders in and around your area. All of the lenders listed on the site agree to abide by the code of conduct established by this association.
If you need information on the current reverse mortgage rates, you can find it on various websites. You can also consult people around you who may have taken similar mortgages and ask them about the rates. In addition to the interest rates, another thing to look out for is the initial charge for reverse mortgage. These usually total up to $1000. However, there may be variations and you should be aware of the current rates, to ensure that fraudulent lenders do not deceive you. Other means of comparing lenders include:
• The length of time they have been active
• Their reputation in your area
• Various reviews that may be available on websites
• Online resources like mortgage calculators
While choosing a reverse mortgage lender, always remember to approach a number of different lenders to find the best deal. Never settle for the first lender you come across.