HEADLINE:   More Reverse Mortgage Changes

Reverse mortgages are regulated by the government and as such, had limited variability among the lenders. 

That is, for the exact same type of loan, the amount of funds a borrower could receive was the same.  But as the competition is heating up, lenders are offering more flexibility to loan originators around closing costs; Loan originators can keep the financial rewards or can pass the benefit on to prospective borrowers.

On May 6^th, a major lender announced they would cover the entire upfront mortgage insurance premium, which is a substantial part of the closing costs.  Additionally, the lender  provides enough other flexibility to loan originators that it is now frequently possible to obtain a FIXED RATE Reverse Mortgage WITH ZERO CLOSING COSTS (especially for homes valued in excess of $625k).

That means, that if you previously did NOT qualify for a Reverse Mortgage, (perhaps your current outstanding mortgage balance was too great),  it is now possible to get nearly $24k additional proceeds through lender paid closing costs in order to qualify for a Reverse Mortgage.

But these added benefits apply only to fixed rate mortgages, which require that the borrower take all available funds at close and begin paying interest on the full draw.  This is appropriate in some family situations but not in others.

To find the best Reverse Mortgage option for you, it’s all about finding the right lender.  And to find that lender, you benefit from working with a mortgage broker, who has relationships with multiple lenders.  Reverse Mortgages Only is a CA licensed mortgage broker.  We have relationships with multiple lenders and keep track of the ever-changing marketplace – I do the shopping for you.

Reverse Mortgages are all that I do (and have done for several years), providing you with knowledge and expertise unparalleled in the market.  We are a HUD-approved Reverse Mortgage lender and member of the National Reverse Mortgage Lenders Association (NRMLA), firmly committed to their code of ethics.

If you would like more information on the reverse mortgage options available to you, please contact my office at (650) 591-4430.