Reverse Mortgages are too expensive?

NO

Every loan you will ever do on a home will have two variables that effect the cost of the loan. Those variables are "Points" and "Interest Rate"

The truth is that banks and loan officers always get paid. They either get commissions on the points paid up front, or they get paid for the interest rate that they were able to get you to agree to.

Reverse Mortgages have a high cost up front (points) and a very low interest rate. Typically you will pay the loan origination fee of approximately 2% of the loan value. You will also pay the mortgage insurance that is required on all reverse mortgages. This is also 2% up front. (Please note that these fees are incorporated in the loan and are not out of pocket expenses.)

What you get is the lowest interest rate in the industry. This means that the mortgage brokers are getting paid well for originating the loan, and you get a low interest rate.

There are a variety of reverse mortgage products, so be sure to check all your options carefully to see which loan will cost you the least over the time period that you need the loan. If you plan to sell your home in the future you will want the loan to accumulate the least amount of interest. If you are planning on keeping your home for life you may want to maximize the amount of money coming to you now or in monthly payments.

If you have any questions about reverse mortgages, feel free to call me at 888-277-4990. I will be glad to help in any way I can.

Bob
bob@az62.com
623-214-6663