Daily News

MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

Looking For A Reverse Mortgage Lender

If you've decided to get a reverse mortgage loan, the next big decision you will have to make is how to choose the right reverse mortgage lender. There are many out there to choose from, but how do you know which reverse mortgage lender will be the best for you? Keep reading this article to uncover some tips on how to choose the right reverse mortgage lender that will meet your demands and requirements.

The most common type of reverse mortgage loan is the HECM which stands for the Home Equity Conversion Mortgage. This is the only type of reverse mortgage loan that is insured by the federal government. These loans are insured by the FHA which tells a HECM reverse mortgage lender how much they can lend you. This decision will be based on your age and your home value.

Another type of reverse mortgage lender can be a mortgage lender that is state funded. The cash received from a reverse mortgage lender will usually have stipulations on how you can spend that money. You will be able to receive this money in one lump sum but it must be spent for home improvement, to pay taxes or some other pre-approved expense.

When you begin to search for a reverse mortgage lender, do so with caution. There are many good mortgage lenders out there but there are also some dishonest ones. Always check out a reverse mortgage lender thoroughly before you agree to any kind of lending contract.

Another option you have at your disposal would be to enlist the aid of a reverse mortgage lender association. Do a search on the Internet and you'll find a few associations that will help you in finding a reputable reverse mortgage lender in your area of the country.

Read through the AARP website for a lot of great advice on reverse mortgage loans and lenders.

Back to Articles