I’ve been doing reverse mortgage for over five years and one of the largest drawbacks of the loan was the upfront origination and servicing fees. This has made this a very expensive loan. I’m very proud to say I work for the first lender to listen to the concerns of seniors and eliminate those fees. Origination fees were 2% of the appraised value or a minimum of $2,500. While the servicing fees could be as much as $5,300 based on the borrowers age. So the savings could amount to $8,000 or more. The interest rate is 5.56% and is a fixed rate.
This loan is a great product for someone who wants to eliminate their mortgage payments, help out their children, remodel their home, make their home accessible, pay for medical expenses and/or homecare, travel, purchase a new home or diversify their assets.
This is the loan of the future and with the new product making it more affordable I can see reverse mortgages become part of the mainstream mortgage industry.
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This article has been republished in part or full from an Age in Place Professionals member's website. Read the orignal article at the author's website >>