You have begun the process of buying a new home and are hearing about using a reverse mortgage for purchase loan. You like the idea of being able to put 40 to 55%¹ down, depending on your age, and not having a principal and interest payment for your life in the home. Once you begin the process of speaking with a lender and getting a quote, however, you are put off by the high closing costs. Sound familiar?
The reverse mortgage loan process has changed as of April 27, 2015 to become more like conventional loans. No longer will you be able to call multiple lenders and get an accurate quote based off of an estimated home value, mortgage balance, and youngest homeowner birth date. To get an accurate quote, you’ll need to be prequalified by an experienced reverse mortgage specialist. Talking to a loan officer that closes a handful of reverse mortgages per year is dangerous due to their part-time attention to a complex, dynamic business.
In this space, we’ll attempt to explain some of the intricacies of the reverse mortgage and keep you up to date with what his happening in this small part of the mortgage world. We’ll also discuss some general topics that are focused on aging, health, travel, etc. that you might find useful in your day to day life.
Our goal is to educate our readers about reverse mortgages so that they can make well-informed decisions when considering a reverse mortgage. We love feedback, so we encourage you to share your thoughts on our posts or other matters. If you have a reverse mortgage topic that you would like to see discussed, please contact us.