Once you have made the decision that a reverse mortgage is right for you, what do you do next?  How can you know that your reverse mortgage lender is giving you the best deal?  Even if you get multiple quotes from several reverse mortgage lenders, do you know what to look for?  Some argue that HUD regulates all the fees and rates so there isn’t that much difference between reverse mortgage lenders other than service.  Well as you can imagine, that just isn’t the whole truth.  While HUD does regulate MAXIMUM fees, there is nothing saying you can’t do better than paying the highest closing costs and rates allowed.  And the lower the rate you receive, the more money you get!  Its how the reverse mortgage formula works.

A blog doesn’t give me enough room to go into all 5 of the items in detail so if you want more detailed information simply go here and you can have a free 7 page report emailed to you.

So what are the 5 key itemes you need to know to get the best deal from your reverse mortgage lender?  Here is a brief summary:

1)    Figure out whether a reverse mortgage fixed rate product is better for you or an adjustable rate.  Choosing the right one will make a big difference in the amount of money you receive.  Rule of thumb is if you need most of the money at closing go with the fixed rate.  If you only need a small amount up front, the adjustable rate may end up getting you tens of thousands of dollars more over time due to the credit line growth factor.

2)    Check out reverse mortgage lenders for the lowest “Expected Interest Rate”.  Based on the FHA HECM formula, the lower the expected interest rate is, the more money you can receive.

3)    Your reverse mortgage lender should give you the lowest monthly servicing fee available, which is currently at $25.  Most lenders charge $30 or $35 and just tell you that’s what everyone pays.  This seemingly small difference will get you an additional $800 - $1600 at closing plus $60 - $120 less in costs each year.  Multiply that by 10 – 30 years and the money really adds up.

4)    Shop for the lowest origination fee, and ignore all other closing costs when you compare reverse mortgage lenders.

5)    Find a reverse mortgage lender that will allow you to find your own FHA appraiser.  The right appraiser can make an enormous difference in the amount of money you receive at closing and in how smooth the lending process will be.  Check with your local real estate professional and get a quality referral for the right local appraiser.  If the lender won’t allow it, then move on.  While on conventional mortgages you can’t be involved in finding your own appraiser, FHA reverse mortgages do not have that restriction.

Well there you have it.  Go here if you would like a detailed free report emailed to you.  You can also get a no obligation quote there as well.