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Are You Paying Too Much for a Reverse Mortgage?
By: Aaron Leslie
There are so many mortgage companies out there these days that offer reverse mortgage loans,
but how can you be sure that you're getting the absolute best deal available? An important
thing to keep in mind when selecting a reverse mortgage would be closing costs.
You should be aware that at the time this article is being written the typical loan origination
fee for the FHA/Monthly ARM program is somewhere in the neighborhood of $6200 to $7200. Again,
this is the average fee for this type of program, but it should not discourage you from shopping
around for a better value.
By looking into this matter a little more I was able to find a company who had lowered this fee
to $3295. (According to my research this would be among the lowest in the country.) Not only does
this save you thousands of dollars in closing costs, but it also allows you to get more bang for
your buck? When it comes to the reverse mortgage loan itself.
Now this pricing research was based upon a FHA HECM (Home Equity Conversion Mortgage) reverse
mortgage loan, but there are other types of reverse mortgage programs available. The FHA HECM
reverse mortgage loan is one of most popular programs utilized today, but there’s also what’s
called a Fannie Mae Homekeeper reverse mortgage loan.
This type of loan has no restrictions on how you may use the money and the funds are tax-free.
Another relatively new reverse loan program available is called a Reverse Mortgage Cash Account.
This loan is the only reverse mortgage program that is available as a Zero Closing Cost loan.
Yes, you heard it right, a no cost reverse mortgage loan!
So you see there are many options and advantages available when it comes to selecting a reverse
mortgage program. Take time to educate yourself in the ways of reverse mortgage loans so that
you can properly discern the correct direction. Also, remember that one of the best things to
do is to shop around and get an idea as to what exactly is out there in the realm of reverse mortgages.
Most importantly be sure to seek counsel from an educated third party that can evaluate your current
situation and determine which loan would ultimately work best for you. Along with many options come
many choices and in the end you want to make sure that you are comfortable with your decision and that
you have received the best value from the program you choose.
Author is skilled in the field of web design with a degree in Media Graphics. If you have any
questions regarding California mortgages visit Ameritek Mortgage. This site includes a wealth of
information and a selection of reverse mortgage programs in California.
Reverse Mortgages Facts
Types of Reverse Mortgages: (click on type to learn more)
Questions? Review our Reverse Mortgage Frequently Asked Questions
Ready To Act?
Apply Now
and choose Reverse Mortgage as Purpose of Loan.
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