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Why Reverse Mortgage Rates are different from money lenders?

by RichardJohnson from Texas, Texas. Apr 25th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,414 contributions

Fees and costs vary from lender to lender, however in general, Reverse mortgages will cost you more to originate than a traditional mortgage... the best advice I can give you is to deal only with a local, experienced Reverse Mortgage Lender, since there are many differences in a RM vs a traditional mortgage, you want to be sure your broker has knowledge of the product... .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Apr 25th 2013
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James Mazzola (Mazzola)
#110 ranked lender in New Jersey - 313 contributions

Yes, the fees are different. So shop around

Apr 25th 2013
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Gilbert Barteau (gbarteau)
#104 ranked lender in Texas - 41 contributions

Richard, interest rates for FHA reverse mortgage loans are not that different from rates on other types of mortgage loans. You can find adjustable rate reverse mortgage loans for 30-day LIBOR + 2.25% (currently about 2.45%). Fixed rates tend to be a little higher than 15 and 30 year mortgage rates, primarily because lenders have no way of knowing the term when the loan is made. Depends on how long the homeowner lives, and at that residence.Feel free to call me for more details or for a quote at 888-360-9991.

Apr 25th 2013
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Charlie Sparks (CharlieSparks)
#9 ranked lender in New Mexico - 397 contributions

Some lenders elect to have a higher rate so the closing costs will be less. When comparing rates also compare the fees you are charged. If rates are lower fees should be higher.

Apr 25th 2013
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Jackie Stults (jstults)
#40 ranked lender in Illinois - 15 contributions

Dear Mr. Johnson,Over the last several years there have been significant changes to the reverse mortgage program. As a broker we shop the top 4 reverse mortgage lenders in the nation for you. Additionally, reverse mortgage originators are not created equal. I strongly recommend that you find an experience professional who specializes in reverse mortgages ONLY! There is no substitute for experience, and while some will tell you that a reverse mortgage is a simple transaction, nothing could be further from the truth. Feel free to contact me at 1(800)486-8786 ext. 702 for a complete suitability report. To your retirement success! Jackie

Apr 25th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

ALLLLLL Loans are more than just a Rate!!! If a rate is lower then you will have higher fees, and the if the rate is higher you will have lower fees but ALL loans have fees so you need to compare what is best for your specific situation. Do you want a lower rate with more fees or a Higher rate with less fees but keep in mind that getting a lower rate is not always the best situation.

Apr 25th 2013
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Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

reagdless of what media and advertising would like you to believe.

Apr 25th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

It is a totally different product.

Apr 25th 2013
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David Webber (DavidWebber)
#61 ranked lender in Texas - 71 contributions

No set policies for all lenders and the programs are relatively new, You must validate that they are not overcharging for fees that are not needed.

Apr 25th 2013
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Peter Botros (PeterBotros)
#71 ranked lender in New York - 895 contributions

Each Lender has a different set of fees, shop around based on interest rate and fees.

Apr 25th 2013
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Korene Clopine-Seaman (korene)
#68 ranked lender in Arizona - 85 contributions

Richard, as a mortgage banker, loans and rates differ just like buying a new car from one automobile dealer of the same brand charge differently for the same car.As a mortgage banker that has been in the business for a long time, I believe it still should come down to professionalism, knowledge, communication, rates and fees in that order. I do not original loans in Texas. I would recommend you use a Texas based mortgage originator banker, I can recommend a number of them that are very knowledgeable, very professional, and will communicate with you during the process and the rates and fees will be highly competitive.I am a Mortgage Banker in metro Phoenix, AZ. I lend in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders, WE CLOSE LOANS!

Apr 25th 2013
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Brad Cahoone (info@globalhomefinance.com)
#91 ranked lender in Texas - 1,042 contributions

Richard, Good afternoon. My name is Brad Cahoone. I am a mortgage broker here in Lewisville, TX. Reverse Mortgages do vary widely on rate and closing costs between different lenders due to their profitability requirements and what programs are available. The rate is often inversely related to the closing costs on a loan. The more closing costs the lower the rate and the higher the rate the lower your closing costs will be for the same type of loan. Here is another question I am not sure if anyone has approached you with, but have you evaluated if a reverse mortgage is the right product for you? You should definitely sit down and talk to an experienced Reverse Mortgage Loan Originator before deciding that is the best route for you. Be certain with who you are dealing with as this is a major decision affecting you and your family. I hope you get the best program for your needs. Brad Cahoone - NMLS ID 184176- bcahoone@globalhomefinance.com - 972-724-3222 x 227 - http://globalhomefinance.com

Apr 25th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

The 2% FHA up-front fee, and the FHA required loan origination fee ($2500-$6000) on the ARM loan are the major differences in closing costs. Since the lender gets NO money each month in payments, the lender has to wait until the borrower dies or moves out of the house to get paid. The present value of money theory states that money now is worth more than money to be paid in the future. Therefore, a higher interest rate is deserved, since no money is received on a current, regular, monthly basis.

Apr 25th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

If you are ready for a reverse mortgage refinance quote, fill out the request form on this site, for a prompt response.

Apr 25th 2013
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Sara Deere (Saraloveshomeloans)
#39 ranked lender in Kansas - 532 contributions

Usually going with a loan originator who works directly for a lender will lower the costs overall.

Apr 25th 2013
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Raymond Denton (Raymond)
#11 ranked lender in Ohio - 224 contributions

They're not different - they're very competitive.

May 4th 2013
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

There are new programs out now, with lower closing costs and a fixed rate, that have the line of credit feature. Contact me if you need help. Dave Metsker, 503-620-2239.

Mar 21st 2014
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