About

Is a reverse mortgage right for you? You will have to decide that for yourself but it was one of the best decisions I ever made. Reaching the decision to use the equity in our home to increase our retirement income was not an easy one for my wife and myself.

Like many seniors, we looked at an equity line of credit to fill an increasing income shortfall in our retirement years. We quickly decided that this was not the way to go because the interest rapidly depletes what is already a smaller monthly income. Sort of self-defeating. You may find yourself with no equity at all left in your home.

Reverse mortgages are one of the safest, most heavily government regulated sources of extra income for your retirement years. And because of the regulation, the fees and closing costs are higher than a standard mortgage.

The US Department of Housing and Urban Development (HUD) sets the maximum fee percentage that lenders may charge under this program. So guess what? That’s right. Most lenders charge the maximum permitted and then tell you that it is a Federally regulated fee over which they have no control.

We found this to be true with the first couple of lenders we talked to. One was the bank we had been using for years and which held our current mortgage. Another one was a local lender who has advertised heavily in the senior market and had many glowing testimonials.

Both of these lenders assessed the maximum fees permitted by the FHA.

We found the internet a wonderful tool in our search for the best reverse mortgage and lender for our needs. Don’t be afraid to deal with someone online. They may be able to save you thousands in fees and increase your monthly income significantly.

Our search led us to a lender who was courteous, answered all of our questions, closed the loan quickly and saved us thousands of dollars in fees. It was a painless transaction even though the broker was located in Chicago and we live in the Northwest. In retirement you need all of the money you have worked for. Don’t just give it away in loan fees and don’t be afraid of a long-distance relationship with the lender.

No matter how much we like a reverse mortgage I know they are not for everyone. Study up and if you would like a referral to the company we used (they are nation wide), let me know by using our contact form.

Thanks for visiting our site.

Gerry Marsh