Reverse Mortgage Lender - part 1

by Troy Shellhammer

Since the Reverse Mortgage has become a federally regulated program, many people have found themselves asking, "How do I choose the right Reverse Mortgage Lender?" This article will discuss some of the things that will help you in choosing the right lender, the best cost, and the safest choice in whether a Reverse Mortgage is right for you and your families future.

When the FHA and the Department of Housing and Urban Development first took over the Reverse Mortgage industry, the first thing they did was regulate the interest rates of all Reverse Mortgage products for all lenders. Every Reverse Mortgage Lender in the United States has the same interest rate for their Reverse Mortgages. When looking at different lenders, you will not be able to find any rate that will be different. All Reverse Mortgage interest rates are adjustable, however they are tied into very conservative indexes such as the 1-year Treasury bond or the LIBOR index. The adjustment made on these rates are very moderate and you will usually not expect to see a difference 1-2 point difference in the initial rate and the interest rate that it will be at the end of the loan.

The Federal government has also dictated the amount of closing cost that each Reverse Mortgage lender can charge for the Reverse Mortgage that fits your situation most efficiently. This is also a non-disparity between lenders that will not aid you in selecting the right lender to do your Reverse Mortgage. The FHA has allotted that for the most popular product, the HECM, the amount of closing cost will be 2% for origination, and 2% for a mortgage insurance premium. These costs are standard and mandatory. No lender will be able to negotiate or remove these charges to try and earn your business.

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Reverse Mortgage Lender

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