How to Find a Mortgage Lender for a Reverse Mortgage

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By CM Herold
User-Submitted Article

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If you and your spouse are at least 62 years old, own and live in a one to four unit dwelling, and have enough equity in your house, you both probably qualify for a reverse mortgage on your principle residence. A reverse mortgage is a loan against your property that increases instead of decreases like a traditional loan. A reverse loan has to be paid in full when both owners pass away, move from the residence, or sell the home. If you are considering a reverse mortgage, be sure to educate yourself about the process and find a mortgage lender you can trust.

Difficulty: Easy

Instructions

Step 1

Choose a mortgage lender for a reverse mortgage by shopping around for costs. Reverse mortgage fees can be expensive. Make sure to ask about the interest rate, loan origination fees, all closing fees, and monthly servicing fees. Get everything in writing. If a mortgage lender knows you're shopping for the best deal they're more likely to reduce costs to get your business.
Step 2

When asking about the interest rate make sure to get a specific number. Find out how much the interest rate will go up and how often. Find out what index the interest rate increases are associated with.
Step 3

Find a mortgage lender who has experience with reverse mortgages. Choose a mortgage lender who explains the process well and can answer all of your questions.
Step 4

Check the mortgage lender's company with the Better Business Bureau. The link for the BBB is located in the resource section below.
Step 5

Check the real estate broker's license with your state's department of real estate. Most states have easy online access to information about a company's or person's real estate license. Make sure the company or person is not on probation and does not have any derogatory information associated with the license.
Step 6

Educate yourself about reverse mortgages. Reverse mortgages can be complicated. Check out the links in the resource section below for more information about reverse mortgages.