How To Find The Best Reverse Mortgage Companies
Doug Smith

Defined Tag: Reverse Mortgage Companies.

All companies that offer the service will claim to be the best reverse mortgage companies. The challenge is to separate hype from truth. Your reverse mortgage will be one of the steady income streams of your retirement, so you definitely want the best company and the best deal. Senior citizens are frequent scam targets, so it is doubly important that you do business with only the best reverse equity companies.

As a reminder, a reverse mortgage is a financial instrument for getting money out of your home's equity if you are 62 years or older, and own your home (or have most of it paid for). It is almost like selling your home back to the bank. It's not really a sale, it is a loan. During the life of the reverse home loan, the bank pays you mortgage payments based on your home's value and your age. The payments can be periodic, a lump sum, a line of credit, or a combination of the three. Interest also applies on this loan, but it is deferred.

When you move or become deceased, the reversed home loan becomes due. Your surviving family members can either pay off the reverse mortgage on their own, or sell your house to pay off the loan. The interest must be paid at this time too. By the way, the deed to the house remains in your name throughout the entire process.

It is a major financial transaction, so you want to deal with only the best mortgage reversing companies. You want to get the most money for your home equity, with the lowest interest rate. The best place to start is the website of NRMLA, the National Reverse Mortgage Lenders Association at ReverseMortgage.org or NRMLA.org. NRMLA is the trade and advocacy union for the reverse mortgage industry, promoting the practice and recommending loan companies. The NRMLA website can show you reverse lending companies in your state, and you can narrow it down to your specific area. NRMLA maintains a strict code of ethics, so you can trust their mortgage company recommendation.

Narrow the list of lending companies to a dozen or so. Then begin calling each R.M. company to see what they offer. You might be able to do this research on the internet, from the comfort and convenience of your home. Look for low interest rates, because you (or your survivors) will have to pay interest on the mortgage amount loaned to you. Look for payment flexibility, which will allow you to receive monthly reverse mortgage payments, a lump sum up front, or even a line of credit.

Finally, get and call references from each company in which you are interested. You are about to make a financial deal that will help fund your retirement, so you want the best reverse mortgage companies working for you.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited.