Fox Business News features a new article on reverse mortgages covering the reduced fees and the potential for additoinal principal limit reductions in October.
“There are some seriously reduced fees: there’s no origination fee most times, no monthly servicing fee, and sometimes there’s no upfront insurance on the fixed rate,” says Brian Brown, mortgage manager at Lenox Financial Mortgage. “If seniors are considering the program, they need to move on it simply because the HUD is probably going to be decreasing the principle limit by anywhere from 5 to 20% by September or October this year .”
The article recommends you shop around and compare the different offers from lenders.
“I highly recommend speaking with several reverse mortgage lenders and/or brokers,” says Kenneth Klawans, president of iReverse Home Loans. “While cost should be one consideration in choosing who you work with, you must also feel comfortable with the knowledge and abilities of the loan representative.”