“An ideal candidate is someone who is having a hard time making ends meet, so to speak, but has the equity in their home,” says Levy. “It’s not a coincidence that that equity is there. They built it over time and that’s an act of success.”
A previous version of the interview had Josh Zinner, co-director of the Neighborhood Economic Development Advocacy Project, give his two cents on the costs associated with reverse mortgages.
“They can charge up to 6 percent in origination fees, there’s another 6 percent in mortgage insurance premium. So for a $200,000 reverse mortgage, that’s $24,000 in fees,” says Zinner. “You may borrow $120,000 through a reverse mortgage and by the time that senior passes away, there may be $250,000 owed if you add in the fees and the interest.”
Levy told RMD the company contacted NY1 and it removed the Zinner segment. Check out the final version at the link below.