5 Top Things to Ask Reverse Mortgage Brokers

If you or a loved one are considering the service of reverse mortgage brokers, there are some important questions to ask when comparing brokers and during the process of completing a reverse mortgage application.

1 - What are the Fees Involved and what is the Initial, Out-of-Pocket Expense?

Although the homeowner will be getting paid for borrowing against the home's equity, there are still upfront costs involved with this type of mortgage loan, including closing costs.

2 - How will the Money be Received?

Finding out how you will receive your loan monies is critical. Will you receive regular monthly payments or a lump sum? Will there be a line of credit available for use?

3 - How and when does the Loan Need to be Paid Back?

Your lender will be able to address pay-back methods and guidelines with you, the borrower. 

4 - Can my Children, or other Heirs, keep the Home after I have Passed Away?

This is a very important question. Find out what your heirs will need to do once you have passed away in order to keep the property.

5 - What is the Interest Rate on the Loan?

As is the case with any type of mortgage loan, it is important to find out what interest rate you are being approved for. Interest rates vary from one lender to another, so be wise and shop around.