A recent article published by Bend Weekly offered some good advice to reverse mortgage borrowers: shop around. The article points out what you've heard here again and again: the reverse mortgage market is changing. With that change comes increased options for borrowers. And that means that you should take the time to compare different reverse mortgage loans before selecting the one that is right for you.
The article reminds us that there have long been three different reverse mortgage loans that most people consider when they start looking at their loan options. However, they also point out that the number of lenders and types of loans has increased significantly in recent years due to the increased interest in them.
"For years there have been three primary reverse mortgage plans available - Federal Housing Administration's Home Equity Conversion Mortgage (HECM), Fannie Mae's Home Keeper plan, and the Financial Freedom Cash Account. The plan's concept has become more popular in recent months and years with senior homeowners. This has motivated many of the nation's large banks and mortgage lenders to start offering reverse mortgage products."
Since there are now additional lenders and changes to the existing loans, it is important to make sure that you understand the terms of your reverse mortgage loan before agreeing to it. This can prevent regret down the line which sometimes happens for people who don't do their research in advance. The best way to avoid this kind of regret is to work with a financial planner who can assist you in weighing all of your loan options and making the right choice.
Question of the Day: Do you know someone who has suffered reverse mortgage loan regret?
