Reverse Mortgage Companies: Factors to Consider When Choosing a Suffolk County Lender
If you’re at least 62 years of age or getting close to it and you’re looking to make the most of your retirement, a reverse mortgage may be able to help you do just that. If you’re located in the Islip, NY area and you’re thinking about meeting with reverse mortgage lenders to discuss a HECM reverse mortgage, a single purpose reverse mortgage, or proprietary reverse mortgage loan, contact Senior Reverse Network. As one of the most trusted reverse mortgage providers in Suffolk County, we have helped countless people throughout the region turn the equity in their homes into cash. To secure your finances – and your peace of mind – contact Senior Reverse Network today to learn more about this unique financial tool and how it can help you enjoy your retirement to the fullest.
Reverse Mortgage Companies in Suffolk County: How to Choose the Right Lender for You
There are three types of reverse mortgages: single-purpose, proprietary, and a home equity conversion mortgage (HECM). While there are some differences between each type of loan, they’re all common in that each type specifically designed for homeowners who are 62 years of age or older and they allow you to access a portion of your home’s equity and turn it into a lump sum of cash, a line of credit, monthly installment payments, or a combination of all three disbursement options. Additionally, with each type of reverse mortgage, the balance of the loan isn’t due until you permanently leave your residence, whereas with a “forward” mortgage (the type of loan that you took out to purchase your Islip, NY home), you make monthly payments until the loan is paid off.
For many Suffolk County residents, a reverse mortgage provides the financial security and peace of mind that they need when they reach the age of retirement. If you’re thinking of taking advantage of this unique financial tool, it’s important that you choose a reputable lender to assist you with the process. How can you tell which company you should work with? Here’s a look at some important factors to take into consideration when you’re meeting with mortgage companies that can help to point you in the right direction.
Interest Rates and Fees
Just like a traditional forward mortgage, you have to pay interest rates and fees on a reverse mortgage loan. These costs can have a big impact on the total cost of the loan and how much you or your loved ones will have to repay in the future. As such, choosing a lender that offers low rates and fees can help you save a significant amount over the life of your reverse mortgage loan.
When you’re shopping around for reverse mortgage companies in Suffolk County, be sure to meet with several lenders and ask about their current interest rates and the fees they charge on the loans they offer. It’s also important to remember that like a forward mortgage, the interest rates on a reverse mortgage loan can be fixed or adjustable. Be sure to find out what the rates are for both options and ask reverse mortgage companies if they can help you decide which one will best suit your specific needs and goals.
Up-front and Ongoing Expenses
A reverse mortgage is also similar to a forward mortgage in that there are several fees and ongoing costs associated with the loan. Some of the fees and expenses that are associated with a reverse mortgage loan include:
- Origination fees. Also known as lender fees, origination fees compensate the lender who originates the loan.
- Closing costs. The closing costs for a reverse mortgage are similar to those that are associated with a forward mortgage and include an inspection, appraisal, and title search fees. Depending on the company you work with, you may also have to pay fees to check your credit and survey your Islip, NY property, as well as escrow services. If the lender determines that a pest inspection and a flood certification are needed, you’ll have to cover those costs as well.
- Counseling. If you’re getting a home equity conversion mortgage (HECM) or a single-purpose reverse mortgage, you will be required to participate in counseling. For some proprietary reverse mortgages, counseling may also be required. To participate in a counseling program, you must pay a fee. Depending on your financial situation, however, this fee may be waived.
- Interest. With a forward mortgage, the balance decreases over time; however, with a reverse mortgage, the balance goes up, and you are charged interest on the balance over the life of the loan.
- Annual mortgage insurance. If you’re applying for a HECM, you’ll also have to pay premiums for your annual mortgage insurance, and because the loan increases over time, your mortgage insurance premium may increase, too.
The upfront expenses and ongoing costs that are associated with a reverse mortgage can impact the total price you or your loved ones will pay over the life of the loan or when the loan becomes due. Different lenders may charge different rates, and it goes without saying that you want to maintain the lowest expenses possible. Therefore, when you’re shopping around, make sure that you ask reverse mortgage companies about the fees and costs that will be associated with the loan. Ask for a written estimate so that you have something you can refer to while you’re making your decision and a written document that you can use to verify the estimate you were offered when you decide which company to work with.
Service and Support
Finally, you’ll want to find out about the service and support you’ll receive after your loan has been approved. Some reverse mortgage companies continue to service the loans they provide after they go to closing, while others sell the loans. If the provider sells the loan, you’ll have to work with another company or several different companies throughout the life of the loan, as companies that sell their reverse mortgages may do so several times. If stability is important to you and you want to continue working with the same lender that provided your loan, you’ll want to choose a company that services its own reverse mortgages.
Contact Senior Reverse Network for Your Suffolk County Reverse Mortgage Needs
If you’re planning for your retirement, a reverse mortgage loan may be able to help you secure the financial resources that you need to enjoy a more comfortable future. Choosing the right lender for your needs will simplify the process of applying for this unique financial tool and will make your loan more affordable. When you’re shopping around for reverse mortgage companies, be sure to contact one of the most trusted lenders in Islip, NY: Senior Reverse Network. For more information or to schedule a consultation with one of our knowledgeable and friendly associates, please call 800-985-7383 or visit www.srnreverse.com. At Senior Reverse Network, we look forward to helping you make the most of your retirement.