Retirement News with Professor Craig

Retirement News with Professor Craig

The Retirement News blog is dedicated to the financial and physical health and well-being of older Americans. 
Whether you're already in or nearing retirement, you will find important, topical information in the blog to help you make informed decisions on your road to retiring more freely.
As a 25-year veteran in the financial services industry and a certified trainer and teacher, Professor Craig's #1 goal is to help you thrive in retirement with financial peace of mind. 

Subscribe Now



Reverse Mortgage Solutions: Choosing the Right Reverse Mortgage Lender
Financing Retirement, Retirement Planning

Reverse Mortgage Solutions: Choosing the Right Reverse Mortgage Lender

If you’re retired — or getting close — have you considered the benefits of a reverse mortgage loan to help you financially navigate this stage of life? Instead of tapping into your Social Security benefits* or retirement savings, it’s smart to educate yourself about reverse mortgages, and how to choose the right reverse mortgage lender. 

How a reverse mortgage works

A Home Equity Conversion Mortgage (HECM), or reverse mortgage, is available exclusively to homeowners and homebuyers age 62 and older. It may allow you to borrow against the equity in your home, so you have cash to use today or a line of credit for whenever expenses arise — or both. A reverse mortgage can also be used to finance the purchase of a different home.

Funds from your reverse mortgage are income tax-free** and can be used to refinance your current mortgage or consolidate debt — so you can free up funds for other things, and help you avoid using your retirement savings too soon. As with any mortgage, the borrower is responsible for the home’s property taxes, homeowners’ insurance, and property maintenance.

Choosing the reverse mortgage lender that’s right for you

Applying for a reverse mortgage is a big decision that could benefit you and your family for years to come, so be sure to choose a reverse mortgage lender based on your long-term financial goals. There are many reverse mortgage lenders offering competing services at varying costs. Plan to research and connect with multiple providers, and ask the representative lots of questions about their products, their rates and fees, and their experience with reverse mortgage loans. It’s also important to work with a loan specialist you trust and feel comfortable with — someone who is responsive to your individual needs and concerns.

Here are three major areas to keep in mind when selecting your reverse mortgage lender:

1. Fees and interest rates of a reverse mortgage. As with a traditional mortgage, you will pay interest on your reverse mortgage loan. The interest rate can make a big difference in the total cost of the loan, so choosing a lender with better rates can save you significant expense over the life of the loan. Shop around and ask about current interest rates from multiple lenders. Rates can be fixed or adjustable, and you will need to decide which is best for your unique needs and goals.

2. Reverse mortgage up-front and ongoing costs. With an FHA-insuredϮ reverse mortgage (called a Home Equity Conversion Mortgage, or “HECM”), all applicants receive reverse mortgage counseling, with the fee paid directly to an independent counseling agency. Other up-front costs include a government-required mortgage insurance premium, and an origination fee and closing costs, which can vary by state and lender.

In addition to interest, ongoing costs include an annual mortgage insurance premium. Some lenders also charge a monthly servicing fee.

Be sure to ask for estimates for the fees and costs from each lender you consider. You can get a written estimate right up-front by providing certain basic information. Afterwards, the lender you choose is required to provide you with detailed disclosures regarding costs twice during the loan process: when you submit your application, and again when your loan closes.

3. Post-loan service and support. One last consideration when choosing a reverse mortgage lender: Do they continue to service your loan after your closing, or do they sell it? If it’s the latter, you will be working with a different company rather than your original lender. Keep in mind that reverse mortgage loans are often sold multiple times, just like traditional mortgages. If continuity is important to you, consider choosing a lender that services their own loans.

The financial freedom of reverse mortgages

Whether you’re planning your own retirement or helping a loved one prepare, a reverse mortgage loan can help secure the resources for a more comfortable financial future, with less financial worries. And the right reverse mortgage lender can help simplify the process by answering all your questions, addressing any concerns promptly and in a straightforward way, and helping you determine the best course of action for your individual financial circumstances.

Learn more about reverse mortgages from Reverse Mortgage Funding, or call (888) 277-1567 to set up a meeting with a licensed reverse mortgage specialist.

*Consult a financial professional. Visit

**Consult a tax professional.

ϮThis material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.



Subscribe to Retirement News with Professor Craig

Join our mailing list to get the latest in lifestyle content, financial advice, news and information from Professor Craig to live a better retirement.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

A More Flexible Home Equity Loan

If you’re 62 or older, there is a home equity line of credit option that offers greater financial flexibility than a traditional Home Equity Line of Credit (HELOC). It’s called a Home Equity Conversion Mortgage (HECM) line of credit. 
If you have an existing mortgage or home equity loan you could refinance them with a HECM line of credit and get enhanced benefits, including a flexible payment feature and a line of credit that GROWS when left untouched.
As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and keeping your home in good condition.

Equity Elite Reverse Mortgage

Put Your Home Equity to Work for You

Get Your Free Reverse Mortgage Quote

By clicking "CALCULATE", you are providing your signature and express "written" consent to be contacted by or behalf of Reverse Mortgage Funding LLC, its affiliates and/or its agents (collectively Company) at the telephone, email or mailing address that you have provided for purposes of fulfilling this inquiry about reverse mortgages and/or the Company's products or services, even if you have previously registered on a "do not call" government registry or requested Company to not send marketing information to you by email and/or direct mail. You agree that the Company may use automatic telephone dialing systems and prerecorded voice messaging in connection with calls or texts made to the telephone number you provide even if the telephone number is assigned to a cellular or mobile telephone service or other service for which the called party is charged. You understand that you are not required to consent to receiving autodialed calls or texts as a condition of any reverse mortgage and/or purchasing any Company products or services. If you do not wish to authorize Company to contact you in this manner, you can call 888-277-1567 to complete your request. You understand that you can revoke this consent at any time.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.