Cautions & Safeguards
If you are in the process of a searching for a Reverse Mortgage, you need to make sure you are using a reputable lender. Not all Reverse Mortgage lenders are FHA approved. FHA approval is extremely important, but your research should not stop there. Here are a few scenarios that you should BEWARE OF!!
With the growing popularity of Reverse Mortgages, there are many places to find FREE information on how the program operates. Beware of companies that ask for money from you up front. The only fee that is sometimes required up front is an appraisal fee. The appraisal fee normally ranges from $300 - $500 and should only be asked for after counseling has been completed and a formal application has been completed. A fee in exchange for Reverse Mortgage information is not permitted. There are many places to request this information and we can assist you on where to find it free of charge.
Doing a Reverse Mortgage is a HUGE decision and it should not be made alone. Beware of lenders that do not want you to consult with family or a trusted advisor. Any reputable lender should suggest, and highly recommend, that you get a trusted person involved in your decision making. It is always a good idea to have someone you trust to assist with the process. Having an opinion from some you trust helps to confirm that you are making the best decision for your individual situation.
Online calculators are great tools for calculating APPROXIMATE benefits. The results of these calculators should be confirmed by receiving something in writing as to how much you qualify for. The three factors that are used to calculate benefits are age, home value, and current interest rates. If any one of these three factors are not accurate, a false benefit can be given. Be cautious when using one of these calculators and make sure to contact the lender for written confirmation of exact benefits. Some calculators can give you numbers that appear higher than what you actually qualify for. Be cautious!
One practice that has raised particular concern is a tactic to advise reverse mortgage borrowers to bundle their loan with a second financial product, such as an annuity or insurance. Because of the high cost of reverse mortgages, using this product to purchase annuities or insurance is almost always financially unsound.
Despite the risks, reverse mortgages offer consumers an increasingly important option for accessing additional cash as they age. Sound information can inform borrowers whether a reverse mortgage is a suitable product for them.
Reverse Mortgages of Kansas
A division of Priority Mortgage
900 N. Tyler, Suite 12, Wichita, Kansas 67212
316.832.2221 (office) 316.721.7782 (fax) 316.655.5590 (mobile) 877.622.8200 (toll free)
info@reversemortgagesofks.com
Kansas Mortgage License # 1996-0122