Reverse Mortgages have come a long way in just the last year or two. The low, fixed interest rate, FHA insured reverse mortgage came on to the scene last year and has taken the industry by storm. This is good news for everyone, including homeowners age 62 and older.

With a very healthy secondary market for these loans, lender premiums have increased to the point where it just made good sense to use these credits to pay borrower fees and closing costs. Fees and costs have long since been one of the major deterrents to the program for some and others just would not qualify for the loan without lenders picking up the tab for some of these fees.

The results have been phenomenal, with lenders now offering to pay fees and closing costs on these loans. Reverse Mortgages that have had fees up to and beyond $10,000 in the past can be had for half that amount or in some cases even less. This brings the closing costs of the FHA reverse mortgage program in line with closing costs on other types of loans like conventional refinances.  In some cases, this could make the FHA reverse mortgage program the least costly FHA mortgage program available today.

Michael Manfredi is a Reverse Mortgage Specialist

Reverse Mortgage Concepts

7310 N 16th Street #315

Phoenix, AZ 85020

(602) 456-0009