Reverse Mortgage Whats Better a Bank or Broker
Reverse Mortgage California
California -- November 15, 2009 --
Reverse Mortgage: What's better, a Bank or Broker
You may be trying to decide which reverse mortgage lender to go with. You may have heard the term mortgage broker, and thought "why would I do business with a mortgage broker rather than a bank and vice versa?".
Let me explain the differences for a reverse mortgage.Reverse Mortgage California,Reverse Mortgage Arizona
Bank:
- Funds their own loans
- May sell your loan to some other company down the road
- Typically has one source of funds from which to choose - themselves
- For a $400,000 home, will charge roughly $16,500 in closing costs [100 words] /> - For a $200,000 home, will charge roughly $11,000 in closing costs
- For a $100,000 home, will charge roughly $6,700 in closing costs
- Origination of loan typically occurs in State.
- Processing is typically out of state and you may be dealing with a team of people.
- Banks have many areas of business. Reverse mortgages are just one area and the person you deal with may not specialize in reverse mortgages.
Mortgage Broker:
- Works with multiple lenders choosing the company with the best product and rate for the client.
- The chosen lender funds the loan.
- The chosen company may sell your loan to some other company down the road
- For a $400,000 home, will charge roughly $16,500 in closing costs
- For a $200,000 home, will charge roughly $11,000 in closing costs
- For a $100,000 home, will charge roughly $6,700 in closing costs
- Origination of loan typically occurs in State.
- Processing is typically in state with one point of contact for all processing needs.
Reverse mortgage broker may be a specialist. Has extreme knowledge of reverse mortgages.
Reverse Mortgage California,Reverse Mortgage Arizona
You'll notice costs* don't differ between going direct to a bank or working through
a mortgage broker for your reverse mortgage. By working with a broker, however, you may be dealing with a more knowledgeable specialist, who has access multiple companies, one of which may be better than others for your particular reverse mortgage needs.
I WILL EVEN GO ONE BETTER BY REDUCING YOUR *ORIGINATION FEE
People sometimes ask me will I be safer with bank than with a mortgage broker. The reality is your loan ends up with a bank when you deal with a mortgage broker. Example Mortgage Broker brokers the loan to Met Life.Its acually cheaper for banks to deal with Broker .The Banks don`t pay employee benifits to broker etc. So, there is no difference from a safety point of view. Additionally, 100% of these loans, regardless of which company funds them, are insured by FHA.
If you have questions on this please give me a call we are licenced in California and Arizona and beware of Reverse Mortgage loan officers who cross sell insurance products.
Homerun Financial
Thomas Mastromatto
PHONE 888-769-7023 FAX 888-873-8338
Keyword Tags:
Reverse Mortgage, Reverse Mortgage California, Reverse Mortgage Arizona
