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If you are looking at using a reverse mortgage to pull out equity you have in your home but arent sure whom are the reverse mortgage lenders you should speak with, then you will want to read this. As with traditional loans, such as a 30 year fixed, reverse mortgages are available through many outlets. However, you should know the difference between them so that you dont pay more than you need to.

With everything that has happened with the economy and the tightening of credit, many companies that once offered a reverse mortgage are disappearing. Although, a reverse loan is a relatively safe investment for banks its the capital outlay and length of time for money to come back to the bank that makes it one of the first loan programs to be taken away when credit is limited. In fact, at this time there are zero banks offering their own reverse loan. Dont mistake this for banks not offering these loans, they just dont offer them as their own proprietary product.

Fortunately, the governments FHA program offers a reverse mortgage. This has allowed the major banks that are FHA approved to keep a reverse mortgage loan program while they have had to drop any proprietary reverse loan products they might have carried. The good news is you can go to any national bank and they should carry these loans. The advantage is you are going direct and this can provide you with less closing costs and credibility you might not find elsewhere.

The other alternative is to go through a mortgage broker. A mortgage broker works the same as an insurance broker. He or she has relationships with several companies and uses those relationships to find you the best deal for your needs. The upside is the broker might work with a bank that is running a special and get you the loan on better terms than going directly to the bank. One thing to note is mortgage brokers work with the wholesale division of a bank. This division is completely different from the retail division you would go to get your loan if you went directly to the bank. Why is this important? Well you might be able to get a better loan indirectly through the wholesale versus retail division.

However, typically mortgage brokers will charge more fees and closing costs. I recommend that you start with your bank to see if they offer the FHA reverse mortgage loan. Then from there speak with a national bank. Currently, Wells Fargo and Bank of America are two of the best for reverse mortgage loans. Finally, check with a local mortgage broker. Ask all of them to prepare a GFE, Good Faith Estimate, so that you may see the costs associated with the loan and approximate interest rate. Its also not a bad idea to inform each loan officer you speak with that you are comparing quotes with others.

Getting three quotes for a reverse mortgage can be time consuming but it can also save you thousands of dollars in closing costs and interest. You will have this loan for a long time, dont make short time out of your decision.

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• Reverse Mortgage Lender (mortgagenewsman.com)
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• What is a Reverse Mortgage Loan? (mortgagenewsman.com)