Reverse Mortgage Misunderstandings
We often speak with seniors who don’t understand the costs associated with a reverse mortgage and then when presented with the costs are surprised and prior to getting more information choose not to proceed.
I want to make a few comparisons on costs so that the pricing makes more sense. A “regular” mortgage typically has a cost of around 1-2 points in either origination fees or in the case of a “no cost” loan, the fees are basically priced back into the loan in exchange for a higher interest rate.
So, with a “traditional” or non-reverse mortgage, the fees are about the same as what a reverse mortgage costs. Instead of looking at a reverse mortgage from a dollar amount perspective, look at it as an opportunity cost of receiving a significant amount of money to be used to supplement your retirement.
If you’re concerned about the costs associated with a Utah reverse mortgage, you should discuss those costs and work with a loan officer that understands what it is you’re evaluating and can assist you with making a decision that is right for you.