A reverse mortgage refers to a loan that enables you to get money from your home equity without selling the house. Reverse mortgages are becoming more popular amongst older homeowners as a way to remain in their homes and meet all of their expenses comfortably. Like any other type of mortgage, homeowners need to find a lender to make everything come together. The two main avenues people take to get a reverse mortgage are a mortgage lender such as the bank and a mortgage broker.
Here, we will discuss how to choose a reverse mortgage broker so you can get the best possible deal.
Difference Between Mortgage Lender and Mortgage Broker
Any proper reverse mortgage comparison must differentiate between mortgage lenders and brokers. A lender refers to a financial institution that makes a loan directly to you. This means you owe the lender the amount of the loan plus interest according to the loan agreement. A mortgage broker is someone who works with you to find a lender that will be the best fit for your situation.
Why Use a Mortgage Broker Instead of a Bank (Mortgage Lender)?
There are a lot of people who feel that finding banks that do reverse mortgages is safer because of the perceived stability of a big bank. However, there are many differences between a mortgage lender and a mortgage broker that demonstrate that using a broker is usually the best option. Here are some reasons why you should consider a mortgage broker instead of a bank:
A Mortgage Broker Works for You
The main difference between a mortgage broker and a mortgage lender is that the broker works for you and the lender works for itself. As the name suggests, a broker goes out into the world with the thought of ‘brokering’ the best possible deal for you. This ensures you get the right value to meet your needs instead of what is best for the bank.
Access to a Wide Range of Lenders
When you work with a reverse mortgage broker, you’ll have access to various lenders and lending products. Working with a bank means they have to use their own products and are limited to only those products. On the other hand, a mortgage broker may have relationships with multiple lenders, dramatically increasing your chances of getting a better deal.
Getting to Work with a Specialist
It’s important to note that a reverse mortgage differs from a regular mortgage in a handful of important ways, and working with a reverse mortgage broker means you get to work with an expert on the topic. Unfortunately, most banks don’t offer reverse mortgages, so even if you find one that will work with you, they may not have the expertise of a reverse mortgage broker.
Contact our experts to learn more about reverse mortgages and if it is the right fit for you!
Working with Reverse Mortgage 4U
At Reverse Mortgage 4U, we offer free assessments and personalized services to help you find the loan that works best for you (reverse mortgage or otherwise). We believe in this product, and our experience and dedication will always get you the results you need.
If you’d like to learn more about reverse mortgages and how we can help you find the best possible lender for your needs, get in touch with our team at Reverse Mortgage 4U today.