Lower Reverse Mortgage Fees
June 22nd, 2007
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A lender serving the California and Hawaii markets says it now offers FHA reverse mortgages at lower cost.
California-based Reverse Mortgage Lending says ”the high efficiency and decreased costs of internet marketing have lowered the company’s costs,” allowing them to reduce up-front costs.
“Many people that could benefit from a reverse mortgage have been reluctant to go forward due to the high initial costs.” says company president Wally Welter. A big percentage of those costs, he says, are actually set by the FHA.
The decreased cost and efficiency of using the Internet has allowed his company to ”significantly lower our costs” according to Welter.
“This means we can offer what we believe to be the lowest cost FHA reverse mortgage in the State of California. The absolute most anyone will pay in origination fees for loans we originate via the internet is $2,995, and if the borrower is willing to complete the application process via the mail, we lower it to $2,495. This results in putting almost $5,000 of additional money in the pockets of our senior borrowers.”
The company is based in Santa Ana. The contact is Vince Welter at 949-660-9174.
Borrowers, of course, will want to look at all costs, rates and terms to see how they compare with other companies. That said, what is interesting here is the use of a set fee maximum regardless of the amount borrowed. Given that the paperwork to process a $100,000 loan is the same as a paperwork for a $350,000 loan, set fees make a lot of sense.
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