Reverse Mortgage Guide

According to Real Estate Undressed, there’s been a shortage of factual information regarding reverse mortgages.

Blogger Larry Cragun says that “almost everything I have posted about reverse mortgages has led me to believe that for many situations it is a great product. However, I have recently realized the one negative that I have never seen written. The fact this negative is omitted leads me to believe that most of the information that is provided you comes from those either outside the mortgage industry or from those promoting the product.

“That negative is that the costs are higher than a normal mortgage. After all a reverse mortgage is a negative amortization mortgage that draws on your equity to pay you.”

Actually, though, this space addresses both the pros and cons of reverse mortgages. We have certainly discussed negative amortization at length (see: Reverse Mortgage Lenders Avoid Risk — For The Moment.

As to reverse mortgage origination fees, we have posted a lengthy discussion regarding such fees and how they differ from typical origination charges. See: Reverse Mortgage Origination Fees & “Suitability”.

We think there’s plenty of room online for an independent discussion of reverse mortgages. We know this can be surprising — but a growing number of visitors and subscribers think it’s a great idea.

The full posting from Real Estate Undressed is at: A Short Post On Reverse Mortgages.

This entry was posted on Tuesday, November 27th, 2007 at 4:59 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.