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This rate option will give you access to more cash proceeds over the life of the loan than any other product option available. You will notice that there is a line of credit available after 12 months which will allow you to receive the most money possible in the first 12 months. If your number one goal with the Reverse Mortgage is to get your hands on as much money as possible this is the option for you.

If your priority is to preserve as much equity in your home while still leaving access to a line of credit to have in case of an emergency this is the product you would want to choose. If you review the amortization schedule for this product, you will see that over the years your outstanding loan balance with this selection will be lower than the other product options.

With this product option you will keep your closing costs as low as possible in order to establish your Reverse Mortgage. If you are most concerned with the costs to set up the loan and less concerned with the amount of proceeds you will receive, this is the product I would recommend for you.

As the name indicates this is a Fixed Rate loan option. Your rate would never be subject to change if you choose and close on this product option. This is the option you would select if your biggest priority was to secure a rate that would not be subject to change. Fixed Rate loans are a single disbursement lump sum so there is no option for a credit line. Depending on your individual circumstances, a Fixed Rate loan option may not provide you with as much available loan proceeds as one of the adjustable products so you will want to compare the amount of proceeds available when making your decision.

If your current home value is higher than $1.25 Million, this is a product you will want to look at in comparison to the Government product. The Government Insured Reverse Mortgage has a maximum value currently of $679,650. This means that any additional value above that figure is not factored into the loan amount calculation. Having a value higher than $679,650 does not prohibit you from still considering the Government Product, but at higher home values, this product may provide you with significantly more funds available than the Government Product can. There is no Mortgage Insurance Premium on this product so the closing costs are usually lower for this product in most cases. This is a Fixed Rate product so the proceeds are given as a lump sum only in lieu of the option for a credit line. If you have a larger existing mortgage or are looking to receive additional proceeds above what the Government product can provide, this is the best option to accomplish that goal.

2018’s Best Reverse Mortgage Lenders | Compare Limits, Rates & Fees

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Great! It looks like your home value estimate is about $~hvalue~. If you feel this estimate is not correct you can manually change it below. If you have an existing mortgage balance I'll need to know the amount we are going to pay off to get rid of that mortgage payment!

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About Line of Credit

Your Reverse Mortgage Line of Credit is subject to the Line of Credit Growth calculation. The Line of Credit Growth Rate is the combination of your Initial Loan Rate and the Mortgage Insurance Renewal Rate. The Line of Credit Growth Calculation is based on how much money is available in your Line of Credit that has not yet been advanced. If you advance 100% of the funds in your Line of Credit, there would be no further growth as there would be no remaining funds available in your Line of Credit. Your Line of Credit Growth Rate is variable because the Initial Loan Rate is a variable that is subject to change once per year on an Annual Adjustable Loan.

About Cash at Closing

HUD guidelines limit the amount of money that you are allowed to receive at time of closing and during the first 12 months after the loan has been closed. This dollar amount is how much money would become available to you from the Line of Credit once you reach 12 months from the day your loan closes based on the estimated figures you have provided for this calculator.

About Loan Balance

Your Reverse Mortgage Loan Balance will increase over time as you are not required to make any monthly mortgage payments with a Reverse Mortgage loan. The Interest and Mortgage Insurance Renewal will accumulate based on the outstanding Loan Balance. You can make payments on the Reverse Mortgage to prevent this balance from increasing if you want to, but it is not required. The Reverse Mortgage loan is a Non-Recourse loan which means you cannot owe more than the value of your home.

About Property Value

This calculation is based on the standard HUD disclosure of 4% per year expected property value appreciation. This is not a guarantee of what your home value will be in the future and is just for illustration purposes only. Your Property Value will adjust up or down as the local real estate market conditions dictate.

About Home Equity

Home Equity is the difference of your Property Value minus your Loan Balance. This is also a calculation for illustration purposes only and not a guarantee of what your home equity will be in the future. Your Home Equity will vary depending on how much your Loan Balance becomes compared to what your Property Value is at any given time in the future.

About Existing Mortgage

If your home currently has a mortgage, please specify the full amount balance in the existing mortgage field.

Doc Preparation

This is a 3rd party service selected by the Lender that is responsible for preparing the final closing documents which include the note, deed of trust, agreement, etc. They are responsible for making sure that the documents are in compliance with local and federal guidelines.

Flood Certification

This is a 3rd party service that is responsible for ascertaining whether or not a property is located in a Flood Zone as determined by FEMA and provides a Life of Loan determination/guarantee

Mortgage Insurance Premium or MIP

This is the fee that is paid directly to HUD at closing of the loan to insure the individual loan under the HECM program.

Settlement or Closing Fee

This is a 3rd party service that is responsible for handling the settlement or closing of the loan. They work with the title company to get the public records information, they work with existing lenders to obtain payoffs, coordinate with the lenders for funding and the counties for recording of the loan.

Counseling Fee

This is a 3rd party service that is providing the counseling session to each Reverse Mortgage applicant in the beginning stage of the process. This is a HUD requirement in order to start the Reverse Mortgage process. The counselors are tasked with educating the borrowers about Reverse Mortgages as well as determining if there are any other types of financing they may qualify for.

Appraisal Fee

This is a 3rd party service again as well. The appraisal fee goes to an Appraisal Management Company or AMC. Their responsibility is to assign the appraisal order to a local FHA approved appraiser in the same market area as the property of the Reverse Mortgage borrower and to be the go-between for the Lender and the appraiser to maintain appraiser independence. They also are required to review all appraisals for errors or omissions prior to delivering the report to the Lender.

Credit Report

This is another 3rd party service. The credit company is required to provide a full credit report from all 3 bureaus (Experian, Transunion & Equifax) for each Reverse Mortgage applicant to determine the borrower’s credit scores, credit history and any delinquencies or public record items. This is a necessary step in the process as a Lender must review a borrower’s credit history for specific items to determine eligibility into the program.

Lender’s Title Insurance

This is a 3rd party service that is required for any type of loan that is done and is not specific to Reverse Mortgages. For every loan done, a title report must be obtained from a Title Company and the company has to insure the Lender in the transaction for the required dollar amount based on appraised value, etc. The fee for title insurance usually varies by loan type and from state to state.

Endorsements

Lenders require various different types of endorsements to the title policy based on the type of loan being given. For a Reverse Mortgage, some endorsements that are required are the Neg-Am and Environmental and in order to provide these endorsements to the policy, there are usually additional charges. Other such endorsements that are required can vary based on property type (ex. Condo, PUD, Manufactured Home). The charges for these endorsements will vary from state to state.

Recording Charges Mortgage

Whenever a new loan is completed, the Security Instruments (Deeds of Trust or Mortgage – verbiage varies from state to state) must be recorded with the county recorder’s office to finalize the transaction. There is always a charge to record documents and that is why there is a Recording fee for all loans. Recording charges can vary from County to County and State to State as well.

Notary

All final loan documents must be executed in front of a notary as there are documents that require notarization such as the deed of trust. This is a 3rd party service and is based on the amount that the signing service will charge to handle the signing and notarization of all necessary documents.

Initial Draw From You Credit Line

The quote and pricing terms on this page are based on a max initial lump sum. If you would like to receive a lesser amount at closing than is shown, please enter that amount in the box below and click on calculate

July 27, 2018 By Michael G. Branson 10 comments

reverse mortgage lenders diagram

2018's Top Reverse Mortgage Lender Reviews

Lender Name	Company Start Date	Lender Rating	Review Stars (0-5.0)	% of Positive Reviews	# of Complaints Last 3 Yrs.	Source
All Reverse Mortgage, Inc.	05/27/2004	A+	5.0	100%	2	Review Source
American Advisors Group (AAG)	10/29/2004	A-	4.3	84%	41	Review Source
Reverse Mortgage Funding LLC	09/25/2012	A+	4.6	75%	2	Review Source
Live Well Financial, Inc.	08/28/2008	A+	4.0	17%	9	Review Source
One Reverse Mortgage, LLC	07/12/2001	A+	4.4	60%	5	Review Source
Liberty Home Equity Solutions, Inc.	09/05/2003	A+	4.2	40%	5	Review Source
HighTechLending Inc	06/06/2006	C+	2.3	0%	2	Review Source
Reverse Mortgage Solutions, Inc.	02/21/2007	F	1.05	1%	86	Review Source
Synergy One Lending, Inc. (Retirement Funding Solutions)	01/09/2013	A+	N/A	N/A	1	Review Source
Finance of America Reverse LLC	10/15/2003	A+	N/A	N/A	3	Review Source

*Source: reverse mortgage lender ratings by BBB (07/29/2018).

I am looking for the best reverse mortgage lender. I have felt I was being cheated in the pass from a lender, so I decided against it, because of high fees, Interest rate, insurance premium, and closing fees. Also I understand there will be, once again changes in the Reverse Mortgage. Some are saying it may close down permanently, is this true? Also, HUD & FHA are now investigating 3 of the top lenders dealing with mortgages. Will that interfere with the Reverse Mortgage changes already set? What is the interest rate that is sat at this time? I think the Reverse Mortgage Saver is a great Idea. It does help bring down the cost and fees that is being charged from some reverse mortgage lenders. I think the reverse mortgage is a great Idea for Senior Citizens; it should be fair to all. Thank you, – Carolyn

Hi Carolyn,

You have brought up a number of issues so forgive me if this response is a bit lengthy. Firstly let’s deal with the interest rates. 2018 Rates are on the rise for many of the products right now, especially the fixed rates loans. However, rates are a function of the secondary market. In other words, they will go up and down depending on how much they fluctuate on the securities that are selling which are backed by the reverse mortgages.

If you compare the fixed rate mortgages at this time, you will find that there are many options available at LESS THAN 4.5% at NO ORIGINATION FEE, and rates going down to as low as 3.99% (5.89%APR) with an origination fee.

It’s amazing to me but we’ve actually had homeowners calling in lately after receiving quotes as much at three quarters of a percent higher in rate and some with origination fee above what we can do for them and then they tell me that the other lender told them that either we were going to “make it up in other fees” or other cautionary comments meant to scare the borrowers into staying with them at a higher rate.

Lending laws do not allow originators to pad any closing costs. Appraisals, title fees, credit, etc., all can be charged at only what those companies charge. Originators cannot by law add anything to those fees. Many borrowers look only at the fees on an adjustable rate loan. You must also look at the margin if you are looking at an adjustable rate loan as a higher margin can cost you thousands and tens of thousands of dollars in interest over the life of the loan, just as a higher interest rate can on a fixed rate loan.

Since the UFMIP is based on 2.0% of the appraised value of the home to a current maximum of $679,650, the UFMIP can go as high as $13,593.00. With an increased interest rate option we can absorb this upfront insurance saving you thousands.

Finally, if the lender belongs to the National Reverse Mortgage Lenders Association (NRMLA), and/or the National Association of Mortgage Brokers, (NAMB) they must adhere to extremely high ethical standards (we are members of both). Our company is also listed as A+ with the Better Business Bureau. If you want to see what our customers are saying about us, please take a look at the comment cards we have posted.

Were we able to help every borrower? No, but then again, no lender is since the HUD reverse mortgage program was not meant to cover all situations and all properties. Values have dropped over the past several years and appraisals have been tough, but all lenders are fighting with these issues. We believe that Senior Borrowers should be given all the facts and then be allowed to make the decision that is in their best interest.

For that reason, we don’t use an Appraisal Management Company (AMC) that is owned in whole or part by just one lender so that borrowers are trapped if another lender can give the borrowers a better deal. This creates a conflict that prevents borrowers from being able to transfer the appraisal and some banks routinely followed this procedure, locking borrowers into loans they later cannot change. It’s a loophole in HUD’s intentions but there is currently no way to get the AMC to cooperate as they say they cannot work with anyone but the lender who placed the order (who, conveniently enough, owns them).

If you do your homework and get solid quotes before you begin and then verify the credentials of the originator and the company, you should be able to avoid that feeling of being cheated when you know you’re getting the best possible deal from the beginning.

Still looking for the Best Reverse Mortgage Lender?

All Reverse Mortgage© maintains the highest BBB rating & reviews of any major reverse mortgage lender. Get Up to $25,000+ more in available proceeds with our all-new 2018 programs! Call us at (800) 565-1722 or Request Your Quote

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About the Author
Michael G. Branson

Michael G. Branson (CEO All Reverse Mortgage Inc. and moderator of ARLO™) has 40 years of experience in the mortgage banking industry and has devoted the past 14 years to reverse mortgages exclusively. Michael G. Branson was part of the team that introduced the first fixed-rate jumbo reverse mortgage to market, which was sold to a private investor in 2007. Mike can be reached at

Post Tags: best reverse mortgage, Lenders

10 Comments on “2018’s Best Reverse Mortgage Lenders | Compare Limits, Rates & Fees”

I'm ARLO™ and I love responding to your questions and comments. Let's talk!

ARLO™March 9, 2018

Cecilia G PitcockMarch 9, 2018

I currently have a reverse mortgage. That was established in 2009. My property has increased in value. At the time of mortgage my property was valued at $70 K. Now its approximately $126 K. Is it possible to get more equity now?

Reply
- ARLO™March 9, 2018
  
  All Reverse MortgageMarch 9, 2018
  
  Hello Cecilia,
  
  HUD has rules you have to meet but yes, you absolutely can refinance a reverse mortgage if it makes sense. The only way to tell for sure is to run the numbers now to see if you will meet their requirements. You can do that quickly and easily at our no cost, no obligation All Reverse Loan Optimizer (ARLO). ARLO can tell you quickly and accurately, in real time, if the refinance will work for you. You can access ARLO by clicking here.
  
  Reply
ARLO™March 28, 2013

Alison LoyMarch 28, 2013

My mom would like to move.
Is it possible to apply for a reverse mortgage directly on the new house so she doesn't have to close with an initial mortgage, then turn around and pay fees again to set up the permanent reverse mortgage?

Reply
- ARLO™March 29, 2013
  
  Mike BransonMarch 29, 2013
  
  Hi Alison,
  
  Absolutely! HUD announced the HECM for purchase program (often pronounced "Heck-um", and is HUD's acronym for Home Equity Conversion Mortgage) in 2008 and actually rolled the program out to the public in 2009. Since then, we have closed many purchase HECM's for borrowers all over the United States and at this time, Texas is the only state that the state laws prohibit this transaction (but even they are moving a Bill through their legislature to allow the HECM for Purchase product).
  
  Our calculator on our website at https://reverse.mortgage/calculator also gives you the option to select "purchase" and your mom can run various scenarios to see how much home she can comfortably purchase based on her benefits under the program. If you have any questions on the program itself, please feel free to contact us.
  
  Reply
ARLO™January 9, 2013

Paul MitchellJanuary 9, 2013

I have lived in my house for 15 years. My elderly mother owns the house. She wants to sign the house over to me. There is no mortgage on the house. Is there a waiting period I must wait before I can apply for a reverse mortgage or I can I apply immediately? I have paid all utilities, insurance and real estate taxes on the house.

Reply
- ARLO™January 14, 2013
  
  Mike BransonJanuary 14, 2013
  
  Hi Paul,
  
  Most companies do have a 90 day period that you must be on title before application. This is not a HUD requirement, but due to the fact that too many instances arose where family members deeded a property over to another family member just to avert reverse mortgage requirements, most lenders did implement the 90 day period whereby the lender could verify the occupancy and intent of the borrowers.
  
  Reply
ARLO™December 8, 2012

WilliamDecember 8, 2012

Which companies would you recommend in the San Francisco-Berkeley area for a reverse mortgage?

I am turning 62 in January 2012 and am doing my research a couple of months ahead of the actual time when I am qualified to apply.

Thank you â€“ William L, Esq.

Reply
- ARLO™December 8, 2012
  
  Mike BransonDecember 8, 2012
  
  Hi William,
  
  I would recommend our company, All Reverse Mortgage Company. We originate and fund loans in 15 states and the US Virgin Islands. We make the process extremely easy for borrowers no matter where you are. If you have not already done so, the first step is the HUD mandated counseling and you can choose one of the counselors from the list we include with our proposal, or any HUD approved counselor. The counseling can be done via telephone and all the numbers are toll-free so it really doesn't matter what counselor you choose anywhere in the United States unless you choose to go and do the counseling in person (face-to-face). Then you would choose a counselor that is located close to your area.
  
  It will take a call of about 5 - 7 minutes for us to gather the information necessary to complete your application, then we will send it to you via over-night delivery, with an envelope to return it the same way. Once we receive your signed loan application and counseling certificate (that is what the counselor will give you after you have completed your call or visit), we can usually have the loan completed within 30 days assuming there are no unusual delays in the appraisal process, issues regarding the property itself or other liens, etc. we need to resolve. In your case, we do need to wait for your 62nd birthday to begin the application process though so the timeframe could not start until then.
  
  During the following 3 weeks after we receive your signed package back in the overnight delivery, we will order the appraisal, get the title work completed, take care of all lender requirements and have the loan approved. The appraiser will contact you to make an appointment, the sooner you make yourself available to him/her, the quicker the process can take place. There is never a need to hurry, just note that if you cannot meet with the appraiser for several weeks, this will delay the time period quoted above. After we get everything done and the underwriter approves the loan, we are ready to order your loan documents when you are ready to close your loan.
  
  When you are ready to close the loan, we will send a notary with the final loan documents directly to your home. It's nice to know you will be able to sign in the comfort of your home, at your pace. Then the laws require that you have a 3-day right of rescission on all refinance transactions which allows you one final opportunity to cancel should you decide you want to change your mind. The 3 day right to rescind does not include the day you sign, Sundays or holidays so it actually runs 4 days (or more if it extends over a weekend or holiday). At that point, if you have not cancelled your loan, your loan will fund and any proceeds you have coming to you at closing will be either electronically transmitted to the account you previously designated or sent to you by check, whichever you prefer (we highly recommend the wire transfer as there is no delay in receipt of funds and never a hold placed on the funds by your bank since it is the same as a cash deposit).
  
  We do not pressure borrowers and encourage you to check out our rates and fees with anyone. Please let us know if we can assist you with your reverse mortgage request. Call us Toll Free at (800) 565-1722 or request a free analysis here
  
  Reply
ARLO™May 31, 2011

Mr FrankloMay 31, 2011

Congratulations on the strength of your article. Can you answer this difficult question. After the Lender (Bank) and the Senior Citizen (Client) have signed off on the contract and first checks have been sent and received, can the Lender (Bank) lower the payments to the Senior Citizen (Client) without the Clients approval. If so what would be the reasons that the lender can lower the payments and under what provision in HUD or otherwise can this take place? Respectfully -Frank

Reply
- ARLO™June 1, 2011
  
  adminJune 1, 2011
  
  Hi Frank,
  This is what we have been touting as one of the benefits of a reverse mortgage, that unlike a traditional Home Equity Line of Credit (HELOC) that you might get from your local bank, the lender can never decide to arbitrarily close the line or alter the terms. The loan is insured by the Federal Housing Administration, a division of HUD, so that the lenders are not at risk and can continue to keep the loan active at the existing terms for the life of the borrower(s).
  You have to realize that just like other mortgages, there are conditions that you must meet on a reverse mortgage to stay in good standing on a reverse mortgage and to continue to receive your reverse mortgage funds. Those are spelled out in the mortgage documents. You must continue to occupy the property as your primary residence; you must maintain the property in a reasonable fashion and you must keep the taxes and hazard insurance current. If you live in a project that has an association, then those dues must also be kept current. If you fail to do these things, then the lender can ultimately call the Note due and payable but could also cease additional draws on the lines until the defaults were cured. The lender will not ever alter the terms on your reverse mortgage after closing and your obligations under the mortgage are also a portion of those terms.
  
  Reply

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