Reverse Mortgage Funding Review
Most Consumer-Friendly Reverse Mortgage Lender
As a member of the National Reverse Mortgage Lenders Association, Reverse Mortgage Funding stands out as one of the options that place heavy emphasis on the consumer experience for seniors looking for a reverse mortgage. Reverse Mortgage Funding’s fees and closing costs are competitive against the industry standard. The company also guarantees reverse mortgages will be serviced in-house for the life of the loan and offers reverse mortgages to seniors as young as 60 years old. A comprehensive and informative website offers additional assistance, focusing on transparency and providing in-depth reverse mortgage articles to ensure seniors are making an informed decision when choosing their reverse mortgage lender.
Pros:
- Veteran discount program gives U.S. military veterans and their spouses a credit of up to $450 toward appraisal costs on their reverse mortgage
- Customer for Life Commitment ensures service throughout the life of your loan, including refinancing at a later date.
- Price match program guarantees that RMF will match or beat a competitor’s pricing, or they will give you a $1,000 gift card.
- The minimum age to be eligible for Equity Elite, RMF’s proprietary reverse mortgage loan, is only 55 years old.
Cons:
- Equity Elite loans are only available in 24 states
Overview of Reverse Mortgage Funding
Reverse Mortgage Funding is considered one of the top reverse mortgage lenders in the country, providing direct lending services that ensure loans remain in-house for their duration. The lender is known for exceptional customer service and quick response time to seniors’ questions and concerns. As an additional bonus, Reverse Mortgage Funding offers a price match program to ensure seniors are getting the best deal on their reverse mortgage.
What Fees Does Reverse Mortgage Funding Charge?
Although the fees and closing costs are not explicitly offered without going through the process of checking eligibility, Reverse Mortgage Lender offers a price match program that promises to beat or match the prices of competitors. If the company is unable to meet this goal, it offers a $1,000 gift card once the loan is closed with the competing lender.
Like a traditional mortgage, the cost of a reverse mortgage can vary greatly based on several factors. Contributing elements include the amount of equity in your home, the interest rate, the product you choose and smaller fees, such as appraisal and recording fees. Loan origination fees are capped by the FHA at 2% for the first $125,000 and 1% for any amount beyond.
Full Review of Reverse Mortgage Fundings’ Features
Reverse Mortgage Lender offers several lending products to meet the varying needs of their senior clients. In addition, the company has a few general features that help it stand out against its competitors.
General Features
Regardless of the product you choose, every Reverse Mortgage Lender client is eligible for the price match guarantee, providing assurance you’re getting the best deal on your reverse mortgage. Seniors who feel more comfortable discussing and signing off on financial decisions in person can request a locally licensed loan specialist to visit them in their homes to go over their options. The company is also a direct lender and guarantees that any loans funded by Reverse Mortgage Lender will never be sold, eliminating the need to establish relationships with new lending companies and sometimes allowing customers to work with the same agent for all future interactions.
Equity Elite® Reverse Mortgage
The Equity Elite® option is a kind of hybrid between the reverse mortgage and a conventional home equity loan. Available to homeowners as young as 55 in some states, Equity Elite® was created to help seniors resolve debt and take control of their retirement finances. Borrowers can choose between receiving a lump sum, term payments, or a growing line of credit. Some seniors may even be eligible for a lender credit to apply towards their closing costs. Unlike the limitations of a traditional Home Equity Conversion Mortgage (HECM), Equity Elite® offers the potential for lower initial costs, a higher borrowing limit, and qualifiers that increase eligibility for those who own or are purchasing a condo.
HECM Annual Adjustable Rate
This Home Equity Conversion Mortgage comes with an adjustable rate that can only be changed once a year. The loan comes with an overall lifetime cap that limits how much the rate can increase above the initial rate over the life of the loan. In addition, the loan comes with an interval cap that limits how much the rate can increase during the annual adjustment. Seniors can choose to take their equity out in any combination of a lump sum, monthly payments, or a line of credit. With any of these options, interest is only accrued on the money that has been disbursed.
HECM Monthly Adjustable Rate
The HECM Monthly Adjustable Rate reverse mortgage is similar to the annual version except rate changes can happen monthly. This option also comes with a lifetime rate cap that is determined by the terms of the loan options you select. The same disbursement options are offered as well as the flexibility to choose one or a combination of payout methods.
HECM Fixed Rate
Choosing a HECM Fixed Rate reverse mortgage can help seniors plan for their future by providing an interest rate that does not change. This established rate allows the borrower to always know the amount of interest accruing on the loan and how that relates to their estate finances. Those who opt for the fixed-rate are limited to a lump-sum payout which makes this a great option for those who are consolidating debt or as a refinance alternative to help pay off an existing mortgage.
Reverse Mortgage for Purchase
The HECM for purchase is designed to allow seniors at least 62 years old to purchase a home that fits their current and future needs. Borrowers who are able to contribute a large down payment, generally ranging from 45-55% of the purchase price, can use proceeds from a HECM on the new home to fund the rest. This works similar to a traditional mortgage except the loan is treated as any reverse mortgage with no payments required until a maturity event triggers payment of the loan in full. This option is often selected when seniors are selling a former home as it frees up much of their cash upfront without adding mortgage payments to their monthly expenses.
Who Should Consider Reverse Mortgage Fundings’ Reverse Mortgages?
Budget-conscious Seniors
A variety of reverse mortgage options coupled with the unique price match program make Reverse Mortgage Lender a strong choice for seniors who are interested in the benefits of a reverse mortgage without breaking the bank. As a direct lender, the company cuts out the middleman and passes those savings on to its customers.
Seniors Who Want Familiarity
Reverse Mortgage Lender has established a Customer for Life Commitment. This commitment ensures agents take the time to develop relationships with the seniors who seek help with a reverse mortgage, working closely with them throughout the loan process and being available for future inquiries or additional servicing.
Seniors Who Need Clarity
Every step of the reverse mortgage is explained carefully to clients, making Reverse Mortgage Lender an excellent option for those who need extra assistance in understanding the process. If explanations over the phone are inadequate, local licensed specialists are available to assist in person.
What Are People Saying About Reverse Mortgage Fundings’ Reverse Mortgages?
Consumers reviewing Reverse Mortgage Funding on LendingTree give the company an average of 4.8 out of 5 stars. Many reviewers mention the company’s excellent customer service and responsiveness when issues arise. There were a few minor complaints about experiencing a slower than expected closing process and one reviewer stated a communication issue between Reverse Mortgage Funding and a third-party contractor. However, it was disclosed that Reverse Mortgage Lender agents went the extra mile to resolve the issue and the company responded to the review with an additional apology. In general, most reviewers highlighted the transparency in their experience and the patience with which every step of the process was explained to them. There were also several comments from those who compared several lenders, claiming Reverse Mortgage Lender was often the most economical choice.
FAQs
Will a Reverse Mortgage Affect My Pension?
In some circumstances, a reverse mortgage can affect eligibility for pensions and needs-based government programs, such as Medicaid. Click here for our full answer to this question.
Do You Still Own Your Home With a Reverse Mortgage?
Just like a traditional mortgage, borrowers still own their home until a maturity event occurs or until they are unable to keep their property taxes, insurance, or HOA fees current. Click here for our full answer to this question.
What Are the Reverse Mortgage Age Limits for 2023?
The general age limit for a reverse mortgage is 62 years old with limits as low as 55 in some states. Click here for our full answer to this question.
What Happens With a Reverse Mortgage if the Owner of the Home Dies?
This is considered a maturity event and results in the full amount of the loan becoming due. Click here for our full answer to this question.
Are There Alternatives to Reverse Mortgages?
There are a few alternatives to opening a reverse mortgage, such as selling your home, taking out a home equity line of credit, and refinancing. Click here for our full answer to this question.