Reverse Mortgages Get Cheaper

I am not a big fan of reverse mortgage unless the homeowner needs the money.  Genworth has gotten rid of their monthly servicing charge which can save the borrowers thousands of dollars.  Make sure you consult an honest and knowledgeable Mortgage Professional. 

“Genworth Financial Inc., Bank of America Corp., Wells Fargo & Co., OneWest Bank’s Financial Freedom unit and other lenders also have dropped or reduced their origination or servicing fees, or both.

Why are lenders cutting costs now? To drum up business. From Oct. 1, 2009, to March 31, 2010, home-equity-conversion mortgage volume fell 22% from the same period a year earlier. One reason: In response to falling home values, the Department of Housing and Urban Development last October cut the amount of equity that reverse-mortgage borrowers could extract by 10%.”

http://online.wsj.com/article/SB20001424052702304628704575186211956006190.html?mod=djemITP_h