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Published on: 5/24/2002
Last Visited: 2/2/2003
A review of a potential borrower's situation can quickly reveal whether a reverse mortgage is suitable, says Cindy Merrifield, state manager for Reverse Mortgages of Florida, a branch of Seattle Mortgage Co.
"Borrowers either need or want them, or they don't.And if they're getting a pushy sales pitch, it's not a good thing," warns Merrifield.
Only a small proportion of banks make reverse mortgages.References are available from a trade group, the National Reverse Mortgage Lenders Association, at www.reversemortgage.org. online calculator to estimate finances.
Borrowers should know that closing costs on reverse mortgages are much higher than on regular mortgages, and closing costs are wrapped into financing.
"It's not cheap to get a reverse mortgage, it's just that the benefits outweigh the costs," says Merrifield.