You’ve seen the commercials. A familiar face tells you a reverse mortgage is simple, safe, and easy. You call the number on the screen. And somewhere in the process, you realize the costs are significantly higher than you expected.
Choosing a reverse mortgage lender is one of the most consequential financial decisions a senior can make — and the lender you choose has a direct impact on how much money you receive and how much of your equity you keep.
Here’s what most people don’t know: a large, nationally advertised reverse mortgage lender and a small independent broker are offering the same underlying loan products. The difference is in the markup.
Large reverse mortgage companies spend heavily on television advertising, celebrity spokespeople, and national call centers. Those costs are real — and they get recovered through your loan.
Origination fees, interest rate markups, and closing cost structures at large lenders are consistently higher than those available through a smaller, independent broker. We regularly see borrowers who have been quoted by a large lender and received a quote from us — the difference is frequently 20 to 50 percent.
That gap isn’t a discount we’re offering. It’s simply that our overhead is lower, we have no advertising costs to recover, and we pass those savings directly to you.
A mortgage broker is not a lender. We work on your behalf across multiple lenders — including all major banks and institutions that offer HECM and proprietary reverse mortgages — to find the best rate, lowest fees, and most favorable structure for your specific situation.
Think of it like the difference between walking into one car dealership and working with someone who can negotiate across every dealership in the region at once. You get the benefit of competition without having to make call after call.
At Palm Desert Reverse Mortgage and Long Beach Reverse Mortgage, that’s exactly what we do. One conversation with us accesses the full market.
What is the total origination fee? HECM origination fees are capped by HUD, but proprietary loans are not. Know what you’re being charged.
What is the initial interest rate, and is it fixed or adjustable? Most HECM loans are adjustable-rate. Understand how rate changes could affect your loan balance over time.
Are there lender credits available to offset closing costs? A good broker will negotiate these on your behalf.
What is your experience with reverse mortgages specifically? Reverse mortgages are a specialized product. You want someone who has closed hundreds of them — not someone who handles them occasionally.
Will you personally be working my loan, or will I be handed to a processor? At Palm Desert Reverse Mortgage and Long Beach Reverse Mortgage, the CEO works your file directly. There is no hand-off.
Pressure to decide quickly. A legitimate reverse mortgage professional will never rush you. The process includes mandatory HUD counseling and a three-day right of rescission specifically to protect you.
Vague or hard-to-find fee disclosures. Good lenders are transparent about every line item. If costs are being minimized or buried, that’s a concern.
No discussion of alternatives. A good advisor will tell you if a reverse mortgage isn’t the right tool for your situation. If the answer to every question is ‘get a reverse mortgage,’ find someone else.
Encouragement to use proceeds for investments. This is explicitly against HUD guidelines for a reason. Any lender suggesting this should be avoided.
Are all reverse mortgage rates the same? No. While HECM origination fees are capped, interest rates, closing cost structures, and available lender credits vary significantly.
How do reverse mortgage brokers get paid? Brokers receive compensation from the lender upon loan closing — similar to a traditional mortgage. This compensation is disclosed on your Loan Estimate.
Is it better to go directly to a bank or use a broker? A broker has access to multiple lenders and can often secure better terms than going to a single institution directly.
How do I know if a lender is legitimate? Verify that they are licensed in California through the NMLS (Nationwide Mortgage Licensing System) database. A license number should be displayed on all marketing materials.
📞 Ready to Talk? Before you call a number from a TV commercial, call us. Palm Desert Reverse Mortgage and Long Beach Reverse Mortgage give you access to all major lenders — and our clients routinely save thousands compared to what big lenders quote. Call today for your free comparison. |
Brand: Palm Desert Reverse Mortgage | Long Beach Reverse Mortgage | HECM & Proprietary Specialists | California Licensed Mortgage Broker |
