Online real estate hub Zillow has been appearing in headlines increasingly since the company went public in 2011. While it now offers real estate listings, rental estimates and a host of other products, it also manages a blog where it covers real estate topics, including reverse mortgages.
Last week, Zillow took a look into the loans and how they work. While the article aims to give a brief synopsis of the different options, such as fixed versus adjustable, Home Equity Conversion Mortgages and proprietary options, it lacks in a few areas of research.
First, the article leaves out the lump sum option in outlining the different ways that borrowers can receive funds. It also cites CNN Money in stating that origination fees on a $500,000 home could exceed $7,000. In fact, origination fees are capped at $6,000.
Additionally, the article cites a former mortgage broker in falsely stating that the home does not go to the heirs.
Read the full article at Zillow.com.
Written by Elizabeth Ecker
