Who is a Reverse Mortgage Candidate
More commonplace than ever reverse mortgages are making their way into the senior community. Maybe it's famous spokesmen or basic financial trouble that expedites the process.
Regardless, people have and will continue to have financial difficulties which a reverse mortgage could be the solution as an excellent source of funds.
That being said, it has shortcomings and is not the best tool for everyone. I'm often asked by my prospective customers, "Do you think this is the right thing to do?"
It's amazing how trusting some people are. God bless them. I am, afterall, a loan officer who makes money only when the loan closes. If you are considering this as option get the facts and make up your own mind.
However, I'm a pretty honest cowboy and I answer back, "How long do you plan on staying in the home?" This is the most important thing to know.
Why? Reverse mortgage closing costs are high to the point that if the senior vacates and sells the home in the short term it makes getting the loan a very expensive proposition.
What I'm looking for is the customer to say, "when I leave it will be with tag on my toe." Now that's my kind of customer! The longer the loan goes on the less the loan costs the customer on an annualized basis.
The very minimum acceptable time period, outside of an emergency situation, is three years.
Being in the home for any length of time less than that would be prohibitively expensive, and i may suggest other financial alternatives.
Another point is to match the relationship of the borrower's income to the problem the customer is trying to remedy.
Incomes vary greatly. Fixed incomes, by nature, can't change to necessarily meet and beat some large or long-term financial obstacles. On the other hand if the hurdle is short term perhaps it can be worked out by some other means.
Here is your typical reverse mortgage customer... He plans on staying in the home at 3 years or longer. His income is fixed and can't change to meet his financial needs. The reverse mortgage makes sense for this man.
Regardless, people have and will continue to have financial difficulties which a reverse mortgage could be the solution as an excellent source of funds.
That being said, it has shortcomings and is not the best tool for everyone. I'm often asked by my prospective customers, "Do you think this is the right thing to do?"
It's amazing how trusting some people are. God bless them. I am, afterall, a loan officer who makes money only when the loan closes. If you are considering this as option get the facts and make up your own mind.
However, I'm a pretty honest cowboy and I answer back, "How long do you plan on staying in the home?" This is the most important thing to know.
Why? Reverse mortgage closing costs are high to the point that if the senior vacates and sells the home in the short term it makes getting the loan a very expensive proposition.
What I'm looking for is the customer to say, "when I leave it will be with tag on my toe." Now that's my kind of customer! The longer the loan goes on the less the loan costs the customer on an annualized basis.
The very minimum acceptable time period, outside of an emergency situation, is three years.
Being in the home for any length of time less than that would be prohibitively expensive, and i may suggest other financial alternatives.
Another point is to match the relationship of the borrower's income to the problem the customer is trying to remedy.
Incomes vary greatly. Fixed incomes, by nature, can't change to necessarily meet and beat some large or long-term financial obstacles. On the other hand if the hurdle is short term perhaps it can be worked out by some other means.
Here is your typical reverse mortgage customer... He plans on staying in the home at 3 years or longer. His income is fixed and can't change to meet his financial needs. The reverse mortgage makes sense for this man.
About the Author:
Learn about the biggest mistakes to make for the Texas reverse mortgage here. A bonanza of info and many Texas reverse mortgage answers are here.
posted by Debt Consolidation Loan at
11:15 PM
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