The Borrower I Want as Reverse Mortgage Expert
As a mortgage professional working only with reverse mortgage customers, I am constantly contacted with a myriad of different scenarios. Some are true potential customers, some should think of other options.
I certainly don't tell all of them how great the reverse mortgage is for them. It's simply not a great option for all of them.
It's a bad option for some, a okay option for others, and great option for the remainder. Let's talk about the great ones today.
Closing costs are expensive for these mortgages. As such I'm very interested to know the time frame a senior plans on residing in the home.
Most important in my mind is to help my customer understand that their will be a fairly high cost to get the mortgage. My efforts are to ascertain the customers needs relative to cost.
Of all responses i prefer them to say something about being carried out in a box. From a reverse mortgage perspective, from the customer's viewpoint, this is best as the cost to money gets less and less as the lengh of the mortgage extends.
If you ever apply for a reverse mortgage the lender will furnish you with a disclosure detailing how much the loan costs you over time.
The disclosure gives snapshots of the annual cost of the mortgage over various years. You'll see how cost reduces over time.
Along with a long mortgage period the best reverse mortgage customers are those without the ability to add income to a financial situation which is already under water.
Most reverse mortgages are taken out by a customer with a fixed income as described.
And the last is the attitude that the kids are fine and don't need mom and dad leaving as much as possible to them after passing. On top of that, "we have our own lives and we're going to live before we die".
Some people are dead set on leaving as much as possible to the kids. Reverse mortgages rarely sit well with these folks because the interest is constantly working against the equity in the home.
To conclude we're looking for three things: "they're going to carry me out of the house", non-recoverable financial hardship, and lack of desire to leave inheritance to the kids.
I certainly don't tell all of them how great the reverse mortgage is for them. It's simply not a great option for all of them.
It's a bad option for some, a okay option for others, and great option for the remainder. Let's talk about the great ones today.
Closing costs are expensive for these mortgages. As such I'm very interested to know the time frame a senior plans on residing in the home.
Most important in my mind is to help my customer understand that their will be a fairly high cost to get the mortgage. My efforts are to ascertain the customers needs relative to cost.
Of all responses i prefer them to say something about being carried out in a box. From a reverse mortgage perspective, from the customer's viewpoint, this is best as the cost to money gets less and less as the lengh of the mortgage extends.
If you ever apply for a reverse mortgage the lender will furnish you with a disclosure detailing how much the loan costs you over time.
The disclosure gives snapshots of the annual cost of the mortgage over various years. You'll see how cost reduces over time.
Along with a long mortgage period the best reverse mortgage customers are those without the ability to add income to a financial situation which is already under water.
Most reverse mortgages are taken out by a customer with a fixed income as described.
And the last is the attitude that the kids are fine and don't need mom and dad leaving as much as possible to them after passing. On top of that, "we have our own lives and we're going to live before we die".
Some people are dead set on leaving as much as possible to the kids. Reverse mortgages rarely sit well with these folks because the interest is constantly working against the equity in the home.
To conclude we're looking for three things: "they're going to carry me out of the house", non-recoverable financial hardship, and lack of desire to leave inheritance to the kids.
posted by Debt Consolidation Loan at
10:44 PM
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