Who is a Reverse Mortgage Candidate
The mystique of the reverse mortgage is being continually lifted by a barrage of advertising coupled with the senior community essentially being forced by basic economics to look at it as an option.
The reverse mortgage is an exceptable and real financial problem solver if it is used in the right circumstances.
However, it does not come without reasons to choose other options. Many customers ask me, "Is the reverse mortgage okay for me. Am I making the right choice?"
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.
Well, their question in no way compromises my integrity, and I, in return, ask them as to the length of time they expect to stay at the house before moving. This is the big question.
I want to know because short reverse mortgages should be used only in dire emergencies. The cost of getting the loan for a short period is very high due to the closing costs involved.
The answer I like to hear is, "I'll be in the home until they carry me out." As a borrower stays in the home longer the cost of the loan continues to decrease as the years go on.
People all have their own time frame, but the common thought in the reverse mortgage business is one should keep the mortgage at least 3 years.
Being in the home for any length of time less than that would be prohibitively expensive, and i may suggest other financial alternatives.
The second point is to look at the relationship between the borrower's income as it pertains to the problem which the borrower is attempting to solve.
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.
The conservative answer to the question is if the borrower intends on staying in the home indefinately, and current or future income cannot solve the problem, a reverse mortgage is a viable financial lever.
The reverse mortgage is an exceptable and real financial problem solver if it is used in the right circumstances.
However, it does not come without reasons to choose other options. Many customers ask me, "Is the reverse mortgage okay for me. Am I making the right choice?"
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.
Well, their question in no way compromises my integrity, and I, in return, ask them as to the length of time they expect to stay at the house before moving. This is the big question.
I want to know because short reverse mortgages should be used only in dire emergencies. The cost of getting the loan for a short period is very high due to the closing costs involved.
The answer I like to hear is, "I'll be in the home until they carry me out." As a borrower stays in the home longer the cost of the loan continues to decrease as the years go on.
People all have their own time frame, but the common thought in the reverse mortgage business is one should keep the mortgage at least 3 years.
Being in the home for any length of time less than that would be prohibitively expensive, and i may suggest other financial alternatives.
The second point is to look at the relationship between the borrower's income as it pertains to the problem which the borrower is attempting to solve.
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.
The conservative answer to the question is if the borrower intends on staying in the home indefinately, and current or future income cannot solve the problem, a reverse mortgage is a viable financial lever.
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Get knowledge 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
10:35 PM
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