The Definition of the Perfect Reverse Mortgage Customer
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 don't paint a blue sky picture for each of these potential customers. They are owed truthful advice. And to some I advise to go elsewhere.
If I were going to place a ranking on how good the reverse mortgage is for customers I'd say it would be bad, okay, good, and great. People fit into all ranking. Let's talk about great.
One of the most important things I like to cover are really two things: Closing costs and length of the mortgage. I want to know the lenght of time the client expects to live 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.
The best answer I can hear is "forever". I like that because the longer someone stays in the home the cheaper the reverse mortgage gets over time.
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.
You'll see the loan at a number of different years down the pike. As it gets older you'll see the annual loan cost get less.
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.
The fixed income customer actually makes up most reverse mortgages.
I'd say the final attribute of the perfect candidate is that of not having a vital interest in leaving a large inheritance to the kids. This group is thinking about the rest of their own lives rather than the rest of their kids lives.
The very nature of a revese mortgage doesn't work very well with those who must leave inheritance to the kids. The mear thought of interest accumulating and eating away at the kids inheritance makes them very standoffish.
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 don't paint a blue sky picture for each of these potential customers. They are owed truthful advice. And to some I advise to go elsewhere.
If I were going to place a ranking on how good the reverse mortgage is for customers I'd say it would be bad, okay, good, and great. People fit into all ranking. Let's talk about great.
One of the most important things I like to cover are really two things: Closing costs and length of the mortgage. I want to know the lenght of time the client expects to live 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.
The best answer I can hear is "forever". I like that because the longer someone stays in the home the cheaper the reverse mortgage gets over time.
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.
You'll see the loan at a number of different years down the pike. As it gets older you'll see the annual loan cost get less.
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.
The fixed income customer actually makes up most reverse mortgages.
I'd say the final attribute of the perfect candidate is that of not having a vital interest in leaving a large inheritance to the kids. This group is thinking about the rest of their own lives rather than the rest of their kids lives.
The very nature of a revese mortgage doesn't work very well with those who must leave inheritance to the kids. The mear thought of interest accumulating and eating away at the kids inheritance makes them very standoffish.
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
10:40 PM
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