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.
Is it the best possible tool for everyone. If I said yes here you should stop reading and move on. It's not. I get asked by my clients, "Is this right for me?"
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.
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.
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.
Regardless, people have and will continue to have financial difficulties which a reverse mortgage could be the solution as an excellent source of funds.
Is it the best possible tool for everyone. If I said yes here you should stop reading and move on. It's not. I get asked by my clients, "Is this right for me?"
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.
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.
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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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.
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