Reverse mortgages are becoming mainstream lately. Perhaps it's Robert Wagner, or maybe its life circumstance creeping up on today's seniors forcing them to use the reverse mortgage.
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?"
I'm always a little taken back when they ask me this question. I mean, afterall, I make money only when the loan goes through my company. If I weren't an honest guy I may be inclined to promote my best interests.
I stay the course and shoot back with my own question. You see everyone has a unique circumstance. What I want to know is how long they will remain in the house.
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.
Since I do make money when a loan closes I prefer them to indicate they will be in the home until death. As the loan goes on through the years it becomes less and less expensive annually to the borrower.
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 important thing to consider is weighing income against the financial issue the reverse mortgage may 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.
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. - 15224
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?"
I'm always a little taken back when they ask me this question. I mean, afterall, I make money only when the loan goes through my company. If I weren't an honest guy I may be inclined to promote my best interests.
I stay the course and shoot back with my own question. You see everyone has a unique circumstance. What I want to know is how long they will remain in the house.
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.
Since I do make money when a loan closes I prefer them to indicate they will be in the home until death. As the loan goes on through the years it becomes less and less expensive annually to the borrower.
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 important thing to consider is weighing income against the financial issue the reverse mortgage may 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.
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. - 15224
About the Author:
Get knowledge about the five costly errors to avoid for the Texas reverse mortgage here. A bonanza of info and many Texas reverse mortgage answers are here.
