As a loan officer working exclusively with reverse mortgages, I speak to many prospective borrowers on a weekly basis. I'm always in the process of evaluating them as real customers.
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.
The reverse mortgage is a poor choice for some, 50/50 for some, good for some, and a great choice for the rest. I wish to tackle the latter group.
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.
What I'm trying to get at with my customer is if the cost to get the mortgage will be worth it to them. They have to understand that solving their financial issue will have a cost to it. Will the results be worth the costs?
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.
At loan application you would receive, from you lender of choice, a disclosure outlining how the mortgage reduces in cost, on an annualized basis, the longer the mortgage lasts.
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.
The third identifying trait of the a great reverse mortgage customer is the that of wanting to enjoy the rest of their lives rather than necessarily sacrificing the rest of the their lives for the kids inheritance.
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.
So, we want 3 vital traits to come up with a perfect candidate: 1. Staying until death 2. Fixed income which doesn't cover their needs 3. The desire to use the equity of the home on their lives rather than their kid's lives. - 15224
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.
The reverse mortgage is a poor choice for some, 50/50 for some, good for some, and a great choice for the rest. I wish to tackle the latter group.
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.
What I'm trying to get at with my customer is if the cost to get the mortgage will be worth it to them. They have to understand that solving their financial issue will have a cost to it. Will the results be worth the costs?
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.
At loan application you would receive, from you lender of choice, a disclosure outlining how the mortgage reduces in cost, on an annualized basis, the longer the mortgage lasts.
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.
The third identifying trait of the a great reverse mortgage customer is the that of wanting to enjoy the rest of their lives rather than necessarily sacrificing the rest of the their lives for the kids inheritance.
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.
So, we want 3 vital traits to come up with a perfect candidate: 1. Staying until death 2. Fixed income which doesn't cover their needs 3. The desire to use the equity of the home on their lives rather than their kid's lives. - 15224
