The Borrower I Want as Reverse Mortgage Expert
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.
Closing costs are expensive for these mortgages. As such I'm very interested to know the time frame a senior plans on residing 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.
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.
The disclosure gives snapshots of the annual cost of the mortgage over various years. You'll see how cost reduces over time.
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.
Most reverse mortgages are taken out by a customer with a fixed income as described.
And the last is the attitude that the kids are fine and don't need mom and dad leaving as much as possible to them after passing. On top of that, "we have our own lives and we're going to live before we die".
Some people are dead set on leaving as much as possible to the kids. Reverse mortgages rarely sit well with these folks because the interest is constantly working against the equity in the home.
To sum up a great reverse mortgage cadidate, we are looking for an attidute of us first, kids second; static income which isn't enough; and an extending mortgage period hopefully as long as the borrower lives.
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.
Closing costs are expensive for these mortgages. As such I'm very interested to know the time frame a senior plans on residing 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.
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.
The disclosure gives snapshots of the annual cost of the mortgage over various years. You'll see how cost reduces over time.
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.
Most reverse mortgages are taken out by a customer with a fixed income as described.
And the last is the attitude that the kids are fine and don't need mom and dad leaving as much as possible to them after passing. On top of that, "we have our own lives and we're going to live before we die".
Some people are dead set on leaving as much as possible to the kids. Reverse mortgages rarely sit well with these folks because the interest is constantly working against the equity in the home.
To sum up a great reverse mortgage cadidate, we are looking for an attidute of us first, kids second; static income which isn't enough; and an extending mortgage period hopefully as long as the borrower lives.
posted by Credit Counseling at
10:45 PM
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