The Definition of the Perfect Reverse Mortgage Customer
As a guy who specializes in reverse mortgage lending I obviously get many calls from would-be customers. I listen to their situations, ask questions, and arrive at conclusions.
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.
It's a bad option for some, a okay option for others, and great option for the remainder. Let's talk about the great ones today.
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.
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.
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.
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.
Fixed incomes play an important role in making up the perfect reverse mortgage customer.
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.
Many have a mind set that they must leave something to the kids. It's vital to them. The reverse mortgage is a financial tool that allows a mortgage without paying monthly. Interest tacks on to the mortgage which doesn't normally give this group warm fuzzies.
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.
It's a bad option for some, a okay option for others, and great option for the remainder. Let's talk about the great ones today.
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.
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.
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.
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.
Fixed incomes play an important role in making up the perfect reverse mortgage customer.
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.
Many have a mind set that they must leave something to the kids. It's vital to them. The reverse mortgage is a financial tool that allows a mortgage without paying monthly. Interest tacks on to the mortgage which doesn't normally give this group warm fuzzies.
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
10:40 PM
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