-As a Senior Citizen in the mortgage industry I am on top of reverse mortgages because they are
a terrific help to millions of senior homeowners, yet more than half of the senior homeowners think they are the worst thing ever invented in the mortgage industry. I am going to enlighten you, far more than I usually do, because I am tired of hearing how bad the best thing I have seen is, and
how the seniors are being hurt financially, which they are not.
Before I get into the subject let me tell you what I have been told to my face about reverse mortgages. One senior lady told me her realtor told her that if she takes a reverse mortgage her
health insurance will go up in price. (I just shook my head from side to side), One prospective borrower told me that his wife said if we took a reverse we would be the most selfish parents in the world. (I am still shaking my head). One young man, son of my reverse borrower told me that I was stealing the equity out of his parents house that belonged to him. (I asked him why he hasn’t volunteered to pay their monthly house payment and then he wouldn’t have to worry. I
said they really can’t carry it alone. He just got up without saying anything and left the house).
When I first sit down with the prospective borrowers and their family I always start with the
title of an old song: Born Free! I state every time that it is very possible to have a child that is
born free, my oldest daughter is one example of it. But the room turns silent when I make my next pronouncement: I have yet to hear any song that references Dying Free. It doesn’t happen very often. When it does happen and you aren’t prepared, reality is hard to accept.
So lets take a look at this wonderful invention and show why I believe it is one of the best things
that ever happened to seniors. The following is a list of benefits to you which cost you nothing.
1. You borrow money on your house up to a certain limit (explanation to follow).
There are no payments on this loan until the last person on the loan leaves the
house permanently. You must pay your property tax and insurance.
2. You can sell the house or refinance out of the reverse mortgage at any time. It
is just a loan. The difference is no payments are required and the interest on the
loan accrues and is added to the balance.
3. The only requirement to get the loan is age: 62 for the primary borrower and the
secondary borrower (spouse) can now be younger than 62. You also must own
the property and have enough equity in it. You also must have social security or a
small amount of money in the bank to show you can pay your property tax.
4. The house can lose all its value for any reason and the loan continues. The house
can gain in value and the only thing that happens is when the occupant leaves for
good the occupant or heirs will get more money from the sale of the property.
5. If you live and own 2-4 units there are extra perks for you when you take out your
6. You can get a reverse mortgage if you have had a bankruptcy or a foreclosure
without waiting years.
7. You can get a lump sum of cash or a line of credit or both from the money coming
out of your house.
8. You NEVER lose ownership of the house because you took a reverse mortgage.
Take the pressure off and look into a reverse mortgage. It will change your life from
worrying about making the mortgage payment and waiting for the check to arrive monthly
or seeing the bank statement with a bigger balance than, in some cases, ever before.