Like any financial product or loan, a reverse mortgage isn’t for everyone, but when it’s used for the right reasons it can dramatically improve a homeowners financial position, lifestyle and well being.
Basically, a reverse mortgage is borrowing against one of your assets, your home. I think the danger to a homeowner comes from two basic places. 1. They don’t do their homework and get educated about the product, comparing and contrasting providers, costs and options. 2. They don’t take a clear look down the road and have plans for when they are truly elderly, possibly frail and in need of some care.
I tell my clients all the time, “Remember last year when you were 40?” They laugh an say, “It sure seems like last year!” (Because now they are 65 or 70) “Well...Do some thinking now, so that next year, when you are 85 or 90 you are not suffering because a younger you blew it.”
Believe it or not, it’s not so much the reverse mortgage that will cause them trouble but how they access the funds a reverse mortgage turns loose. The attractive phrase “Fixed Rate” will often shut down a sensible person’s open mind to the benefits of the “Adjustable Rate”. So do your homework, think about where you will be when you are 70, 80, 90 and 100. Do you want to be able to continue to tap your home’s equity to supplement for emergencies? Or do you just want to get everything you can now and the future be damned?
A reverse mortgage makes sense when a senior can understand it and they truly can “Use Their Home To Stay at Home”
If you or a loved one has questions about Reverse Mortgage, please don’t hesitate to contact me by phone or email. Your comments and questions are welcome below too!
By Deborah Nance
Your Local Southern California Reverse Mortgage Professional
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iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin.
Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.