Reverse Mortgage Guide

Over a period do years I have found that clients who have done their home work, need little or no assistance understanding why a reverse mortgage would work for them — or, in some cases, why it wouldn’t.

A number of clients have done their homework, but they still like to check with friends, family and other professionals.

Quite often a particular client will approach a family member or a close friend about a recent or pending reverse-mortgage decision.

I think some do this out of curiosity — just to see and, I think, test how much these fledging “experts” really  know. When I hear these stories I always counsel my clients that they need to remember what Will Rogers once said, “Everyone is ignorant. Just on different subjects”.

Clients often tell me they’re told, “Watch Out”! “You will lose your home”; or “A reverse mortgage is only for the poor;”, or “It’s just too darn expensive”, or “You need to be in good health”; or “You can be kicked out at any time”; or monthly mortgage payments have to be made…who ever heard of a mortgage where you do not have to make such payments”. And so forth and so on.

Many clients know better and can effectively tell others about reverse mortgages plusses and minuses.
The thing that’s bothersome is that not every reverse mortgage borrower has access to the answers which are actually correct.

___Many need to be told that you will not lose your home because you obtained a reverse mortgage;

___Many need to hear that reverse mortgages are not just for those with limited incomes. Seniors in every income bracket have obtained and used reverse mortgage financing. There’s no stigma attached to converting equity into cash, it’s what many people have done, will do today and will do tomorrow.

___Many need to hear that while a reverse mortgage has many costs, only the borrower can determine whether such costs are worthwhile to them. Some borrowers believe that it’s just too expensive. Others believe that a reverse mortgage is a good financial choice in the right circumstance — but not the right choice when circumstances are unsuitable. And, of course, shopping around is a good way to check costs.

___Many need to hear that “health” does not determine whether or not one can qualify for a reverse mortgage. Such loans are really a form of equity-based financing. Reverse mortgage proceeds can often help seniors stay in their homes when health is a concern.

___Many need to hear that contrary to what gets repeated, a reverse mortgage borrower is never obligated to make monthly mortgage payments.

There’s no substitute for asking questions. Questions are the fuel you need to get the best answers, to help you make sound decisions. When it comes to reverse mortgages, take your time, ask around and when you’re comfortable then pro or con make the choice that works best for you.

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Attorney Dennis Haber is the author of the just-published, ground-breaking book, Piggy Bank Your Home: Tap Into The Power Of A Reverse Mortgage.

This entry was posted on Wednesday, May 28th, 2008 at 12:28 am and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.