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I have been a Reverse Loan Consultant for almost 15 years and when I first started in this amazing and wonderful industry, the fees were very costly but that has changed over the last several years and the loan has become a terrific option to utilize one’s equity without being obligated to make mortgage payments each month.
My previous post was part of an article that I will share the remainder of here, but it discussed how much equity is in American seniors homes; well over $12 Trillion dollars and growing.
Seniors number 1 concern, is outliving their money. Let’s face it. No one can live on Social Security and if one is fortunate enough to have a pension and investments, there is the concern about drawing down on them too soon and…
Running out of money.
A Reverse loan can eliminate that fear and worry and if a senior would get over their fear an bias about them, they will find out that they are very affordable.
As a matter of fact, I can offer a No Cost Reverse loan. It just depends upon the size of the loan.
And the Title stays in their name or Trust AND THE BANK NEVER TAKES OVER THE PROPERTY.
Here is the remainder of the article that I’m carry over from the previous post.
The Street: Education is Key When Discussing Reverse Mortgages
September 5th, 2016 | by Alana Stramowski Published in News, Reverse Mortgage
There are some facts that homeowners need to know before taking out a reverse mortgage though. A small, but important detail that often is overlooked is the fact that the amount withdrawn during the initial year of taking out a reverse mortgage determines the mortgage insurance premium when the loan is closes.
The fees used to be extremely high, in some cases, but now, the Department of Housing and Urban Development (HUD) limits origination feed to just 2% of the first 200,000 of the maximum claim amount plus 1% of additional home value, but not exceeding at total of $6,000. according to the article.
Reverse mortgages can be extremely complicated for those homeowners taking a look for the first time, but with the proper education, they can see how the product could benefit them to support their overall retirement plan.
Read the full article on The Street.
Written by Alana Stramowski
There was an interesting column that was written recently in Forbes that questioned why more seniors aren’t researching the benefits of using a reverse mortgage to extend their retirement funds.
I of course, have the answer.
It’s fear and the unwillingness to even speak over the telephone with a qualified Reverse loan consultant. I know, because I speak from experience.
The general public, professionals and the media that continues to churn out inaccurate stories of someone’s bad experience with the loan, is driving a mindless and inappropriate fear about them.
And this idiocy and ignorance is hurting the senior community, because they don’t know what to believe and because of “what they have heard”, they have an opinion that is solely based on hearsay and inaccurate portrayals of the Federal loan program.
The home is the biggest asset anyone has and for a senior, it can be used to help them extend any savings or retirement funds further into the future and pay for medical and caregiving expenses.
Using a reverse loan in lieu of drawing down on any savings or investments, is a smart decision.
Currently, people over age 62 retain $4.08 trillion in home equity. Yes, you read that and it’s a huge number, isn’t it?
But people get weird and defensive when you mention “reverse mortgage”, because of the bad things that they have heard about it
“The biggest hindrance: long-held misconceptions and miseducation of the reverse mortgage product in the eyes of the consumers”. Forbes
I have been a Reverse loan consultant for almost 14 years and it has been a continual struggle to develop consistent business because of the incessant, negative pounding that doesn’t stop.
However, I do feel that it has become less of an issue and there is more positive press than in the past, as professionals and the general public are becoming educated about why this is such a great retirement tool and a positive experience.
Costs have been reduced ( That was always a BIG objection) and with the new Financial Assessment in place, they are safer than ever.
And in closing, it may not be appropriate for everyone, but it’s great to have it as an option, wouldn’t you agree?