I have been in the lending industry for over 30 years and 11 years ago I began a difficult path by becoming a Reverse loan consultant. By saying “difficult”, I mean that I had no idea then about the negative image the FHA loan program had at the time and still continues as of now in spite of all the excellent information that is available to put this myth to rest.
At the time of my introduction to the federal program, there was only one choice for a senior to select, unlike what has evolved in the last several years.
And that was the HECM line-of-credit. You know? An adjustable rate loan which is always the standard mortgage whether it’s a Reverse or regular loan where you draw on the money when you wish to.
Well, things changed and eventually a Fixed rate option was offered and of course due to the fact that most people are conditioned to think that having a Fixed rate is always the best choice, “some” Reverse loan consultants pushed this option on the potential senior client, using that perception to make a larger commission for themselves.
To Be Continued.