Reverse Mortgages are helping countless older Americans enjoy stable and comfortable retirements. These loans, designed for homeowners 62-plus, grant access to home equity in the form of cash or lines of credit – depending on their preference. They are non-recourse loans, meaning that the amount owed cannot surpass the value of the home or property. What’s more, they do not have to be paid back until the loan is terminated. They are a reliable option with far less risk than loans like second mortgages. This begs the question: why aren’t more people getting Reverse Mortgages?
Unfortunately, due to the many myths and misconceptions out there, Reverse Mortgages receive undue negative attention. For example, many people are under the impression that they:
- Will lose ownership of their home
- Might get evicted or foreclosed upon for an arbitrary reason
- Will outlive the loan and be removed from the home
These points are untrue and have led to a bad reputation among some retirees.
Real Reverse Mortgages are genuine government-recognized loans that will help you supplement your fixed retirement income. However, it is important that you find a legitimate partner or specialist before you move forward. For a dependable way to find out whether a potential Reverse Mortgage partner is the right choice, start by asking them these three questions:
1. “Do you offer anything besides Reverse Mortgages?”
In a way, this is a trick question. There are many legitimate resources offering multiple loans and financial services. However, only with a dedicated Reverse Mortgage specialist, who only focuses on this product, are you certain to make the most out of your loan. Those who work only in this area tend to have a much higher level of expertise than those who split their time between many different types of mortgages. This means they will know just which plan will be best suited to you and guide you in maximizing its full potential.
2. “How Many Reverse Mortgage loans have you originated?”
It may not greatly matter with other types of loans, but with Reverse Mortgages, experience absolutely matters. Keep in mind this is one of the most highly regulated loans in the US today – and with good reason. The partner you want working with you is someone who has experienced multiple Reverse Mortgage scenarios and has the knowledge and experience to educate and walk you through the process with ease. Some who claim to “do Reverse Mortgages” may have only originated 2 per year in the last 10 years. So, they may claim “10 years of experience” but that 10 years doesn’t really boil down to actual experience. You want a partner that has originated at least 50 Reverse Mortgage loans AND – going back to question one – only specializes in and focuses on this loan product.
3. “How much do I qualify for?”
The answer to this question is important, but at this point in your search, the way they answer the question is what matters. If they are quick to generate a figure with no context, you should be wary. In order to give you a proper estimate, the right partner will need more information and – more importantly – time to run the numbers and give you an honest answer. Look for the partner that does the latter. Further, if they do not inform you that Reverse Mortgage loan amounts are subject to change prior to a loan application, be wary.
Would you like to learn more about working with a legitimate and dependable Reverse Mortgage specialist? Contact Retirement Home Equity Advisors today! We are a team of licensed specialists serving senior homeowners throughout the States of Arizona, California, and Colorado. We can help you strategically leverage your home equity to decrease risk and improve financial stability throughout your retirement.
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