If you asked me a year a two ago, I would have told you that you’re crazy to look into a Reverse Mortgage. We have a number of different loan options that are great alternatives to these products without the high costs and challenges. However, on Reverse Mortgages – I changed my mind.
This happened because a client came to me with a product offering from a guy their financial planner had referred them to. They weren’t sure if it was right for them but wanted me to give my blessing. I researched some options with my Lenders, and came back to the discussion with open eyes. We sat at their table for an hour and talked about the pros, cons, and alternatives. I listened to what was important to them, what they were worried about, and what they hoped to accomplish. Turns out for them, it worked.
Why is this different than before? I believe it’s 3 things:
- 1 – There are many new variations and programs now available with Reverse Mortgages. Their are HELOCs, fixed loans, lump sums, adjustable vs fixed rates… The list goes on. With more programs it’s easier to find something that fits.
- 2 – Rates are amazing! One problem with Reverse Mortgages is that they eat away your equity based on the interest rate they are associated with. In today’s low rate market, that’s not as fast.
- 3 – Competition. More lenders are offering Reverse Mortgages now. Competition drives the costs down and keeps things competitive.
Now it’s still fair to say that these programs are not for everyone. We also have many other programs that might work better. The key is to get with someone you trust and review all your options, without them pushing an agenda. Many companies only provide reverse mortgages. In that case, are they truly able to give you other options without being biased to their own products?
If you’d like to learn more about HUD Reverse Mortgages and the alternative options, simply click here and send me an email. I’d be happy to help.
- Jeremy Beck
- Mortgage Planner
- Backin’ it Up, Reverse Style