Reverse Wins - Sometimes
Don’t fall for the hype – Reverse mortgage isn’t for everyone. When you have a seasoned professional help you with the analysis about what these loans accomplish or not, you can see for yourself if they benefit in your situation.
Of the past several reverse consults I’ve done, three resulted in “you could do this but it doesn’t get you where you want to be, so don’t do it.”
Two other clients illustrate the “shoulds”. Here are there stories.
Mrs. A inherited her home from her parents, who have recently passed. She moved in with them to help during their final years, and now she’s 69 years old and finds her social security isn’t enough to get by. There isn’t any mortgage on the house, so she’s got enough reverse benefits to take cash proceeds or a monthly income stream or a line of credit to use later. In her case, we’re doing all three: She’ll take enough cash at close to do some home maintenance, she’ll get $750 per month deposited to her checking account, and that leaves a generous line of credit for use later, for as long as she lives in the home.
Mr. and Mrs. J have two mortgages on their home, and find they are running just a bit short of cash every month. In their case, reverse offers just enough benefit that we’re paying off both loans and the house payments stop. We’re generating a monthly savings of close to $1200 per month. Now the social security and pension income they get goes a lot farther!
How do you know if you are getting advice from someone who will work for your best interest? One way is to ask for a referral from a friend or family member who has worked with someone they know and trust. The other is to check the NMLS employment data on your chosen advisor. The website www.NMLSConsumerAccess.org shows the past 15 years of employment for those of us currently writing home loans. We’re all required to have our NMLS number on our marketing materials. You’ll be surprised at the short financial services history of some people who hold themselves out as experts.
Tammy Engel is your local Mortgage Advisor. She’s been working for your best interest in purchase, refinance, and reverse mortgage statewide since 1990. Contact her at 661/822-7325 for your no obligation review, and check her NMLS status for license #235051. CaDRE #01273839