Reverse Mortgages Still Popular

Posted on January 13, 2013. Filed under: Uncategorized |

A Reverse Mortgage is a wonderful tool for the right person for the right reasons. Surveys have shown that over 90% of Reverse Mortgage borrowers are happy. However, some negative articles with inaccurate information have surfaced, and it’s important to set the record straight.

For my borrowers, 98% have been very pleased that they got their reverse mortgage, and they would do it again. Several have refinanced again and pulled money out for varying reasons. Naturally, you want to keep some equity in your home or a bank account for home repairs or for other reasons. And, if you feel your equity is dropping, every reverse mortgage lender will accept payments. Check with them as to the minimum they will accept. This is not required, but it can pay some of the mortgage insurance premiums and then to the interest, and finally to principal.

Zero Balance on Mortgages or Some Balance: When you get your reverse mortgage, it’s always better to have no mortgage balances and also better when you are older. If you get a reverse mortgage at age 62, the minimum age, and if you have a large mortgage balance to pay off, your equity will be much less years down the road than if you had no mortgage balance at all.

Some of the articles about reverse mortgages mention the expenses and closing costs. Reverse mortgage are FHA loans, and one must remember that FHA costs are pretty much the same with a typical FHA and a reverse, but maybe a little higher. With the HECM Saver, a lower closing cost option, the fee at closing for FHA mortgage insurance is much lower and spaced out over the years so that can be a worthwhile option. However, the FHA HECM Saver does not provide as much proceeds to the borrower as the HECM Standard loan.

Be sure to discuss your options with a Reverse Mortgage Specialist to find out whether a Reverse Mortgage works for you and which program is best. Remember: It has to work for you, not anyone else. You have to be comfortable with the program. Be sure to discuss the Reverse Mortgage with family and counsel you trust, but especially a Reverse Mortgage Specialist duly licensed. You can check licensing at: http://nmlsconsumeraccess.org/

I am here to answer questions and my cell phone is always best. Kathie Adler, 631-804-9044, Senior Reverse Mortgage Specialist, NMLS 65780, Advisors Mortgage Group, LLC. Kathie originates mortgages in New York and New Jersey. Advisors Mortgage | 407 Pine Street, Red Bank, NJ. 07701 | Office: 732-383-5382 | Fax: 732-640-5660 | Branch NMLS # 258969, Company NMLS Identifier, 131572.

Advisors Mortgage Group LLC is an A+ Better Business Bureau rated company and a Multi-State Mortgage Banker with Headquarters located in Central New Jersey with offices throughout the US. Headquarters are located at 5114 Route 33, Wall, NJ 07727. New York Mortgage Broker License: 206697. Licensed by the N.J. Department of Banking and Insurance. Licensed Lender and Secondary Mortgage Lender no. 631155. All NY loans arranged through third party providers (FHA License #1548300002).