 When you have a reverse mortgage, who owns your house (whose name is on the title/deed)?

 There are several “payment options” or ways to get money from a reverse mortgage. Which payment option do you think will best meet your needs? What other choices do you have (if applicable)? What happens if you change your mind later and want to change your payment plan?

 When you have a reverse mortgage, do you have to make a monthly payment to the bank?

 Does the money you get from a reverse mortgage ever have to be paid back?

Questions about the Implications of a Reverse Mortgage

 When does the reverse mortgage have to be paid back?

 What homeowner responsibilities will you continue to have after you get a reverse mortgage? What may happen if you do not keep up these responsibilities as a borrower?

 What happens if you use up all the money that is available from the reverse mortgage? Offer an example tailored to client’s circumstances, such as, “What if you took all the money from the reverse mortgage in a lump sum and spent every bit of it? What would happen to you? Would you be able to go on living in your house?”

 What happens if the amount you owe under a reverse mortgage gets to be greater than your home is worth at that time? Would you have to move out of your house? Would you have to take out another loan to pay the difference?

 If you get a reverse mortgage, how does that change the amount of money that you will have to leave to your children (or other heirs)? Will your children or other heirs inherit more or less after you die, than they would have without the reverse mortgage?

 How does a reverse mortgage change the amount of money you would have left to take with you if you moved somewhere else like into a retirement community? Will you have more or less left over to spend if you move somewhere else?

Questions for HECM Refinances

 If you refinance your current HECM, will you still have to pay mortgage insurance? How does this work?

 What are some of the additional costs you will incur with a refinance?

Questions for Purchase HECMs

 When you purchase a home with a HECM, will the HECM be held on your existing home or your newly purchased home?

 How will the lender determine how much money you will need at closing? What sources of funds (money) are allowed when you purchase a home with a HECM?

 Why is it important to get a home inspection?

 When you are working with a real estate professional, what are some of the questions you should ask him/her?

Reverse Mortgage Counseling Discussion

We are happy to discuss any reverse mortgage counseling questions or concerns with you.  Please feel free to call us toll free at 1-888-888-4834 or apply online.

Our philosophy is that our clients shouldn’t learn anything new during their counseling session if they’ve spent time with us learning about a HECM reverse mortgage. Our goal is to educate first and should a reverse mortgage be a viable solution we will strive to provide a competitive fee quote and top notch customer service.

The post 10 Questions To Know For Reverse Mortgage Counseling appeared first on MLS Reverse Mortgage.

Some companies would like you to believe that these specialized loans are so intricate and confusing that Seniors can’t decide what to do without having their hands held. What am I referring to?

In recent past, I heard a couple of radio hosts discussing reverse mortgages on a very popular radio station. While I believe that it is very important to note that these particular radio host are representing a respected company in our industry, listeners need to be aware that they are on the radio because they have crowned themselves experts and purchased this time to promote themselves and their company. But, what have they said for me to write this article? Well, here it is; they boast that they are specialist in the industry and that reverse mortgages are the only thing or product that they sell. Furthermore, they promote that they only write mortgages if they visit you in person and give you the details. They tell you not to deal with any other company if they do not follow their same philosophy. These guys would like you believe that you are not capable of comprehending this seemingly complex product without them.

I say “bologna”. I own a very respected mortgage company as well. We are not a very large company owned by a very large nation wide insurance company working under a different name and poising a small local company. We are a family owned company and we pride ourselves on being very professional and courteous. We earn the respect of our clients. We cannot afford to represent one product only, nor would we. We believe that having all product types available are for the best of all of our clients. In fact, what if the reverse mortgage wasn’t the best choice for our client, we could offer our client the best financial product for their needs. I wonder if the other companies having only one product to offer would refer their client to another Broker if the reverse really wasn’t the best product or would they find it necessary to tip the scale their way and convince that client that the product they sell was in fact best for them so as not to loss a commission. It is also important to note that HUD/FHA do promote “no cross selling”, however, they reference is in regards to cross selling other non mortgage related products such as insurance annuities.

Next, lets discuss face to face visits. Certainly a face to face visit with one our clients is fun and informative. We value our clients and being in a position to see them face to face is sometimes beneficial for them, however, I do not believe that a face to face visit is imperative for them to learn. Seniors are not ignorant nor should they be treated as if they were children. When reverse mortgages were still a new product on the market HUD/FHA made it mandatory that originators had to have face to face visits with prospective Borrowers. About 1 1/2 years ago, HUD determined that the market has become so increasingly knowledgeable about these types of loans that they removed that requirement from our laws. Do not feel compelled to have someone show up at your home or be inconvenienced by having to go to someone’s office because it just isn’t necessary. If you are dealing with a Broker such as myself, you can communicate with me anytime by picking up a phone. I or any of our professional staff are available within seconds. If you or our professionals determine that you need additional informational and believe that a in home or face to face visit would make you feel more comfortable, we’ll be there. The most important reason certain Brokers push for in home visits is truly not for your benefit. Most will actively try to put themselves in front of you because they believe that once you have met them face to face, it will be more difficult for you to tell them “no”.

Please keep in mind that only HUD approved Brokers and Lenders can sell you an FHA approved reverse mortgage. We must all abide by the same rules and qualifications, so, there no real differences there. When interviewing for a reverse mortgage originator, be sure to feel comfortable with the individuals knowledge of reverse mortgages, their ability to educate you whether it be in person or via the telephone and try to ascertain if they are truly looking out for your best interest. One additional thought and I am aware that the original company I referred to in this article as well as my company are members of the National Reverse Mortgage Lenders Association (NRMLA). NRMLA members do adhere to a standard of ethics which are necessary for providing Seniors fair and honest services.

The post Face to Face Meeting or Not appeared first on MLS Reverse Mortgage.