If you follow our weekly blogs, the name “Jamie Hopkins” may ring a bell. He is a prominent retirement writer and college professor who specializes in Reverse Mortgage research and advice. As such, he has successfully published books and has participated in national seminars to educate consumers about the complexities of financial products, specifically the Reverse Mortgage.
Recently, Hopkins decided to take a novel approach to tackle common Reverse Mortgage misconceptions for Kiplinger, a Washington, D.C. based publisher of business forecasts and personal finance advice. Instead of formatting a discussion to address common Reverse Mortgage misconceptions, Hopkins developed a 10-question quiz.
The quiz covers common topics such as whether or not the lender takes ownership of a property, the non-recourse feature of the loans, and what happens to a non-borrowing spouse should the primary borrower be placed in a nursing home. After consumers took the online quiz, Hopkins stated the following conclusion based on the results: “Very few retirees and their financial advisors know much about how to properly utilize the home equity in retirement planning. Home values frequently represent the bulk of the average American’s retirement savings. Since most retired homeowners want to live in their houses for as long as possible, tapping into home equity must be done thoughtfully and through a well-informed, comprehensive retirement planning process.”
Additionally, Hopkins provides a balanced look at the downsides of the Reverse Mortgage, which he states, “A big downside of using a reverse mortgage is that it is still borrowing. “ However, Reverse Mortgage Answers would like to add to Hopkin’s statement that the benefits far outweigh any of the downsides. As long as borrowers know what they are going into and work one-on-one with an experienced Reverse Mortgage Specialist, there are no pitfalls.
As a Reverse Mortgage company, we find that in addition to many retirees lacking a proper understanding of how the loan works, many retirees choose to believe the misconceptions regarding the loan. Our 25 years of experience allows us to work with each borrower, answer all of their questions, and make sure that they understand the loan before continuing forward with the rest of the process. This gives our borrowers the confidence to know they are making the right decision for them.
We understand that financial products can be difficult to understand. That is why we break down the terms and conditions of the loan into easy to understand concepts for each borrower. Many borrowers initially show signs of skepticism; however, most if not all of our borrowers improve the quality of their retirement instantly with the Reverse Mortgage.
If you are interested in learning more about this program, give us a call at 1-800-420-5515. There are no costs because our advice is free of charge to you!
Would you like to test your knowledge about Reverse Mortgages? Take Hopkin’s quiz here.