There is no doubt that a Reverse Mortgage is not a one-size-fits-all solution. Since every borrower’s needs are different, the Federal Reverse Mortgage serves a different purpose for each borrower. For example, some borrowers use the funds to bridge a specific financial gap; for others, they merely want to get rid of their monthly mortgage payment. Regardless of the borrower’s needs, the Reverse Mortgage can solve many financial issues.
Corporate trainer for Reverse Mortgage Funding, Craig Barnes, agrees that “there should be a strong value perceived among prospective borrowers.” In other words, those who may look to the Reverse Mortgage in the future should be able to recognize the Reverse Mortgage for what it is: a premium product. “If we perceive value in something- a better brand of clothing, a type of car, food or cell phone plan – we are usually willing to pay more for it,” states Barnes. He continues to ask, “But have we ever thought about paying more for a mortgage product where the line-of-credit grows, monthly principal and interest payments are not required, you never have to pay back more than the home value, and it is government insured?” What a valid point!
Furthermore, the Reverse Mortgage is a problem-solving tool that prospective borrowers should be able to view as that “premium product.” Here are just three common financial problems the Reverse Mortgage can solve:
- High Mortgage Payments – If you are 62 years old or older with high mortgage payments, the Reverse Mortgage can be what you need to eliminate that monthly obligation. Can you imagine the savings put back into your pocket each month if you subtract your mortgage from your income?
- Revolving Credit Card Debt – For many seniors, credit card debt is a lingering issue. By allowing borrowers to withdraw cash from their home equity, a Reverse Mortgage can help pay off the credit card debt in full, or it can provide monthly payments to help you pay the debt over time.
- HELOC Shock – Since many baby boomers took out home equity lines of credits (HELOC) during the pre-recession era around ten years ago, many borrowers will see increased payments in the future. However, the problem is that most seniors, especially those on a fixed income, do not have extra money set aside to pay off their HELOC. If there are funds left over from the Reverse Mortgage, a borrower can use it to pay off the HELOC balance.
If you identify with one or more of the problems above, we strongly encourage you to give us a call at 1-800-420-5515 to discuss how the Reverse Mortgage may be the solution you need. With over 25 years of experience, we have assisted thousands of senior homeowners with their unique circumstances/needs.
Additionally, some of the seniors we helped had multiple issues that the Reverse Mortgage solved all at once. For you, this may be the one-size-fits-all solution to help you enjoy your retirement.