For sure, reverse mortgage has been a life-saver for senior citizens who are 60-62 years and older. One may have a very strong portfolio of real estate assets, but still can be struggling with cash in hand for meeting monthly expenses. If you have equity built up in your home asset, that can be a golden source to help you become cash-rich.
It is a crucial tool. Drawing from your 401K, or any other investments at this time will be a disaster. Rather you take advantage of a reverse mortgage opportunity, if you can. Reverse mortgage has been great for seniors and the future of this industry is brighter than ever. For months to come, we are going to see a massive flow of reverse mortgage loan products.
The reverse mortgage, especially the HECM reverse mortgage is insured by the FHA.
Being a federally-insured reverse mortgage, the borrower will receive loan payments as agreed upon by the terms of your loan, and will never owe more than your home is worth.
Even though there has been a temporary slow down for all financial programs due to COVID-19 issues, the reverse mortgage loan program will be stronger than ever. April 2020 has been the lowest in reverse mortgage activity. Lenders are hesitant to start applications. Even the appraisers are not able to do their job except doing a drive-by inspection because of the virus threats.
A lot of people who are not initiating their loan applications right now, will soon come forward to start their applications for reverse mortgages. The current low interest will be an incentive and there are a lot of opportunities for people to take advantage of . When people lose their jobs it is hard to get a loan or line of credit. That is not the case for a reverse mortgage. Because you are taking out a loan at your equity in the real estate you own. It is a collateral based loan. So it is not a similar situation as in the case of forward mortgage loans.
I think it is going to be a great remaining months of this year for reverse mortgage, despite the predicted other financial crises. I am excited to take on reverse mortgage signing assignments such as loan applications as well as final loan closings.
I am not a financial advisor, so don’t take my word for it. Regardless, for those seniors who are cash poor but have equity built up in their real estate asset, I urge you to first consult with a HUD approved counselor to get all the scoop about reverse mortgage products before you dive into it.
Comments(3)