"Reverse Mortgages Fit an Important Niche..."

By
Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768

"Reverse Mortgages Fit an Important Niche..."

Says Columbus Dispatch

The reverse mortgage program has undergone many changes in the past few months, and while some may say it is not worthwhile, despite all the success stories, the reverse mortgage industry will not give up on trying to educate consumers, financial planners, etc. on the benefits of the program.

Most importantly, for those who say the reverse mortgage program is on its way out, Columbus Dispatch says, "reverse mortgages fit an important niche," and for that very reason alone they will never cease to exist.

Even in marketing, and branding your company, they say, "find your niche."

Niches serve a small, but very important part of a certain market. They give you a determined focus and a specific group to appeal to. They exist outside the establlished norm, in this case, retirement planning strategies, but can be just as worthwhile and advantageous as any mainstream solution.

Stephanie Moulton, an assistant professor at the John Glenn School of Public Affairs at Ohio State University stated:

"The horror stories are not the norm. The product fits a niche, an important niche, especially as baby boomers retire and don’t have enough savings in retirement. It’s a way for retirees to access equity in their home in a safe manner.”

The fact of the matter is, even if borrowers have saved enough for retirement, a reverse mortgage is still an important product to consider. Most importantly, because it is one of the only ways to access the money you have invested for years in your home without having to sell it and move away, especially if a borrower has already decided they want to age in place.

A home is where you live, where you form new memories and build a family, but it is also an investment. It's the equivalent of getting stocks and then not seeing a return investment. Borrowers invest in a home and then can take advantage of the equity they have build throughout their working years to have cash at hand or save it in a rainy day fund.

The reverse mortgage fits an important niche, and serves a sector of the population that may not have saved enough or may simply want a return on their lifetime investment. Even if it's as simple as no longer wanting to pay a mortgage during retirement, a reverse mortgage is an option save for selling and moving away from a neighborhood you've grown to love.

Borrowers, if anything, need to know a reverse mortgage is a safe and reliable option if they chose to look into it. Scaring them with endless horror stories, which do not make up even a quarter of the experiences, only prevents borrowers from taking a closer look at a program that may be beneficial for them in the future.

It's an option for retirement planning, if more borrowers, financial planners and other "weary travelers" would look into it, they may be pleasantly surprised.

If you want more information on the reverse mortgage program give PS Financial Services a call at (888) 845-6630 or via email at info@PSReverseMortgage.comWe do not pressure those who inquire. We are simply here to help.

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Information and content in this blog is original to Phil Stevenson

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Phil Stevenson

PS Financial Services

Owner and Principal Mortgage Originator

Certified Reverse Mortgage Professional (CRMP)

LO #365768

NMLS #968090

Cell: 888.845.6630

Miami Mortgages & Florida Mortgages

Copyright © 2013 by Phil Stevenson & PS Financial Services, LLC

Comments (4)

1~Judi Barrett
Integrity Real Estate Services 116 SE AVE N, Idabel, OK 74745 - Idabel, OK
BS Ed, Integrity Real Estate Services -IDABEL OK

I only know of one person that did a reverse mortgage.. I'm not sure that I would recommend one to clients.. maybe i need to do a little more research.

May 07, 2014 11:03 AM
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Phil, No matter what I think of HECM loans, I agree, scaring them should be out of the question. Just give them the facts. Let them decide.

Bill Roberts

May 08, 2014 12:25 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Judi, there are borrowers who have had a bad experience with a reverse mortgage, I'm not going to deny it, but one experience does not dictate the whole program, especially considering the consequences.

I spoke to a lead a few months back who wanted to refinance to include her husband on the loan as he was a non-borrowing spouse when it was first done, but the value was not there. 

This is only one of the instances where a borrower has a bad experience and labels the reverse mortgage as a bad program but, to be honest, it is up to the borrower if they want to close with an NBS.

This is why I always stress counseling as a crucial part of the process and am always available if borrowers were to have any questions before, during or after the process. 

One bad experience does not determine the whole program. In addition, that experience should be further analyzed to determine what went wrong and correct the mistake in the future.

May 08, 2014 02:45 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Bill, you have a clear head on your shoulders. The point is, fear prevents may borrowers from even considering it, or entertaining the idea for the future. It may be for them, it may not be but, like failure, it is only failure if you don't try. On top of everything, borrowers have three days after the closing to determine if everything is in order and they wish to go through with the process.

The safeguards are there but if a consumer isn't even willing to talk out their options, I doubt they'll be able to make an educated decisions.

May 08, 2014 02:49 AM