{"id":2292,"date":"2024-05-06T14:12:54","date_gmt":"2024-05-06T14:12:54","guid":{"rendered":"https:\/\/remarkablemortgage.com\/?p=2292"},"modified":"2024-05-09T20:53:54","modified_gmt":"2024-05-09T20:53:54","slug":"do-you-see-a-downside-to-a-reverse-mortgage","status":"publish","type":"post","link":"https:\/\/remarkablemortgage.com\/?p=2292","title":{"rendered":"“Do you see a downside to a Reverse Mortgage?”"},"content":{"rendered":"\t\t
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<\/p>\n\n\n\n

What is the downside to a Reverse Mortgage?<\/em><\/p>\n\n\n\n

Is there a downside to a Reverse Mortgage and, what are the \u201cPro\u2019s & Con\u2019s\u201d of a HECM are questions that must be answered. <\/p>\n\n\n\n

Since I am a Reverse Mortgage broker and company owner, I am a true believer in the loan and the program. So I’m not going to answer those questions from my perspective, instead I’ll share what other people have told me; pro & con, upside & downside.<\/p>\n\n\n\n

<\/p>\n\n\n\n

First, The “Cons” Of A Reverse Mortgage.<\/strong><\/p>\n\n\n\n

Over the years I\u2019ve had a number of people tell me they are not interested in a Reverse Mortgage. When I hear that, I ask this, \u201cCould you please tell me why you\u2019re not interested in a Reverse Mortgage?\u201d<\/p>\n\n\n\n

Here are some of the reasons people are \u201cNot Interested\u201d. I’ve discovered their \u201cCons\u201d are based on some strong convictions.\u00a0<\/p>\n\n\n\n

    \n
  • They do not want the US government connected to their home in any way, shape or form.  <\/li>\n\n\n\n
  • If they have a mortgage, they have a plan for making their payments in retirement. <\/li>\n\n\n\n
  • They don\u2019t have a mortgage, and they do not want to add any type of new mortgage.<\/li>\n\n\n\n
  • They have enough monthly money. <\/li>\n\n\n\n
  • They are simply not interested and that is that. (I’ll add, if they’re not open to a conversation, I leave it at that)<\/em><\/li>\n<\/ul>\n\n\n\n

    <\/p>\n\n\n\n

    If you look for negative information, you will find negative information. If you search for positive information, you will find plenty of that as well. <\/p>\n\n\n\n

    The downside of researching both positive and negative information is that the most important factor in a Reverse Mortgage is usually missing: Your story.<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    “You have information, we’re interested in your situation”<\/strong><\/em><\/p>\n\n\n\n

    <\/p>\n\n\n\n

    The ‘Pro” Side Of A Reverse Mortgage <\/strong><\/p>\n\n\n\n

    Then there is this story. A wonderful couple contacted me about a Reverse Mortgage. At that time the wife had been in cancer treatment for 15 years. The husband had lost his wholesale flower business in a downturn late in his career.   <\/p>\n\n\n\n

    They owed about $75,000 on a home that was worth around $400,000. They were getting by on Social Security and a small stash of quickly dwindling cash. <\/p>\n\n\n\n

    We talked, they attended counseling, we completed the loan process and got a clear to close .(CTC)<\/p>\n\n\n\n

    As we were signing the closing documents at their table, Don looked at me and said, \u201cMark, what is the downside to a Reverse Mortgage?\u201d<\/p>\n\n\n\n

    He kind of caught me off guard, because at that time I hadn\u2019t thought much about the downside, or the \u201cCons\u201d of a HECM.<\/p>\n\n\n\n

    \u201cWell Don, I can\u2019t really think of any\u2026\u201d So I tossed it back at him. \u201cCan you see any downsides?\u201d<\/p>\n\n\n\n

    He smiled and said, \u201cThe only one I can think of is if we aren\u2019t able to get through this stack of papers.\u201d<\/p>\n\n\n\n

    Update On Don And His Wife.<\/strong><\/p>\n\n\n\n

    About two years after we closed their Reverse, I got a call from Don. I was on with someone so I rang him right back. <\/p>\n\n\n\n

    \u201cHi Don, it’s Mark calling back.\u201d<\/p>\n\n\n\n

    Hey Mark, I figured you were so busy counting your money you couldn\u2019t answer the phone.\u201d I laughed. I wished he was right.<\/p>\n\n\n\n

    He called me about two things: First, his wife had died. I was sad, she was a lovely and gracious person who treated me like an honored guest, even though she was suffering everytime I visited.<\/p>\n\n\n\n

    With her gone he wanted to know if he needed to do anything different about his loan. I told him no, nothing needed to be done.<\/p>\n\n\n\n

    Then he said, \u201cI\u2019ve been getting lots of letters about Refinancing my Reverse. I figured I should ask you about that since you\u2019re our guy.\u201d <\/p>\n\n\n\n

    I looked at his current value, the interest rate and his age. (His wife was a bit younger) And he mentioned that his son was now living with him. “Is your son 62 or older?” I asked. <\/p>\n\n\n\n

    “No, he’s not. Why?” he asked.<\/p>\n\n\n\n

    “It could be possible to put him on your loan if you want him to have your house.” <\/p>\n\n\n\n

    <\/p>\n\n\n\n

    We refinanced his Reverse, in his name. His value had gone up considerably in the past several years. (That\u2019s Denver) He got about $35,000 more in his Line of Credit, and I was able to pay for the entire refinance. (When I can, I do that) <\/p>\n\n\n\n

    Yes, he was able to get through the big stack of papers, again.<\/p>\n\n\n\n

    <\/p>\n\n\n\n

    A Real Reverse Mortgage Story.<\/p>\n\n\n\n

    Thanks for stopping, looking & listening<\/p>\n\n\n\n

    Mark Schmidt<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

    What is the downside to a Reverse Mortgage? Is there a downside to a Reverse Mortgage and, what are the \u201cPro\u2019s & Con\u2019s\u201d of a HECM are questions that must be answered. Since I am a Reverse Mortgage broker and company owner, I am a true believer in the loan and the program. So I’m […]<\/p>\n","protected":false},"author":1,"featured_media":2294,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"_links":{"self":[{"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/posts\/2292"}],"collection":[{"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2292"}],"version-history":[{"count":16,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/posts\/2292\/revisions"}],"predecessor-version":[{"id":2361,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/posts\/2292\/revisions\/2361"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=\/wp\/v2\/media\/2294"}],"wp:attachment":[{"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2292"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2292"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/remarkablemortgage.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2292"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}