The Reverse Mortgage Association: Here To Help in Portsmouth 00210
One of the most important pitfall to avoid is dishonest reverse mortgage vendors. The old adage, “you know them by their fruits” applies here. If they seem creepy, they probably are. But how does one recognize them? For one, after contacting them, they may never leave you alone. If they get a hold of your contact information and place you on their marketing list, you may never stop receiving a mailbox full of their junk mail and annoying phone calls.
Poorly run reverse mortgage lenders may offer less-than-knowledgeable salespeople who are quick to make big promises, but in the end, utterly fail to deliver. This is called the “over-promise and under-deliver” principle. This becomes a real problem when, as interest rates rise, they take up a month or two of your time, and incur appraisal and counseling fees only to tell you that you cannot be approved for a reverse mortgage.
A limited choice of reverse mortgage programs is another disadvantage of some lenders to watch for. The big reverse mortgage banks (you know, think of the BIG bank names), are only going to offer you THEIR own reverse mortgage programs, which may not be the best fit for your needs. Only the largest correspondent lenders have access to the whole range of about 19 different reverse mortgage programs. The big banks usually have only three of these programs from which to choose.
Working with a mortgage broker in Portsmouth New Hampshire
Working with a mortgage broker is no better because they usually offer only one or two programs, they have to add extra fees onto the transaction in order to make a buck, and they don’t even know much about the programs they offer. Those are definite disadvantages! On the other hand, correspondent reverse mortgage lenders, have access to the full range of programs including all the big Banks programs. Yet, because of their wholesale relationship with them, they are able to charge the same fees as the big banks.
Selecting a Lender in Portsmouth NH
Be very careful in selecting your reverse mortgage lender in 00210. Ask for references, check their licensing, ask to see a variety of programs and ask yourself if you are convinced that they know what they are doing.
Some fall into the personal disadvantage of thinking that the reverse mortgage program is offering free money. It is not. It is simply a way to access the home equity that you have built up over the years you have owned your home and paid your mortgage. A reverse mortgage is the only way of doing this without selling your home or taking on monthly debt payments.
The service that lenders offer with a reverse mortgage is not free. It is a business transaction: the lender gets a mortgage lien on the home, entitling them to repayment with interest and you get payment-free money out of your home equity. You have to decide if the money that you receive from transaction is worth the cost. To figure the cost of a reverse mortgage, ask your lender for an amortization schedule based on your circumstances. Important: if they cannot give you one in short order, they do not know what they are doing. In this case, it would be in your best interest to find a new reverse mortgage lender.
With this information on the potential pitfalls and , you should be better prepared to investigate the reverse mortgage and decide if it is right for you or someone you know.
What to Do When Approaching Retirement in Portsmouth NH
If you are a US homeowner approaching retirement, and have already realized that your pension, social security, or 401K will not be enough to let you maintain the lifestyle you have been able to afford during your working years, you may be considering a reverse mortgage. If you are, you should take advantage of the services offered by the National Reverse Mortgage Association.
Started in 1997, the National Reverse Mortgage Association has a decade of experience in assisting both seniors who want to use reverse mortgages to help fund their retirements, and lenders who want to offer reverse mortgages as part of their services.
For homeowners who have made the decision to preserve their financial independence through reverse mortgages, the Reverse Mortgage Association offers educational programs. For lenders who wish to offer reverse mortgages, the Reverse Mortgage Association has a Code of Conduct designed to safeguard interests of older homeowners, and which it expects its lenders to honor. It has also established, and strongly recommends for reverse mortgage lenders, training in effectively dealing with the needs of older borrowers.
What Is A Reverse Mortgage?
The programs overseen by the Reverse Mortgage Association help homeowners over the age of sixty two understand how to get a part of the home equity they have accumulated as tax-free income, while still keeping full title to their homes. Taking advantage of a reverse mortgage will allow a homeowner to avoid the monthly payments which result from borrowing against home equity in the traditional manner. The Reverse Mortgage Association also oversees the lenders who actually write the reverse mortgage loans and make the payments to the homeowners.
Reverse mortgages are ideal for senior homeowners because they will not have to be paid off until the homeowner is no longer living in the home at least half of the year, or decides to sell the home, or passes away. And in the event that the home sells for a price in excess of the balance borrowed against the home mortgage, the homeowner or his or her heirs will receive the extra funds.
Watchdogging The Lenders in 00210 New Hampshire
The future demand for reverse mortgages in the US will only grow as the Baby Boomer generation enters retirement, so it is becoming increasingly essential that older homeowners have access to trustworthy lenders. The Reverse Mortgage Association has taken of the task of investigating the credibility and competence of reverse mortgage lenders so that they will reflect well on their profession.
By sponsoring an ongoing program of yearly seminars for its lenders, the Reverse Mortgage Association ensures that its members are kept up to date on all the aspects of the reverse mortgage industry, including the latest loan products and issues affecting senior borrowers. For more info see on Reverse Mortgage Loans.
If you are facing retirement and struggling to cope with a vanished pension, badly managed IRA or 401K, and soaring health insurance premiums, your financial future may seem bleak. Taking out a reverse home mortgage from a member of the Reverse Mortgage Association will assure you of getting help from a lender who operates with integrity, and let you rest a little more easily when your retirement arrives.