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Some brokers are trying to push reverse mortgages as the quick-fix for senior's financial concerns. Its the same pitch used to get people to re-finance fixed-rate wtih variable-rate mortgages so they could treat their homes like piggy banks and just keep taking cash out. Let me repeat myself, REVERSE MORTGAGES SHOULD BE AN ABSOUTE LAST RESORT FOR PEOPLE WHO ARE IN NEED OF CASH.
Did I say that loud enough? If you think your circumstances may be best resolved by a reverse mortgage, speak to a trusted broker, not some know-it-all who tries to push it on you without the slightest idea or notion of what would work best for you.
Further, the 'points ' earned was also of concern here. After bringing this very fact up to FHA they replied that it is a fee subsidized by the government and not only does it NOT adversely effect the rate, terms or the 'product' in ANYWAY it in fact it is a 'wholesale channel, ergo: all is LESS expensive.
FHA prefers these firms to handle these programs to properly promote this to seniors as consumers attempting this directly with lenders, which is fine, are not made aware of all the aspects of the program AND alternative ones as Reverse may NOT be good for all that inquire, etc.
'Retail 'lenders are only interested in bottom line (profit; IRR, etc.) and NOT the consumer.
Good Night Arthur
Mom was approached by 2 different companies offereing Reverse Mortgages. They BOTH said that SHE COUL NOT GET A REVERSE MORTGAGE UNLESS THIS BUILDING WAS FHA APPROVED! The first wanted my mom & the business manager to split the cost of getting FHA APPROVAL. The sencond broker was willing to split the cost with the Building manager. We were led to belive for months that get FHA APPROVAL was a PIECE OF CAKE it was only at the last minute that we were told FHA APPROVAL is ot given for condo that were formally hotels.
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I quiet agree Steve, and I can see that Richard Russell's entire explaination was plagerism.
I wonder how many points Richard Russell makes off a reverse mortgage? Could be his motivating factor?
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