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In The Process They Ask The Client If They Are Going To Use The Proceeds To Buy An Annuity. That Is If You Use Wells Fargo
Reverse MORTGAGE
- Thread starter NYinsurance417
- Start date
MikeJ
Expert
- 29
I do reverse mortgage counseling on the side. This is a mandatory step seniors must go through before they're allowed to proceed with their lender in closing the RM loan.
The product is actually quite good in select circumstances. Seniors on a RM can tap a large percentage of their equity (some is unavailable, held aside to cover the growing loan balance), pay off an existing forward mortgage and stay in the home even after the loan goes upside down. All the while they now have extra cash in their bank account to spend however they see fit.
The loan costs are front loaded, so a RM is pretty expensive upfront. However, since they pay these closing costs out of current equity, not their pocket, they never seem to mind.
All they care about is "How much cash can I get out of this loan?" : )
The product is actually quite good in select circumstances. Seniors on a RM can tap a large percentage of their equity (some is unavailable, held aside to cover the growing loan balance), pay off an existing forward mortgage and stay in the home even after the loan goes upside down. All the while they now have extra cash in their bank account to spend however they see fit.
The loan costs are front loaded, so a RM is pretty expensive upfront. However, since they pay these closing costs out of current equity, not their pocket, they never seem to mind.
All they care about is "How much cash can I get out of this loan?" : )
MikeJ
Expert
- 29
The average fee charged is $125.00 per telephone or F2F session. Mine are all done over the phone, and take a little over an hour to complete with all the paperwork involved. I earn through the company about $60.00 per session. I say that with a caveat however; since sometimes the appraisal comes in low, they therefore do not qualify for the RM, so they will stiff you on payment. Bottom line, 1 out of 3 end up not paying, so my true average is $40 per session.
The counseling is really not that though to do. The hardest part is the test. Much harder than the insuance licensing exam. I passed on the first try because I test well, but many just cannot seem to pass and give up after a few tries. You can google info on how tough this test is, which means if you take it and pass, you will be very marketable to RM counseling agencies which badly need counselors. It's easy money really.
The counseling is really not that though to do. The hardest part is the test. Much harder than the insuance licensing exam. I passed on the first try because I test well, but many just cannot seem to pass and give up after a few tries. You can google info on how tough this test is, which means if you take it and pass, you will be very marketable to RM counseling agencies which badly need counselors. It's easy money really.
- 582
3-4 points right off the top depending on the bank...
I do reverse mortgaes full time and insurance part time. I canadvise you.
rainmand
New Member
- 18
>>How much does the agent make on Reverse Mortgages on avg?
It depends on the program, and when they get it, Mark. Right now the secondary market loves the 4.75% fixed interest rate program, and is paying a premium for it, so I'm able to offer that program to homeowners without fees - I pay 100% of them. However, the secondary market isn't as excited about the variable rate programs, so they don't pay a premium for them, so I'm unable to pay all the fees. However, I am able to reduce the Origination Fee ... it depends on the program they've selected, and how much cash is being taken when the loan funds.
It depends on the program, and when they get it, Mark. Right now the secondary market loves the 4.75% fixed interest rate program, and is paying a premium for it, so I'm able to offer that program to homeowners without fees - I pay 100% of them. However, the secondary market isn't as excited about the variable rate programs, so they don't pay a premium for them, so I'm unable to pay all the fees. However, I am able to reduce the Origination Fee ... it depends on the program they've selected, and how much cash is being taken when the loan funds.
- 8,707
rainmand said:
Really you think Mark is still waiting for an answer 2 years later?
- 15,319
He's dredging up old threads as if anyone cars about the answer 1-3 years later.
Get ready for some spam-o-rama shortly.
Rick
reversemort
New Member
Take the help of a reverse mortgage counselor to go over your eligibility requirements, financial implications, and alternatives to obtaining a reverse mortgage.He can suggest whether a reverse mortgage product is right for you and will meet your specific needs.
