Reverse Mortgages Information

[Charpress]

I think we should put this thread to rest.

But if anyone you know gets approached to do a reverse mortgage for the sole purpose of buying insurance or an annuity tell them to run the other way.

Yes, I agree and that is what I did.

I apologize for letting this thread get to the flame point as it has.

Let's just leave it that reverse mortgages are apparently more attractive where you live than they are where I live. I think we can agree on that much.

 

[MAPDJim]

Yes, I agree and that is what I did.

I apologize for letting this thread get to the flame point as it has.

Let's just leave it that reverse mortgages are apparently more attractive where you live than they are where I live. I think we can agree on that much.

You are too funny. Now you pull up the Homekeeper? I'll bet there are less than 1% of them out there. That was created so someone could get a reverse mortgage and then use the proceeds directly from the RM to purchase a 2nd home. As you can see a Fannie Mae Homekeeper RM will give you the least amount from any RM available.

By the way. The RM is exactly the same in all areas of the country. The only difference is zip codes dictate how much you can get (in terms of lending limit on property). They are no more or less attractive in any area of the country.

It's all good. Peace.

 

[Mr. Bill]

I think there are some still valid questions presented by the first post - what kind of companies are offering some sort of fee/commission/whatever to earn $15k per month?

 

[midwestbroker]

I have decided to talk about RM with my clients. I use a company out of CA. They broker the deal (use Financial Freedom, Bank of America, etc).

I have done one quote so far, but a lot of people ask about them. I do not push them or rely on them for income. But if someone wanted one, I figure why not help them out.

However, when they talk about leaving their home to their kids, and I ask if they have any other funds or policies that they have to leave to their kids...a nice transition to life insurance.

 

[inreverse]

Hud/FHA requirements allow only a small referral fee for advisors.
Acoording to FHA guidlines, mortgage originators are to be employed full time in the mortgage industry. Not a place for a "jack of all trades, master of none"

 

[Mr. Bill]

Not all reverse mortgages are HUD/FHA - has anyone done a "jumbo style" one?

 

[Charpress]

The only difference is zip codes dictate how much you can get (in terms of lending limit on property).

Ok, I'm frankly lost on that one. The only difference in zip codes is how much you can get? Isn't that like saying the "only" difference between investment A and investment B is how much you can make? In most inquiries I get about RMs, the first question is "How much can I get?"

Midwestbroker: what was the result of the quote you did? Did the people like what was presented?

Further on the original question about Senior American Funding: I visited their Web site and left a contact message. They responded within ten minutes and mainly wanted to know where I was located. I sent them the information they requested. That was three days ago and I have not heard zip since. That kind of confirms further to me something about negative locations.

I think in the future when people ask me about reverse mortgages I will tell them something like "Sure, I'd be happy to look into that for you. However, in this part of the country you will likely get less than half of your equity value to work with. Are you still interested?"

 

[MAPDJim]

Ok, I'm frankly lost on that one. The only difference in zip codes is how much you can get? Isn't that like saying the "only" difference between investment A and investment B is how much you can make? In most inquiries I get about RMs, the first question is "How much can I get?"

Midwestbroker: what was the result of the quote you did? Did the people like what was presented?

Further on the original question about Senior American Funding: I visited their Web site and left a contact message. They responded within ten minutes and mainly wanted to know where I was located. I sent them the information they requested. That was three days ago and I have not heard zip since. That kind of confirms further to me something about negative locations.

I think in the future when people ask me about reverse mortgages I will tell them something like "Sure, I'd be happy to look into that for you. However, in this part of the country you will likely get less than half of your equity value to work with. Are you still interested?"

I'm not sure you really are getting this but here goes. Each county has a lending limit. Like Hartford County in CT has a $303,000 lending limit. Even if your home appraises at $350,000 they use $303,000 as the amount your loan is based on.

The lowest in CT I believe is Windham County at $200,000. Not exactly the best area for real estate hence the low limit.

In terms of how much one gets the rest is determined by age...you keep refering to less than 50%. There is no such loan. Even at 62 it is a bit over 50%. At 70, the average age of people with reverse mortgages (or there abouts), you're looking at 60% or better.

 

[Charpress]

Oh, I get it.

I think everyone reading this thread gets it.

One more time: if a $300,000 house is capped at $200,000 in a certain county (or zip code), and a person is getting 50% of $200,000 not 50% of $300,000, is he not getting less on his reverse mortgage than someone in a county or zip code that does not cap his house below it's value? The person in the capped zip code is not going to be happy when you tell him he is going to net 50% of $200,000 rather than 50% of $300,000 as he would have reasonably expected. If this is not an example of someone getting "less" than half, I just don't what else can be said.

Any agent wanting to get into reverse mortgages needs to understand that just because the based on age rate might happen to be 50%, 60% or whatever, that does not mean the person is going to ever see 50% or 60% of the value of their house. It is very much going to depend on the arbitrary cap for a particular area. When I say arbitrary, all zip codes locally are capped very low even in very expensive areas. I assume it is because of the storm hazard in general or Katrina in particular (just a guess). Any agent who wants to sell reverse mortgages needs to take this into account before they piss of a potential client by telling them that their $600,000 house is only going to net them $206,000 with a reverse mortgage.