Over the last 30+ years, I have been providing 3 types of financing to clients… Residential Financing, Commercial Financing and Reverse Mortgage Financing.

In that time, I have seen all 3 improve and evolve but the one category that has improved the most is Reverse Mortgages.  In the past, when a customer applied for one, they were really throwing the dice, so to speak, on what they would end up paying rate and fee wise, what they were told from the lender and the worse part, what they signed often relinquishing the rights of the property to the lender…Yes you heard right.  If the borrower passed away, the lender kept the house (if your parent or loved one has one from 10 years ago or longer, have them review their promissory note for such language and if applicable, refi out of it!).

Today, Reverse Mortgages are a Different Animal, so home owners 55 and above in age can enjoy their home, age in place, even if they don’t have the income to afford their home, just as long as they have enough equity in their home.  In addition, 10 years ago, it was commonplace, to see closing costs on reverses equal to $10k or 20k (or higher) and today on a Jumbo reverse they can cost $1000 to a max of $9000 depending on the rate and program chosen (most of ours are around $4k to $6k).  Lastly, today the home is yours when you sell, not the lender.

Before a client can even start a reverse mortgage application they must sit down with a qualified individual like myself and review their options, pros and cons and then take a mandatory (online/over the phone) class.   Then after a 7 business day cooling off period are they able to proceed with the application.  Lastly, while they have improved exponentially, there are some things to still consider.

You’re retired! The stock market just had a major correction (q1 and q2 of 2022) and your wondering if you have enough money to live on, long term?  Often times a Reverse Mortgage is exactly what you need as it eliminates:

– Mortgage Payments
– Monthly Medical Costs
– Credit Cards and Installment Debts

So…What’s Wrong with a Reverse Mortgage?

A Few Things…

– A Band-Aid…Really?  They can be Band-Aid to a more pressing issue in relationship to one’s Burn Rate or Lifestyle!
– Expensive…They can be Expensive, especially if you don’t spend the time to educate yourself on them and compare one option to another!
– They Can Take a While to Close. Don’t Wait until you Run Out of Money to Get one, Plan Ahead!

For more information, please contact me.  Thanks.

Rob McCarthy

Senior Mortgage Advisor

www.101Loan.com

408-377-4123 o  650-465-8957 c   408-608-1921 f

101 Loan – 6090 Hellyer Avenue #100, San Jose, CA 95138

CA DRE #01165697  NMLS #121019

Products/Services/Accolades:

  1. Residential Financing for Purchases and Refinances on 1 to 4 unit properties.
  2. Reverse Mortgage Financing to include Conforming, Jumbo, HELOC Jumbo’s.
  3. Commercial & SBA Financing to include Multifamily, Office, Retail and Light Industrial.
  4. Access to over 50 banks with over 200 “Five Star” Reviews on Yelp, Google, Facebook and Linkedin.

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