Secrets to a Reverse Mortgage

Use Someone You Can Trust

The first, and most important tip, is to know who you are dealing with to get your reverse mortgage.  As we have all read, there were many unsavory types of mortgage originators involved in the “subprime” lending industry.  With the collapse of that industry, many of these originators are now trying to sell reverse mortgages.  Typically these folks have gotten into the business in the last 3-5 years and are just looking to make a quick buck.

Beware of out of state originators, some of whom are not licensed in Alabama.  You have little recourse if you encounter problems these companies.  A reliable originator will be a member of the National Reverse Mortgage Lenders Association (NRMLA) which has its own rigorous standard of ethics.

Reverse Mortgages are a great help for many seniors, but like anything else, it doesn’t always turn out that way if a homeowner has the misfortune to deal with someone who doesn’t have the highest ethical standards. 

McGowin-King has successfully closed more reverse mortgage than anyone in Alabama and it has been in the reverse mortgage business longer than anyone in the State.  McGowin-King’s continued success is due to its reputation for honest and competent work that it has earned over the last 13 years.  The best thing is that it does not cost any more to use the best.   Due to McGowin-King’s experience, they can close your loan more quickly and for less money than others can.

Beware of the 1-800 Numbers

Avoid getting drawn in to the television advertisements (those 1-800 number ads) offering a “free video”.  These ads seem enticing, after all, who doesn’t want something for free?  But you know the old saying: “nothing in life is free”?  That applies to these ads.  When a senior calls the 1-800 number, they are asked for some personal information: name, birth date, address, financial information, etc.  This information is then sold to telemarketing types who then try to sell the senior a number of products.  The companies behind these 1-800 ads do not do any background check on who they are giving your information to.  And to make matters worse, those parties can re-sell your personal information to whomever they choose.

As Alabama’s most experienced reverse mortgage broker, McGowin-King has worked with lots of seniors who have called and requested the free video, and most of them complain about being “bombarded” by telemarketing calls and unwanted mail solicitations.  All the information in these videos is available in a customized format from McGowin-King.

Borrower Satisfaction

Surveys by FHA and AARP returned a surprising result.  Reverse mortgage borrowers express satisfaction with their reverse mortgage at an 80-90% rate.  It is rare for 8 or 9 people out of 10 agree on anything! 

Exciting New Programs 

There are several innovative new programs that FHA has introduced in the recent past.

• HECM Saver – this loan program can have the lowest closing costs of any FHA loan.  Many seniors are using this program as a payment-free alternative to a home equity line.
• HECM for Purchase – this program allows borrowers to use a reverse mortgage to purchase a home without ever having to make a monthly payment.  Many seniors are using the Purchase program to downsize into a more livable home.