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Jerry Said:

Seniors - people 62 yrs old or those with parents of that age - What do you think about reverse mortgages?

We Answered:

I'm not a big fan. Unless I'm wrong - it's just a fancy name for a loan.

Marc Said:

Any suggestions on marketing reverse mortgages to seniors.?

We Answered:

I got the ''reverse mortgage'' last year. I like it no more house payments. I got about 35000.00 bucks. I had a lot of fun for a while. I know 2 or 3 guys that are thinking about signing up. It is a big business

Sally Said:

Is it wrong trying to get seniors in California to do reverse mortages?

We Answered:

If it was wrong it would be illegal

What you are doing is completely legit...and it gives the old folks some mad money...and helps some of them out financially to boot.

Miguel Said:

How can I sell reverse mortgages to seniors?

We Answered:

Reverse mortgages, in the right situation, are a wonderful tool for seniors to unlock dead equity in their homes to be able to enjoy their lives in their golden years. I'll use my mother as an example.

She's 86 and on a fixed income of $1400/ month. She owns her home free and clear. It's now worth about 110k.

What would you want my mom to have? A home that's worth 100k that she can live in until she dies (if she lives to be 100 that's only 14 more years) and then leave behind for me and my brother to fight over and have to go through probate with?

Or, a home she can live in until she dies, along with an additional $700/ month in income or 50-80k in cash now to do with as she wishes or a combination of both? What would you want for YOUR mother?

Seems like a no brainer to me. Use the link below to take you to a reverse mortgage calculator to determine how much someone could get.

I don't know about the rest of you folks, but I would rather see my mother be able to enjoy the last years of her life by getting money out of her home rather than live a frugal life never being able to do anything extra just so she can leave all that equity behind for the courts and my family to squabble over. That's why my mom has and is enjoying her reverse mortgage.

Harold Said:

In 2003 what did FHA Reverse Mortgages pay in interest on unused available cash?

We Answered:

Bag-Ten,

The reverse mortgage equity reserves or lines of credits grow at the same rate as the interest being charged against the borrower including the FHA mortgage insurance payment of .5% a year. So to figure out what someones line of credit growth rate was at any time you have to know what the current interest rate is being charged. FHA reverse mortgage interest rates are tied to the 1 year Treasury Bill plus 1.5%. In 03 the average T-Bill was around 1.25%. So to figure out what the return was in 03 for a reverse mortgage line of credit you would figure 1.25%(T-Bill) + 1.5%(Interest rate) + .5 (FHA mortgage Insurance) = 3.25% Growth rate for the Line of Credit. This return fluctuates accordingly so as the rate goes up it goes up or just the opposite. For example today that growth rate is 7.22%.

You can look at the history of the T-Bill here and calculate what the return was at any time with the above formula.

http://www.erate.com/1_year_t-bill_index…



I hope that helps. This is all I specialize in so if you have any other questions please feel free to contact me.

Thanks,
Brandon

bburns@griffinloans.com

Lori Said:

As a senior homeowner, mortgage is paid, how can I find out about reverse mortgages?

We Answered:

I would be glad to mail you some information. I am a loan officer with Griffin Financial mortgage. We are the largest Reverse Mortgage broker in the Southwest but we are able to do loans within 22 states. I have a lot of information that I can provide you so feel free to contact me and I will put it in the mail. You can reach me at bburns@griffinloans.com
Try starting here. This is the best source on the internet.
http://www.aarp.org/money/revmort/