Reverse mortgage

Are you going to live there for the rest of your life? If the answer to that question is yes...

And again, I may get shit for this one, but I think reverse mortgages make some sense as you get older and older because they do allow you to pull equity out of your house in a way that will provide you with the income that you need to continue to live there and live well.

Well, the products, once again, are much better than they used to be.

They've been standardized.

So here's the way this works.

The reverse mortgage lender will look closely at her financial obligations, including any loan she's co-signed for.

So that means with the co-signing, she is legally responsible for that debt, even if her daughter is making your sister's making the payments.

If her daughter misses payments or defaults, it obviously will show up on your mother's credit report and affect her eligibility or the amount she can borrow.

The HECM, the reverse mortgage, is based on her age, her home value, and financial assessment, which is credit, income, and ability to meet ongoing obligations.

So if that co-signed loan raises her debt to income ratio or shows a negative credit history, it could reduce the available loan amount or require a set aside of funds to cover property taxes and insurance.

But if her credit remains solid, her daughter's current on the loan, it probably will not disqualify her, even though they will look at it and take it into account.

We're obviously here to talk about the reverse mortgage market.

We see volumes continue to take our, I should say, drastically rise at this point.

There's been huge growth in reverse mortgages.

But from your perspective, you're obviously the expert here.

Maybe talk about what we've seen from the reverse space in general and how things have trended here a quarter of the way into the 21st century.

So education has gone a long way as more and more individuals pursue alternate ways to finance retirement.

We're seeing home equity becoming part of that conversation.

And it's not just part of the conversation relative to reverse mortgages.

Oh, yeah.

With something called reverse mortgages.

That's where it all started.

All that type of stuff.

Every Thursday, we are so honored to have our good buddy Harlan Akula on from Movement Mortgage.

He is the reverse mortgage director, also the author of a terrific book called Home Equity and Reverse Mortgages, The Cinderella of the Baby Boomer Retirement.

By the way, you can get a copy of that book and get more information about reverse mortgages.

at movement.com slash Starnes.

That's movement.com slash Starnes.

It's even in the movie, It's a Wonderful Life that we watch at Christmas time where the evil banker is taking people's houses away from them and kicking them out.

And so everybody perceives that the safest thing to do is to pay off your house, which was very true back in that time period.

But when reverse mortgages came into play in 1988 under Reagan, the whole sense of rules changed at that point.

Let's call him Jim.

He'd already talked to four other mortgage people before me about his reverse mortgage quotes.

Funny enough, he actually told me he asked AI who the best reverse mortgage professional was to work with.

And apparently it suggested me.

So thank you, AI, helping.

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For those of you who don't know me, I'm Christina Harms, certified reverse mortgage professional.