Reverse mortgages have gotten a bad rap, thanks to a few cheesy commercials many of us remember from the ‘80s, ‘90s and even today. Many featured “celebrity” spokespeople who “connected” with the older generation, thereby gaining their trust.
While I won’t say that reverse mortgages (or even traditional 30-year fixed mortgages, for that matter) are right for everyone, they can do a world of good for many aging Americans. They are also a wonderful way for you to diversify your product offerings, giving you a leg up on competition that doesn’t think outside the box.
Many adult children and families are deterred by the idea of a reverse mortgage because they’ve heard horror stories of senior citizens cashing out their house and then losing everything. It not only affects future inheritances, but when done incorrectly (or unwisely), irresponsible lenders can leave an ailing adult without a place to live – or money to support their care and longevity.
As a firm that cares about our borrowers, we know this can’t be further from the truth. It’s up to our trustworthy bankers, however, to express our genuine sentiments and intentions to seniors and their adult children.
If we’re being real, a reverse mortgage just makes sense in many cases. Unless a senior possesses a significant retirement account, pension, inheritance or diversified investment portfolio, chances are high their income will come from Social Security and whatever savings they’ve accrued once they’re no longer working. The fear of an illness, injury or the unknown can weigh heavily on seniors and their families, causing undue stress surrounding a financial burden that hasn’t even happened yet.
You may find more interest than you imagined in this offering once the old stigma is removed. In fact, 26.9 million households are currently eligible for a reverse mortgage – 97.7 percent of those households remain untapped, resulting in more than $5 trillion of overlooked senior equity.
Do yourself and the generations before you a favor. Take a few moments to brush up on this offering, reach out to your contacts who are either older Americans or have parents entering their Twilight years and see what you can do to help. A reverse mortgage can be incredibly beneficial to Boomer homeowners.