Home For the Reverse Mortage and Education for Seniors in Texas

How a Reverse Mortgage Provides the Solution to Your Financial Stress?

Are you aware that you have equity in your home, you can use for any reason, without ever losing title to your home? Yes, you can use the equity to be paid directly to you, TAX FREE, for the rest of your life. That's right! For the rest of your life you can have an income stream that will never be stopped or impeded.

To your advantage, you may also customize the Texas reverse mortgage. You have the option to take monthly payments for life, take a lump sum large payment up front, or take a simple equity line which you may draw upon, at your will, earning interest on any unused amount.

It's now your choice. When we speak, we will further discuss the best option for you. The point we emphasize is that any financial stress you may be feeling is about to be greatly reduced.

The goal now is to become educated on your options and how our reverse mortgage will benefit you. Click here to read about the process. If you haven't already received your free copy of the "Reverse Mortgage Guide", get it now by clicking HERE. Remember, this may potentially save you thousands of dollars!

Still Have Questions?

Call Today for Free Analysis!
(866) 594-3521

OR
Send an email to:

 

Articles by Matt Borkowski

May 18, 2009: Important Question to Ask Your Texas Reverse Mortgage Lender

Is the lender a mortgage broker or a mortgage bank? You should ask if your lender brokers reverse mortgages or is a direct lender. In most cases you are better served by using a mortgage broker. This goes against common folklore, but it is true none the less.

People believe by going direct they will get a better deal than by going through a middle man or broker. This is absolutely not true. The fees and interest rates are equal in either case. Where a broker shines is by matching your particular situation to a particular lender. No lender can be all things to all people. This is why it is good to have options. A broker will have multiple lending options for you. Depending on your situation one lender may be far better than another.

It can go as deep as your situation not fitting within the guidelines of one lender and them rejecting the loan. Whereas the next lender is just fine with your situation and funds the loan as it would with any other Texas reverse mortgage.

I had an instance this month with a customer. She owned the home for over 20 years and only recently moved in. The lender we started with was not the one we used to close and fund her loan. The first lender required her to live in the home for the most recent 12 months. The other lender required one month in the home. We went with the second lender. She received the same closing costs and interest rate as the first.

May 7, 2009: Why is the Reverse Mortgage Safe for Your Heirs?

After we go to the other side what negative or positive legacy will we leave for our kids? This is an important question as it pertains to the reverse mortgage. As you know the real benefit of the reverse mortgage is you can solve a financial issue using your home's equity and be payment-free for the rest of your life. Of course the down side is the interest you would be paying is accumulating on the loan.

Probably the most asked question is, "What if more is owed one day than the home is worth? What will my heirs be responsible for paying back to the mortgage company?"

FHA insured reverse mortgages are known as "non-recourse" loans. This means the borrower or the borrower's heirs are only responsible for paying the mortgage company the sale price minus the closing costs to sell the property. Let's say the loan is $120,000. If the home sold for $100,000 and $7,000 was the cost to sell the home, the borrower or heirs owe the mortgage company $93,000. The remaining $27,000 is FHA and the mortgage company's problem.

April 3, 2009: Power of Attorney Complicated in Reverse Mortgage World

Up until about six months ago using a power of attorney was a viable option to get a reverse mortgage in Texas. It made sense. The POA is a very necessary tool, particularly for seniors. Think about how many seniors are incapacitated in one manner or another. You certainly have a group that is mentally incapacitated through Alzheimers or dementia. Another group is physically incapacitated and actually need someone else to sign paperwork.

Today you will be hard pressed to find a title insurer which will insure title with a power of attorney in place for the reverse mortgage. They will do it for a traditional forward mortgage but reverse mortgages are basically out. The title insurers are seeing too many lawsuits resulting from aledged fraudulent activity between family members. It's becoming too expensive for title insurers to conduct this kind of business.

It is an unfortunate thing. Some of the neediest people are now being shut out from using the benefits of the reverse mortgage because a few are abusing the system. Fortunately some exceptions may be made. For example those with physical incapacitations may find some cover. These folks are mentally capable, but not physically. With some form of approval from this group title insurers are open to allowing them to use a power of attorney.

March 3, 2009: New Reverse Mortgage Limits $625,500

The new 800 billion dollar economic stimulus plan has a provision for reverse mortgages effectively raising the limits loan limits up to $625,500. The old limits are not so old. They were raised from $200,000 up to $417,000 in November.

The important thing to remember about loan limits is that a lender determines how much money it will actually lend the borrower based upon the value of the home. Under the former loan limits of $417,000 even if a home was worth over $417,000 the lender would only give the home credit for $417,000. The end result was the borrower could only realize between $200,000 and $325,000. Now borrowers capping out the limit of $625,500 in value will realize as much as $425,000.

This will not affect most people for the obvious reason that most people don't have homes valued above $417,000. However, those that do with a need for a reverse mortgage have a windfall on their hands. With over 80% of my clients using a reverse mortgage to pay off a current forward mortgage this could be a life saver for some, especially those looking into the California reverse mortgage for high priced homes. Imagine the payment associated with $300,000 or $400,000 mortgage. A reverse mortgage can come in, pay off that forward mortgage and allow the homeowner to live in the home, payment free for life.

Additionally, with fixed rates as low as they've been in years the reverse mortgage will have a limited affect on the borrowers equity.

February 3, 2009: Reverse Mortgage Rush is On

In Texas we're seeing a huge number of people inquiring into the reverse mortgage right now.

The question is why. Everyone in real estate knows that that, with a new year, comes resolutions and decisions. So, most real estate folks start off strong.

This is true but I've been involved with mortgages for many years and I can't remember ever seeing this kind of activity.

I believe multiple factors are coming together to create this rush.


The first is indeed the new year. It has this effect and in with the following factors amplifies the demand.
Another important factor is the sagging stock market. Many seniors were relying on the stock market as a safe place to put their retirement funds.

After taking a 30% hit many older homeowners are looking to the reverse mortgage in Texas as means to create additional financial safety as well as open up funds for possible future investment.

A point to not be overlooked is many seniors have looked into the Texas reverse mortgage but haven't pulled the trigger. They are mulling it over and many take longer to make a careful decision.

Well, we can all see home values dropping with likely more to come. Since the amount of money a senior can borrow is dependent on the appraised value this reality is scaring a few to take action.

The last factor is the number of folks turning 62. We all know about this trend and it is finally coming to fruition.

January 14, 2009: HUD Counseling Serves as Excellent Stopgap

As a homeowner the equity in the home is the fruit of originally purchasing the home and then making all of those rather unwelcome payments.

With no other savings the equity can be tapped into as a lever to solve financial issues in Texas. The reverse mortgage was originally developed with this in mind.

It is not without its shortcomings and is not the proper tool for all situations.

As a possible conflict of interest it is marketed by people, like me, who make money only when the borrower closes on a reverse mortgage. They don't necessarily make money by talking the senior out of it.

Most loan officers will tell you the absolute truth and give a fair assessment based upon the facts at hand.

However, a certain contingent exists in the reverse mortgage industry, as it does in any industry, comprised of unethical individuals willing to stretch the truth and facts.

I formerly worked in the copier business and my company (which shall remain nameless) had a saying for the sales people. "Whatever it takes." They really meant it too. Do whatever you have to do to get the business.

Fortunately the federally mandated HUD counseling effectively thwarts these practices.

The law requires borrowers to counsel with a neutral third party HUD approved reverse mortgage counselor prior to moving forward with the process of a reverse mortgage.

This is a major stopgap for many who could otherwise solve the financial obstacle in some other more effective manner. If the counselor is worth his salt he should be able to spot a bad deal and give the would-be borrower better advice.

This is one way to reduce the casualties in the reverse mortgage business.