Why do borrowers choose to take a reverse mortgage?
Some want an income boost, others to engage in repairs or upgrade to their home, while still others simply want to indulge themselves and enjoy life more fully while they’re able. Meanwhile, the industry is finding that an increasing number of people are using these mortgages as a way to fund long-term healthcare in retirement.
Our featured author, Chris Clow at Reverse Mortgage Daily, says that originators are the ones to ask if you want to know how the industry is developing – they’re its “front-lines soldiers.” They work directly with clients from the first meeting through the application and approval process and often beyond. They know what customers want and how they view their prospects, particularly in retirement. Meanwhile, it’s usually the originators who must develop the solutions that match the client’s particular requirements.
People are starting to grasp the essential need to provide for long-term healthcare in retirement, something nearly every retiree will need, whether provided in a professional facility or at home. While many are interested in the idea of using a reverse mortgage to fund LT care, experts note that even after detailed discussions, they’re sometimes reticent to go finalize the deal.
Based on the examples presented in our linked feature, we see no basic shortcoming in the reverse mortgage product that’s inhibiting people from pulling the trigger. Rather, it’s a matter of each case being individual: sometimes, other products and approaches are more appropriate. There’s nothing fundamentally wrong or risky about reverse mortgages, which serve exceptionally well when the circumstances are right, particularly for clients who want to receive any eventual LT care in their own homes.
For more information, please read:
RMD Report: Long Term Care Focus Increases in Reverse Mortgage Market | Reverse Mortgage Daily