The Wall Street Journal Right Again, About the Reverse Mortgage Loan
by Jeffrey L. Bangerter
September 12th, 2008
There is an excellent article in The Wall Street Journal that points out that if you stick with a Government Insured Home Equity Conversion mortgage (HECM) type of reverse mortgage then you have no risk of the lender going out of business and you no longer receiving your payments from the bank.
In fact the payments would then start coming from HUD if your lender went out of business.
The article does a great job of pointing out that a reverse mortgage loan “can help older homeowners with mortgage payments, home maintenance, property taxes, among other expenses.”
You could of course also use the money for something you want instead of just needs; you could take a dream vacation, get a new car or just provide yourself a financial cushion.
The article also makes reference to the Lehman Brother bankruptcy and how it may affect proprietary products also known as jumbo reverse mortgage loans.
The expert says for the moment there will be no change; the moment was short lived as we now have only one lender left offering the jumbo reverse mortgage loan program.
A few months ago we had five lenders offering the jumbo proprietary reverse mortgage.
What I have seen with my many years in the business is that waiting rarely provides a benefit, most often the borrower gets less the longer they wait to start, so if you are thinking of getting a reverse mortgage you should do it now.
Get a Free Quote From Me at Right of This Page...