Trusted Advice from Family & Friends

LoanWell America wants each of its potential borrowers to weigh the pros and cons carefully by discussing their situation with friends, families and professionals who are trustworthy and want the best for them - today and tomorrow.

Evaluate!

The first step in evaluating whether a reverse mortgage would be the right decision is to determine why it is being considered. As a chosen advisor you need to determine what underlying factors are driving the need for more money and what the options are at your disposal for lessening the current financial stress.

So, before advising your loved one or client to obtain a reverse mortgage, consider the situation from emotional, medical and financial needs. Our experience with our senior clients has taught us that all financial decisions, especially those concerning their home, are very emotional. It is important to consider the need to...

• stay independent;
• stay near friends and family;
• stay in familiar surroundings; and
• maintain quality of life

...while balancing this with medical and financial issues. Remember, taking a reverse mortgage now reduces the ability of the home’s equity to provide income in the future to either the borrower’s or their estate, even though the borrower or the estate will never owe more than the home is worth regardless of the amount of the reverse mortgage.

Options to consider!

And while the decision to take a reverse mortgage is more often the decision of choice by concerned advisors, other options should be considered.

• Can the senior depend on additional financial support from family?
• Can the senior postpone retirement?
• Can the senior work part time?
• Can the senior sell other assets?
• Can the senior obtain a home equity loan or a line of credit and afford the payments?
• Can the senior get a roommate or tenant?
• Can the senior sell his home and move to a less costly home and area?
• Can the senior qualify for different low to moderate income loans?
  

Another option might be better in these circumstances!

While generally the reverse mortgage is a wonderful idea, it could be a bad idea when:

• the borrower will only be in the home a short time;
• the proceeds are only a short term fix to a financial situation;
• proceeds are used to fund other financial products that add fees and make it impossible to access the funds; and/or
• provide other family members or friends with cash from the proceeds without regard to the future needs of the borrower.
  

The Reverse Mortgage Benefits!

Once you have decided that a reverse mortgage could be the ideal way for your loved one or client to benefit from the wise investment they made in real estate perhaps decades ago, you will be pleased to know the following information about reverse mortgages.

Get money without moving. - A reverse mortgage can create a new source of tax-free money without having to sell their home. In fact, they can stay in the home they love for as long as they would like.

Financial independence. - A reverse mortgage allows seniors to tap into money they've earned in the form of home equity, and avoid having to depend on children or relatives for financial assistance.

Keep title to the house. - The borrower retains full title to their home and have no risk of losing the home to the reverse mortgage lender. And no matter what happens to the housing market, no one can ever owe more than the value of their home when it is sold.

Proven safe. - Over 350,000 Americans have already benefited from reverse mortgages. The fact is that HECM reverse mortgages are government-insured loans and many safeguards are in place to protect seniors from unethical lending practices.

Repayment options. - If the last-remaining borrower passes away and the heir(s) want to keep the home, they simply pay off the reverse mortgage loan balance in full. The heir(s) can refinance or use other assets to pay off the reverse mortgage. If the heirs are not interested in keeping the home, it can be sold to repay the loan. Any money left over goes to the estate to be shared according to your borrowers' last wishes.