What Does the Reverse Loan Counselor Do?
By Juhani Tontti
When The U.S.Government allowed the launch of the reverse loan program, the idea was to arrange the source of money for the senior citizens age 62 or over and to let them to use a part of their home equities and to turn that into monthly cash money. The legislators understood, that these products will be a little bit complicated to the seniors, so it was important to organize the reverse loan counselor network to guide the seniors and to give them detailed information about their cases. It is important to note, that these federal counselors are specialized into the senior financial guidance. This means that they can give guidance also about other things, than the reverse mortgages.
1. The Reverse Loan Is A Long Term Commitment.
When a senior takes the reverse loan he will commit himself for many years. The reverse loan agreement is different in that respect, that no monthly payments will be paid. This leads us to think, that this is not so serious thing, because the payments will happen after many years.
However all the costs plus the interests rates will be piled year after year and they will eat the equity from our homes. A part of this will be compensated by the home price increases, because a borrower will stay as an owner of the home. Some choices, like the interest rate choice, have big influences on the outcome.
2. The Counselor Is Independent.
The reverse loan counselors are all independent federal counselors and not in the services of the private banks or other companies. This means, that they are free to guide a senior about the best choices and to warn them about unfair companies.
3. How To Take Contact?
It is best to get the contact information from the net. After you have the address and the phone number, you can use both. However, it is recommended to go and meet the counselor in person, because this topic is so full of small details.
4. Make A Question List.
By the way the counselor meeting is compulsory. A senior can get the best results, if he honestly prepares himself for the meeting. That happens by discussing with other people and especially with the relatives. If a senior knows somebody, who has taken the reverse mortgage loan, this contact is really valuable.
5. Is The Reverse Loan Best For Your Needs?
As said, the reverse loan is a long term, serious commitment. It is not meant for the cruising holidays, but for purposes like the increased medical bills, home repairs etc. However, the lender cannot say for which purpose a senior will use the money, that is totally his own decision.
Juhani Tontti, B.Sc., Marketing. The reverse mortgages are complicated products and that is the simple reason, why it is wise to meet the reverse mortgage counselor in the early phase of the thinking process.
Photo by Jens karlsson
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