As a mortgage professional working only with reverse mortgage customers, I am constantly contacted with a myriad of different scenarios. Some are true potential customers, some should think of other options.

I certainly don't tell all of them how great the reverse mortgage is for them. It's simply not a great option for all of them.

If I were going to place a ranking on how good the reverse mortgage is for customers I'd say it would be bad, okay, good, and great. People fit into all ranking. Let's talk about great.

One of the most important things I like to cover are really two things: Closing costs and length of the mortgage. I want to know the lenght of time the client expects to live in the home.

So, this goes to the questions of the "cost of money". In other words how much is it going to cost this person or couple, over time, to get this loan to solve whatever financial issue they want to solve.

The answer I like best from them is "until i die". This is best as the true cost of the mortgage, on an annualized basis, goes down the longer a customer stays in the home.

At loan application you would receive, from you lender of choice, a disclosure outlining how the mortgage reduces in cost, on an annualized basis, the longer the mortgage lasts.

It will show various years down the line. You'll notice the further away you get from the day you close the cheaper it is.

Another perfect candidate is someone who simply can't make due on the income they have. Due to economic or health reasons they simply cannot do it on their income.

The fixed income customer actually makes up most reverse mortgages.

I'd say the final attribute of the perfect candidate is that of not having a vital interest in leaving a large inheritance to the kids. This group is thinking about the rest of their own lives rather than the rest of their kids lives.

Many have a mind set that they must leave something to the kids. It's vital to them. The reverse mortgage is a financial tool that allows a mortgage without paying monthly. Interest tacks on to the mortgage which doesn't normally give this group warm fuzzies.

So, we want 3 vital traits to come up with a perfect candidate: 1. Staying until death 2. Fixed income which doesn't cover their needs 3. The desire to use the equity of the home on their lives rather than their kid's lives.