More commonplace than ever reverse mortgages are making their way into the senior community. Maybe it's famous spokesmen or basic financial trouble that expedites the process.



The reverse mortgage is an exceptable and real financial problem solver if it is used in the right circumstances.

However, it does not come without reasons to choose other options. Many customers ask me, "Is the reverse mortgage okay for me. Am I making the right choice?"

I'm always a little taken back when they ask me this question. I mean, afterall, I make money only when the loan goes through my company. If I weren't an honest guy I may be inclined to promote my best interests.

However, I'm a pretty honest cowboy and I answer back, "How long do you plan on staying in the home?" This is the most important thing to know.

I want to know because short reverse mortgages should be used only in dire emergencies. The cost of getting the loan for a short period is very high due to the closing costs involved.

Since I do make money when a loan closes I prefer them to indicate they will be in the home until death. As the loan goes on through the years it becomes less and less expensive annually to the borrower.

Regardless of each individual's unique situation the basic rule of thumb is to be in the home at least three years.

Living in the house for a term shorter than 3 yrs makes the loan quite pricey. I would strongly look at any and all other financial options in this case.

Another important thing to consider is weighing income against the financial issue the reverse mortgage may solve.

Incomes vary greatly. Fixed incomes, by nature, can't change to necessarily meet and beat some large or long-term financial obstacles. On the other hand if the hurdle is short term perhaps it can be worked out by some other means.

Here is your typical reverse mortgage customer... He plans on staying in the home at 3 years or longer. His income is fixed and can't change to meet his financial needs. The reverse mortgage makes sense for this man.