Debt Consolidation Credit Counseling In Phoenix

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 flattered they trust me enough to ask the question. Don't forget I make money if they go forward with a reverse mortgage and zero if they don't. There may be a conflict of interest there somewhere.

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.

What I'm looking for is the customer to say, "when I leave it will be with tag on my toe." Now that's my kind of customer! The longer the loan goes on the less the loan costs the customer on an annualized basis.

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

To stay less than three years makes the loan very expensive, and I would recommend looking at other financial options first before the reverse mortgage.

Another point is to match the relationship of the borrower's income to the problem the customer is trying to remedy.

Is the financial trouble going to last through the year or will it be lifelong? Are incomes variable, such that the issue, be it short or long term, can be overcome? Are incomes fixed?

So, if the income will not meet the demands of the financial obstacle and the borrower intends to stay in the home for at least three years, and preferrably longer, the reverse mortgage is a viable and intelligent tool.