What is a reverse mortgage? The answer to this commonly asked question might be different than you would think. Well, in our opinion, that is. A reverse mortgage, as most of you are well aware, may be used to help fund a senior homeowner’s longevity, eliminate their mortgage payment and provide additional retirement income. As loan originators and reverse mortgage specialists, we’re sure this comes as no surprise to any of you, yet the question remains:
What is a reverse mortgage, really? The answer: A reverse mortgage is peace of mind, plain and simple.
Peace of mind may also be associated with happiness, contentment, comfort, calmness, pleasure, satisfaction and serenity. Think about any client you have originated a reverse mortgage for and why they chose to enter into the program. Did they wish to have more comfort in retirement? Were they searching for a sense of contentment and happiness that was not achievable on their fixed income? Were they looking to eliminate the stress and anxiety created by a rise in their cost of living and a stagnant Social Security income? If so, what they were really looking for is peace of mind.
The idea that a reverse mortgage is ultimately peace of mind was never more relevant than it was just a few weeks ago. We met with a senior couple who had recently attended one of our reverse mortgage seminars to complete their application for a HECM loan. While speaking with them on their patio, sipping coffee and getting to know them better, the wife turned to us and said, “Wow.
This means we might actually lie down at night with peace of mind again.” In speaking with them more and, most importantly, listening to them, we discovered that they both had been in and out of multiple doctors’ offices due to sleep apnea brought on from the stress of the combination of losing a portion of their retirement account and the husband’s pension a few years ago. Luckily, they were still in a position where they were getting by and could probably fund their lives for about 10 more years. What they weren’t sure of is what would happen when that money ran out. This was one of those situations where the passion for what we do really took over. As we sat on their patio, discussing how a reverse mortgage could bring them the peace of mind they so yearned for and fund their longevity past the 10-year point, they both looked at each other and tears streamed down their faces. It was hard for us to hold back our emotions as we witnessed the relief and jubilation our clients felt. Sharing these types of moments with our clients and knowing that we can offer a product that can truly impact their quality of life is what provides us with passion and love for what we do. How many careers are there where you can really say that you change people’s lives, allow them to recapture their dreams and provide them peace of mind?
There are a couple of key points that we hope everyone who reads this article will take away. Everyone looks at peace of mind differently. What happiness, contentment, satisfaction and serenity means to one homeowner, might mean something different to another. First, take the time to listen to them and find out what brings them peace of mind. Second, it’s important for reverse specialists to build relationships and learn their borrowers’ concerns and goals. Once those goals are established, show them how a reverse mortgage may be used to accomplish them. All too often, loan originators get caught up in rates, fees, margins and lingo that will intimidate and confuse most clients. While it is imperative to discuss all options and terms with your client, you should first start by discussing what means the most to them. What are their goals? Not just their financial goals, but what would they like to accomplish and achieve? What are their concerns? Most of all, how is their quality of life? The third and last point is about being passionate. Passion is something that you cannot fake. You either have it or you don’t. If you are truly passionate, then these steps will come naturally. Discuss your clients’ family, grandkids, life concerns, and especially their goals. Be inspired by your clients and their stories. Discuss what brings them peace of mind, then work with them to customize a plan using a reverse mortgage to achieve those goals.
