Issue 16.13
It amazes me how many times I get asked this question and how much confusion is still in the public opinion today. Please let me lead this article by stating Reverse Mortgages today are insured and backed by the U.S. Government and or Secretary of Housing.
When a client purchases a home today with the popular HECM loan for purchase or uses the loan to eliminate their current mortgage payment for life or whatever the reason for utilizing this loan, that client will sign a note and a deed not only with us as the lender in Cherry Creek Mortgage but with the Secretary of Housing and Urban Development.
The loan is then secured, not only by our commitment with the note and deed with us as the lender, but the same language in a second deed and note that is secured by the Secretary of Housing and Urban Development – that simply further supports and secures you as a client and us as a lender.
In short, a Reverse Mortgage Loan, that is government insured, is one of the most secured loans and protective agreements of all loans being made today without any ifs, ands, or butts.
I had a client that was purchasing a home and or building a home this month and one of the top investment advisors in our county – if not the western states, raised a question about the safety of the reverse mortgage. And, this investment advisor made a comment that the loan is only as safe as the insurance company behind the loan! What? The insurance company behind the loan is the U.S. Government. The same U.S. Government that backs our treasury bonds and is known throughout the world as one of the safest investment in the world today.
In a world of economic turbulence in Europe, Asia and here in the States, the U.S. Treasury is still attracting a large investment appetite simply because of the safe haven that our bonds backed by the U.S. Government still provide.
This is also the main reason that these loans are so very popular today. So, if you are purchasing a home today and or trying to eliminate a current mortgage payment for life and if you and your spouse are both over 62 then you need to look at this loan – period. In addition, this very important decision and or contract and or loan note and deed are not backed by the safety of an insurance company by name, but by arguably the safest institution still today – in the U.S. Government.
For more information on this loan and whether or not this loan is the right choice under your situation, please give us a call. Cherry Creek Mortgage is the only direct HUD authorized local Lender today that funds and underwrites our own FHA insured mortgages in Washington County. But, whether or not this loan is right for you depends on many situations, so please contact your licensed mortgage banker or financial advisor with any long term financial decisions. Until next month.
Brandon Hansen is a Senior Mortgage Banker,Registered Investment Advisor Representative for
Cherry Creek Mortgage / Investment Advisors International. He can be contacted at 435-668-2840 / 435-773-4164. www.seniorbankingtoday.com