As you are all aware there is always some negativity when you introduce the Reverse mortgage strategy to clients. I have considered this an opportunity to educate clients on this growing option and clarify the misconceptions about the product. Moving the conversation forward in this manner (noted below) has allowed me to have a “longer and educational” conversation with potential clients:
“ This is Mortgage product that acts like a HELOC and is designed exclusively for clients 55 and older.
Key differences from your standard HELOC is that you have the option to pay interest or not and your clients do not have to qualify under the new Stress test guidelines. Age and value of property are the key drives in determining loan amount.”
Our demographic likes THE concept of a HELOC over the idea of a Reverse Mortgage. We also like the idea of the ability to draw down the funds when needed and also to have the ability to make interest only payments monthly at their discretion.
Try it out when you are positioning the Reverse Mortgage Strategy with your next client. While there is more to your client qualification than outlined above at least you will have your clients attention when moving forward. Good luck and I have also attached some of the Mortgage and HELOC features below that form part of the CHIP terms and conditions.