Knowledge about Reverse Mortgages in PA and NJ

This past Wednesday, I was giving an educational presentation at a Library in Southampton, PA. While I was just explaining the basics of how a reverse mortgage works and that they do come in fixed rates of 5.56% and adjustables starting at about 3% (as of today), a woman yells from the back of the room "no they don't".

Wanting to be sure I heard her correctly, I said "I'm sorry ma'am, did you have a question?". She responded with, "No I don't have a question, I am just saying that reverse mortgages don't come in a fixed rate, I know, I looked into one."

So I found myself in quite a hard situation as I am just about the least confrontational person on the planet, but if I didn't say anything there would be a room full of people thinking that I just lied to them - which I would certainly never do.

So, I politely said, "Ladies and Gentlemen, if you care to review the rate options available with a reverse mortgage, please feel free to contact me after the presentation while I am here and we can head upstairs to the computer and review the program guidelines on the internet together."

Still, after all these years of doing everything I possibly can to educate Seniors and their families, it seems as though the vast majority of individuals don't have the basics of a reverse mortgage down. Now, based on the media coverage, I don't blame them for not knowing the basics as the media spins the worst possible angle and will certainly hesitate to say even "but they are lifesavers for some". That wouldn't make a very good story now would it....

I think it is natural to be afraid of new things - or perhaps skeptical is a better word. However, if certain "individuals" (like those mentioned above) took the time to simple educate themselves (or pick ask for full info), maybe people who actually NEED a reverse mortgage won't be as hesitant.

Here is the truth of it all: Reverse Mortgages are great for those individuals who have found themselves in their home late in retirement and have no cash. Reverse Mortgages may be right for someone who is considering the purchase of a 2nd home or other luxury item such as a boat (as the financing terms with a reverse will always be better). That is it...plain and simple....