On Friday, October 2, One Reverse Mortgage CEO Richard Mandell appeared on the Opportunity Detroit show on local radio station WJR to chat about reverse mortgages. Both local and national listeners were able to catch the interview on WJR’s website. Here are a few highlights from the show.
To kick off the interview, Mandell first explained what a reverse mortgage is and how it works. He began by comparing a reverse mortgage to a traditional mortgage.
“You borrow money based off the equity in your home, and the loan comes due when you are no longer living in the house. A couple of the bigger differences [between a reverse mortgage and a traditional mortgage]… are that you’ve got to be 62 or older to qualify for one…and that there are no monthly mortgage payments required.*”
After discussing a few reasons why someone may or may not make monthly payments on their reverse mortgage, the show’s host asked, “What would you say, Richard, would be the biggest misconceptions about reverse mortgages?”
Mandell listed two: That the bank owns your home and that the loan is one of “last resort” – specifically for people who are desperate. He was quick to dismiss both claims.
“Just like a traditional mortgage, you remain the owner of your home. You keep the title of it…And the people who probably benefit the most from a reverse mortgage are those who have a solid financial picture and might want to plan for the future. More and more people are using a reverse mortgage as a part of their retirement planning.”
Throughout the interview, Mandell also discussed such topics as loan repayment, heirs, improvements to the program, protections for non-borrowing spouses, and benefits.
To listen to the whole interview, click here.
*Homeowner is still responsible for taxes, insurance and property maintenance.