Proprietary products and Home Equity Conversion Mortgages are bringing companies at a crossroads when their clients qualify for both products. It can be quite decipher which option is the best for your client but it is not impossible.
A new report from Reverse Mortgage Daily aims to help make the decision a bit easier with some insight from Christina Harmes, assistant manager of the C2 Reverse division of C2 Financial Corp in San Diego, California.
"If they are a younger reverse borrower, have a large mortgage to pay off and really would prefer a low fixed rate they will often choose a HECM," said Harmes, according to the report.
"In situations like planning for the cost of future care, the HECM is the most often-chosen option as they may want a tenure payment or the growth feature of the HECM’s line of credit."
There is also the idea of presenting these options to borrowers in "the right way." Harmes said clients will often ask her for her opinion. When giving her clients an answer, she told RMD that she tries not to think about it personally. She does not think in terms of her paycheck.
To learn more about these tips on presenting jumbo and HECM products to your clients, click on the image above.