Ask the Expert: Reverse Mortgages
Reverse Mortgage lenders regularly target seniors with ads on TV and the Internet explaining how their products use home equity to provide cash flow by paying off existing debt, for a future credit line, or by distributing a monthly supplemental income that can be used for any purpose including paying for in-home care services. Regardless of how funds are used, extra cash flow enables seniors to live in their homes longer while enjoying a better lifestyle.
Right at Home Knoxville wants seniors to stay in place as long as possible, but many times financial strains become too much which causes seniors to leave the home they love and feel comfortable in.
We wanted to find out more about reverse mortgage loans so we met with Bert Burgett, a Reverse Mortgage Specialist with TNBANK, the only bank in East Tennessee that offers reverse mortgage loans.
Bert Burgett, Reverse Mortgage Specialist, TNBANK
Joy Wilson, Owner, Right at Home Knoxville: Bert, thanks for taking time to share information about Reverse Mortgages and how TNBANK can provide a way to help seniors afford to stay in their home longer. Can you tell us more?
Bert Burgett: Thanks Joy. Helping seniors is very rewarding which is a primary reason that I am a Reverse Mortgage Specialist with TNBANK. I help seniors age 62+ make smart financial decisions so they can age in place in the home they feel comfortable in. Many seniors have trusted me to find the loan that best matches their circumstances and need. Besides helping many East Tennesseans, I have advised seniors in California, Louisiana, Oregon, Texas, and Virginia. So, I can help your clients and any senior they know in any state. During my career, I have served customers in all 50 states so am very comfortable working with anyone in this great country.
Joy: What types of loans are available?
Bert: The HUD-designed and FHA-insured HECM loan is the best fit for most borrowers regardless of the state of residence. HECM stands for Home Equity Conversion Mortgage. Many states have approved additional loan products that provide extra flexibility for seniors with homes valued from $725,000 to $5,000,000, however, the Tennessee legislature has not yet approved such products.
Joy: Will the senior still own their home?
Bert: This is an excellent question Joy. We address the myths in our brochure. One of the biggest myths of a reverse mortgage loan is that the borrower no longer owns their home and that when the borrower decides to sell or dies, all remaining equity goes to the bank. I’m not sure where this myth started but can tell you that it is totally false. A HECM or other reverse mortgage loan is very similar to a standard mortgage loan that most of us have had during our lifetime. Both types involve a lien against the property. When we decide to move and sell or we die and the home is sold by an executor or the estate, the loan is paid off at closing and remaining equity goes to the owner, their heirs, or to the estate. This is clearly stated in the brochure and my presentation slides.
Joy: That sounds very interesting and a great option for Knoxville area seniors. If someone wants to learn more, how can they get in touch with you?
Bert: When you or someone you know would like to learn more about a Reverse Mortgage Loan, please dial 865-298-1609 or send me an email. I will provide articles, a brochure, and a copy of presentation slides from my speaking engagements to senior groups, Rotary Clubs, etc. Also, check out our website for more information about Reverse Mortgages.
Right at Home Knoxville West not only wants to provide quality in home care for your senior loved one, but we also want to help make aging in place easier by providing timely, useful tips.
