According to Forbes magazine, “Now is the time to refinance… Mortgage Interest rates stay near record lows heading into 2021,” Amy Dobson, Senior Contributor.
2020 was a year that reminded us all that anything can happen. Although it was a year fraught with tragedy and uncertainty, surprisingly, the circumstances opened doors to historically low mortgage rates. Many took advantage of this opportunity to increase their financial stability by refinancing with a typical fixed rate “Forward” Mortgage or alternately, a Reverse Mortgage.
According to Greg Mattern, Mortgage Advisor, and Holly Revenig, Certified Reverse Specialist, of Finance of America Mortgage, both “Forward” and Reverse Mortgages are viable refinance options, depending on the borrower’s financial and retirement objectives. “The key is to educate the borrowers about their available options. Ultimately, they decide which path will lead them to their financial goals.”
We spoke with two of Greg and Holly’s recent borrowers to help illustrate how customized the process should be, so that the borrower can determine whether it’s building equity or increasing liquidity that is in their best interest.
Gloria, a borrower from Mesa, participated in a Zoom call with Holly and Greg to analyze both mortgage scenarios last fall. “After considering my options, I chose a reverse mortgage. I liked the flexibility of choosing to make a monthly payment and the ability to use my home equity only if or when I needed it.” John Waggoner of AARP reminds seniors that “Ideally, you should be able to live off Social Security, a pension, and retirement savings when you retire. But you shouldn’t overlook your biggest asset: your home.”
After going through the same process, Al from Chandler opted for a conventional refinance. “I wanted to explore options that would allow me to lower my rate and take cash out for home improvements. Greg and Holly spent a great deal of time with me to make sure I was comfortable with my options.” Al was able to both decrease his monthly payment and make upgrades to his home.
Both borrowers appreciated that Greg and Holly presented both strategies. Holly and Greg’s unique partnership offers a chance for an honest assessment. Holly and Greg go on to say that “Our goal is to present viable options that will help give you peace of mind regarding the best way to approach your retirement.”