Connecticut's Hardest Working Lender
Interview with John Luddy
Reverse Mortgage Specialist
Reverse Mortgage Specialist
Recently we sat down with our resident Reverse Mortgage Specialist, John Luddy, and asked him to tell us some of the concerns that his clients have. To make it more realistic, we wrote them the way he hears them and answers them.
These are questions and answers you won't find on any other site. John has been specializing in reverse mortgage loans for over ten years.
We often hear that people are afraid of a reverse mortgage because, in their words, "the bank will take my house".
How do you respond when you hear that from a client?
John's Response:
When I'm sitting with a client or discussing reverse mortgages over the phone, the very first thing I tell them is that "you always own your home".
With a Reverse Mortgage, you are not transferring your home, you are not selling your home, and the bank never takes your home.
You are free to live in your own home for as long as you can. Repayment of the borrowed funds occurs only after you permanently leave the home.
What are the typical reasons people take a reverse mortgage?
John's Response:
Five years ago our typical borrower was a retiree who just simply needed more monthly income to help maintain their home and pay their taxes. In today's economy I’m not sure we have the typical borrower. It seems that each borrower has their own specific reason for wanting to take a reverse mortgage.
We still see folks that need extra monthly cash but we are also seeing folks behind in their property taxes, their present mortgage, paying off credit card debt or perhaps helping their children, who are suffering through a financial crisis. Each borrower has their own reason and today everyone's circumstances are different.
How would you describe your typical applicant?
John's Response:
As stated in the last question I’m not sure I have a typical applicant.
Each applicant is unique with specific needs.
That's why it's so important to spend a lot of time getting to know what's going on in our client’s lives so that we can address their specific needs.
How will a reverse mortgage affect my other benefits?
John's Response:
Because the proceeds from a reverse mortgage are not considered income, generally speaking, there should be no affect on other benefits like Social Security or energy assistance.
Is the money from my reverse mortgage taxable ?
John's Response:
No, the proceeds from your reverse mortgage are not considered income so that they are not subject to federal or state tax.
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