Blind “Taste Test”; the Reverse Mortgage vs Traditional HELOC
The reverse mortgage continues to be one of the most misunderstood financial products in the market today. To prove this point, and demonstrate to many potential borrowers the benefits of a reverse mortgage, Reverse Mortgage Funding utilized a “Blind Taste Test.”
The “Blind Taste Test” was originally made popular by Pepsi, when it dared soda drinkers to see if they preferred their cola product to Coca-Colas by participating in a blind taste test. By drinking the two samples, but not knowing which was Pepsi or Coca-Cola, participants could choose the one they preferred, blindly.
For reverse mortgages, or the Home Equity Conversion Mortgage, doing a blind test seem like the perfect approach, as most borrowers are then introduced to the financial product, beforehand, and allowed to choose their favorite one before the “stigma” of the reverse mortgage is included.
The fact of the matter is, and despite many recent changes to the program, when a potential borrower hears “reverse mortgage,” most immediately shut down and refuse to hear the rest of the information. Even if they do hear it, all the negative reverse mortgage press is swirling around in their heads, preventing them from hearing the information with an unprejudiced mind.
In order to combat this stigma, RMF gathered a group of participants and presented all the facts of a reverse mortgage line of credit (LOC) and a traditional HELOC, without telling them which one was which. At the end of the presentation, participants could choose which product they preferred.
As noted in an article published by Reverse Mortgage Daily, when the participants were shown which product was a reverse mortgage LOC and which one was a traditional HELOC, many were surprised at, not only the similarities between both products, but how the reverse mortgage HELOC was better, in some ways.
One participant stated: “I wish I had known about this before I had taken out the home equity line of credit.” While another stated, “I haven’t heard yet any reason I shouldn’t pick this product.”
Most importantly, RMF aims to create more awareness about the benefits of the reverse mortgage so that future borrowers can make an informed decision.
Determining if a reverse mortgage is right for your retirement goals or a loved one’s goals is as easy or as hard as you would like it to be. Please let PS Financial Services walk you through the process and make easier for you and your family. Give us a call at (888) 845-6630 to speak to one of our brokers or email us at info@PSReverseMortgage.com.
Disclaimer: “PS Financial Services, LLC, uses RMF as their primary wholesale lender, so please contact PS Financial Services for more information and you will be able to use both companies at once.”
Phil Stevenson, CRMP, NMLS 365768
PS Financial Services, LLC, NMLS 968090
9480 SW 77 AVE Miami, FL 33156