Hi, I just saw Robert Wagner on television reading a script about reverse mortgages. Robert Wagner does not know anything about reverse mortgages, but I do.
These words are very close to a direct quote made by lender Greg Frost on a KRQE 13 news telecast out of Albuquerque, New Mexico. I do understand Greg’s frustration with Fonzie type washed out actors putting their name on a product with which they have no familiarity or expertise. Ironically, Mr Frost attempted to convert the fading name of Robert Wagner into a few more sales leads. A standard advertising ploy is to associate yourself with some other advertiser who has already committed the time, money, and other resources to raising public awareness of their service or product.
Reverse mortgage peddlers are quite fond of using an actor with fading name recognition to dupe the elderly into borrowing against their home equity which is effectively what a reverse mortgage is.
A couple of things the founder of Frost Mortgage Banking Group did not mention in commercial:
- The maximum origination fee legally allowed is 2% of the first $200,000 of the home’s value and 1% of the remaining value. These two conditions can not exceed $6000. The average fee is around $2700 in return for the annuity type payments the bank will issue to you monthly.
- Your children or heirs will likely not have a home to move into when you kick the bucket, decease, expire, die, croak. Also you still have to pay property tax and homeowners insurance while you are receiving monthly payments and your equity is decreasing.
If you can live or maybe even die with these disadvantages, then give Frost Mortgage Banking Group your business.