HECM Reverse Mortgages & Financial Assessment

In the spring of 2015, the most significant change in the history of Home Equity Conversion Mortgage (HECM) reverse mortgages went into effect. For the first time since the inception of the program, the homeowner’s ability and willingness to manage his/her financial obligations have become part of the qualifying process for a HECM. These and other

Read More »

Time for Advisors to get in the Game

Whether you are a financial planner, advisor, wealth manager, attorney or CPA it is time for you to get off the sidelines and participate in the Home Equity Conversion Mortgage (HECM) discussion. Don’t know what a HECM is? (How embarrassing.) It is a federally insured reverse mortgage. Your clients are looking into these in increasing numbers they

Read More »

The Housing Inheritance Myth and Reverse Mortgages

The reason I call it the “Housing Inheritance Myth” for people considering reverse mortgages is that the gap between desire and reality is so wide. Yes, myth may be a bit strong, but bear with me a bit while I try and explain myself. Passing one’s home along to one’s children is part of the American Dream of home ownership. We inherited that dream

Read More »

Colt .45

I have no sympathy for my fellow Boomers who cruise eBay in search of mementos of their past. “Leave it lie and move ahead”, is my motto. “Let the past be the passed.” But that was before my wonderful sister gave me the surprise gift of a toy Colt .45 that was my favorite childhood gun. It is magnificent. It is perfect. I am a hypocrite. She said t

Read More »

Worst Reverse Mortgage Mistakes (Part 2)

Even tougher is the reality of hard math, with a reverse mortgage or without. This can lead to the second biggest mistake people make with reverse mortgages: they stay too long in a situation they can’t afford. When a reverse mortgage is used not just to pay off an existing mortgage or to buy a new house, it makes a portion of the home equity avail

Read More »

Worst Reverse Mortgage Mistakes (Part One)

While there are lots of errors you can make in getting a reverse mortgage, one stands out among the worst: that is deciding to wait until you are older and have greater financial needs before setting up a reverse mortgage. I’ve heard it all too often, “We can manage a few more years before the money runs out. Then we will call you.” Now, don’t get

Read More »

Understanding a HECM Reverse Mortgage as an Unstructured Loan

Let us begin with understanding that there are no institutions loaning money in a reliable and predictable manner for free. When money is borrowed, it must be paid back and some amount of interest will be due. For the borrower, what matters is how much interest, when payments are required, and at what point the entire debt must be repaid. Ideally,

Read More »

Reverse Mortgage Calculator – What’s my Problem?

Reverse Mortgage Calculator – What’s my Problem?
Reverse Mortgage Calculator – What’s my Problem?

It’s been an issue since the decision not to include a reverse mortgage calculator on my first website over 10 years ago. “Everyone is looking for a reverse mortgage calculator” was the argument or “Every other reverse mortgage website has a calculator. You have to have one.” A decade later, I still don’t have a calculator on my website.   But

Read More »

HELOC Payment Shock Coming?

HELOC Payment Shock Coming?
HELOC Payment Shock Coming?

So, what’s a HELOC and why are things changing with them?  Well, a HELOC is a Home Equity Line of Credit.  This is an equity line, with an adjustable rate.  Usually, only interest payments are required during the first 10 years of the note.  After that, they reset to include principal payments sufficient to retire all the debt in the remaining year

Read More »

Aging Bonus

Aging Bonus
Aging Bonus

OK. There is a lot of negative stuff about getting older. For the most part, it seems the only positive is the “senior discount” and that comes with a down side. Few things hurt more than claiming to be 65 early and not being carded for proof of age. Still, there are bonuses to being older. Benefits, if you will. The first one is that you have alre

Read More »