“There are significant advantages in making payments toward HECM loan balances that are not well known. Many homeowners are too intrigued by the fact that HECMs don’t REQUIRE a payment. Unfortunately, they miss a great opportunity to maximize some advantages of a HECM.” – Understanding Reverse Why would homeowners voluntarily make payments? The reverse mortgage, […]
“Quite possibly the most amazing feature of the adjustable rate HECM product is the line of credit (LOC) and its ability to grow. It is only available on the adjustable rate products, and it is unique in the world of finance. It is also the primary reason Reverse Mortgages are useful in financial planning.” – […]
“HECM for Purchase began with the passage of the Housing and Economic Recovery Act of 2008. Prior to this legislation, if a homeowner in retirement wanted to relocate, qualifying for the new home often proved difficult. They would have to be eligible to purchase a home though traditional means, establish their residency in the home, […]
The proper definition of the non-recourse feature is “FHA guarantees that the borrower will not owe more than the home is worth at the time it is sold.” This should be comforting to every homeowner and their heirs. They can be assured that if a homeowner lives a very long time, or if property values […]
On a recent flight, the passenger next to me asked, “What do you do?” I have begun to enjoy seeing the reactions when I reply, “I educate others on the proper use of reverse mortgages.” Predictably, she replied, “I sure hope I never need one of those.” THAT reaction is precisely why I wrote UNDERSTANDING […]
