Are Reverse Mortgages Bad?

Why a Reverse Mortgage May Not Be Available in the Future

Are reverse mortgages bad? Well, maybe. Or, maybe not. It depends! What is the reverse mortgage being used for? What is the financial situation and goals of the person seeking the reverse mortgage? Like any financial product, the reverse mortgage isn’t inherently good or bad. It’s simply a financial tool. It’s “goodness” or “badness” is determined by how it’s used. If used for the wrong purpose, then yes, it’s probably … Read More…

Is a Reverse Mortgage a Good Idea?

Is a Reverse Mortgage a Good Idea?

Is a reverse mortgage a good idea? Maybe, maybe not. It depends! What is the purpose of looking into a reverse mortgage? What are your goals and financial situation? Like any financial product, the reverse mortgage isn’t inherently good or bad. It’s simply a financial tool. It’s “goodness” or “badness” is determined by how it’s used. If used for the wrong purpose, then it’s probably not a good idea to … Read More…

Case Study: How the Smiths Upgraded Their Lifestyle Without Draining An IRA or Increasing Their Taxes

How the Smiths Used the HECM Reverse Mortgage

Mr. and Mrs. Smith, both 66, are retired and live in the state of Virginia. Mr. Smith had a very successful career as an aerospace engineer and Mrs. Smith had her own bookkeeping business. They made good money over the years, stayed out of debt, saved diligently, and managed to retire with a paid off house and $1 million in a traditional IRA. By all accounts, the Smiths have done very … Read More…

How Many Reverse Mortgages Are Done Each Year?

How Many Reverse Mortgages?

The reverse mortgage industry is a relatively small niche of the broader mortgage industry. Though many mortgage lenders offer HECM reverse mortgages (the dominant product in the industry), relatively few have been able to build large and consistent businesses around the product. About 50% of all reverse mortgages written in 2016 were by the top 5 lenders. So, how many reverse mortgages are done each year in the United States? Volume … Read More…

What Does HECM Stand For?

What Does HECM Stand For?

You’ve probably seen the television commercials with Henry Winkler or Tom Selleck, right?  So you might be asking, what does HECM stand for anyway? The acronym HECM (often pronounced heck-um by industry insiders) stands for home equity conversion mortgage, which is the most common reverse mortgage product available in the United States today. If anybody you know recently obtained a reverse mortgage, it’s a good bet it was a HECM. … Read More…

INFOGRAPHIC: Is a HECM or HELOC Better for Your Retirement Funding Needs?

Share This Infographic If you would like to share this infographic on your site, feel free! Simply copy the code below and provide attribution back to this site. Please include attribution to MyHECM.com with this graphic. HECM vs HELOC: Which Makes More Sense In Retirement? A HELOC is a good financial tool, but only for a right purpose. A HELOC can be a ticking time bomb for seniors who try to … Read More…

Case Study: How One Couple Wiped Out Debt Payments, Extended the Life of their Savings, and Eliminated Financial Stress

Credit Cards

Fred and Gina Mason, both 79, live in Reno, Nevada and have been retired for a number of years. Fred was an insurance agent for over thirty years and Gina worked as a school teacher for a local private school. They enjoy spending time with their grandchildren and taking the occasional trip, but their budget is tight and they don’t have a lot of extra money at the end of … Read More…

Can You Get Out of a Reverse Mortgage?

Can you get out of a reverse mortgage?

Can you get out of a reverse mortgage any time you like? The short answer is yes! However, there are a few things you may want to consider before doing so. Unless you’re selling your home, there probably aren’t too many scenarios where it would make sense to pay off a reverse mortgage early. But before I get into that, let me first go over what a HECM reverse mortgage is. There … Read More…

4 Reasons a Reverse Mortgage May Not Be Available to You in the Future

Why a Reverse Mortgage May Not Be Available in the Future

If you can benefit from a reverse mortgage today, it might be a good idea to take advantage of it today – even if you feel like you don’t need the money right now. A reverse mortgage can serve as an additional financial “insurance policy” that protects you against life’s “what ifs”. I can’t tell you how many clients I’ve talked to who have been hit out of the blue with big unexpected expenses … Read More…

Marketwatch: Consider a Reverse Mortgage to Cut Taxes in Retirement

Consider a Reverse Mortgage to Cut Taxes in Retirement

Though the HECM reverse mortgage has been around for a long time, it’s only in more recent years that reputable media sources and financial advisers have started to recognize the potential benefits of a reverse mortgage for many retirees. No longer is it a financial tool only for the needy and desperate (though it can often help such people), it also can be very beneficial for people who are more well off. … Read More…