Available June 1, 2020 with a very special limited offer to follow: The Reverse Mortgage Revealed. Click here to learn more!

Is a Reverse Mortgage a Ripoff?

Is a Reverse Mortgage a Ripoff?

So, is a reverse mortgage a ripoff? Well, that depends! It depends on your definition of a ripoff, whether or not a reverse mortgage makes sense for your financial goals and situation, and whether or not you get a fair deal from a reverse mortgage lender. I can’t say for sure if a reverse mortgage is a ripoff for you, but I can provide information about the program and let … Read More…

Are Reverse Mortgages a Good Deal? When Do They NOT Make Sense?

Are Reverse Mortgages a Good Deal?

Are reverse mortgages a good deal? Well, that depends! It depends on whether or not having access to your home’s equity in retirement would be beneficial. Many reverse mortgage borrowers use the reverse mortgage to eliminate existing mortgage payments, pay off other debts, supplement retirement income, add to available retirement assets, do home improvements, etc. Would any of those options be beneficial for you? Would they perhaps even be life-changing? … Read More…

FHA Rolls Out New Changes to the HECM Reverse Mortgage

FHA Changes to the Reverse Mortgage

If there’s one constant in the reverse mortgage industry, it’s change. FHA has once again made some significant tweaks to the HECM program to make it work better and be more stable for seniors. This latest round of changes is a bit of a mixed bag; there’s both positives and negatives for reverse mortgage borrowers, depending on how you look at things. IMIP Is Now a Flat Rate Before the changes … Read More…

How Much Does Reverse Mortgage Counseling Cost?

How Much Does Reverse Mortgage Counseling Cost?

If you’re applying for a HECM reverse mortgage, a session with a HUD-licensed counselor is the first step before your lender can begin processing your application.The reverse mortgage counseling cost can vary from one counselor to the next (or there may be no cost at all). The purpose of counseling is to help ensure the applicant understands the program, is reasonably competent to make financial decisions, and isn’t being taken … Read More…

Can a Reverse Mortgage Be Foreclosed On?

Can a Reverse Mortgage Be Foreclosed On?

Can a reverse mortgage be foreclosed on? Definitely! Like any other home loan, the bank will pursue foreclosure if the borrower fails to meet their obligations under the loan. Interestingly, foreclosure is also a normal part of the program that applies even if the borrower meets their obligations perfectly. Sound strange? Read on and I’ll explain. Before we discuss when can a reverse mortgage be foreclosed on, let’s first cover a … Read More…

What Happens to a Reverse Mortgage After Death?

Reverse Mortgage After Death

So, what happens to a reverse mortgage after death? This is one of the most common questions I hear from seniors who are considering getting a reverse mortgage. They’re concerned about what happens to a reverse mortgage after death and what it means for their home and heirs. Other seniors are worried that the reverse mortgage will create a big mess for their heirs to clean up. Fortunately, the reverse … Read More…

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…