The 3 Biggest Reasons Not to Get a Reverse Mortgage

Reasons Not to Get a Reverse Mortgage

There’s no question a HECM reverse mortgage is a great financial tool. However, any good reverse mortgage professional will freely acknowledge that it’s not the right solution for absolutely everybody. There are some scenarios where a reverse mortgage might not make sense. Before we dig into some reasons not to get a reverse mortgage, let’s first go over what a reverse mortgage actually is. There’s a lot of misinformation out there, so I … Read More…

Retiring Without a Mortgage is a Total Bummer! Here’s Why (And It’s Probably Not What You Think).

Bummer Retire Without Mortgage

Would you think I was crazy if I said retiring without a mortgage is a total bummer? After all, who in their right mind wouldn’t love to retire with no mortgage payment? OK, so maybe I’m exaggerating a bit. Maybe it’s not a total bummer, but it’s a bummer nevertheless – and not for the reason you may think! First of all, let me say it’s very commendable to pay … Read More…

What Does the Ideal HECM Reverse Mortgage Candidate Look Like?

How the Smiths Used the HECM Reverse Mortgage

The HECM reverse mortgage is a fantastic home loan product, but it’s not the right solution for everybody (nor does everybody qualify, anyway). What does the ideal reverse mortgage candidate look like? Who is the program most ideally suited for? I’ve helped many seniors get reverse mortgages over the years and I’ve concluded that the ideal candidate fits one of two profiles.  But before I dig into what an ideal … Read More…

The Top 12 Reverse Mortgage Myths and Misconceptions

Reverse Mortgage Myths

The reverse mortgage is a hugely misunderstood mortgage product. Even financially savvy people like attorneys, CPAs, and financial advisors often have it wrong about reverse mortgages. I’ve helped hundreds of seniors over the years get reverse mortgages and I think I’ve heard just about every myth and misconception there is. I’d like to address the most common ones in this article. Note that the following refers to the home equity … Read More…

The Lurking Danger That Can Swamp Even a Solid Retirement Plan (and How You Can Avoid It)

Caution HECM Reverse Mortgage Sequence Risk

If you’re not familiar with the term sequence risk, you definitely should be. It’s a potentially devastating lurking danger that can completely swamp an otherwise solid retirement plan. Brian Davis wrote a great article over at Bigger Pockets on this topic a while back and I’d like to build on what he wrote. If you haven’t read his article yet, you may want to now. I’ll hang tight until you get … Read More…

What is the Downside of Reverse Mortgages?

Downside of Reverse Mortgages

I’m sure you’ve seen the commercials on TV with famous pitchmen extolling the virtues of reverse mortgages. They make reverse mortgages sound pretty good, right? So, what is the downside of reverse mortgages? What are some possible pitfalls you need to look out for? The HECM reverse mortgage is a great financial tool, but it’s not necessarily perfect for every person and financial situation. Like anything else, it has it’s pros … Read More…

How Much Equity is Needed for a Reverse Mortgage?

How Much Equity is Needed for a Reverse Mortgage?

So, how much equity is needed for a reverse mortgage exactly? Great question! And the answer is: it depends! There’s no set rule that applies to everybody. How much equity is needed for a reverse mortgage depends on how much you can qualify for with a reverse mortgage. And how much you qualify for depends on numerous factors, including home value, age of the youngest borrower, current interest rates, what … Read More…

Can a Reverse Mortgage Go Into Foreclosure?

Reverse Mortgage Foreclosures up 646%

Can a reverse mortgage go into foreclosure? Absolutely! Like any other home loan, you must meet your program obligations or the bank could foreclose on the home. What’s unique about a reverse mortgage is that foreclosure is also a normal part of the program that applies even if the borrower does everything they’re supposed to. Intrigued? I’ll explain. Before we discuss when a reverse mortgage can go into foreclosure, let’s first cover … Read More…

Yikes! Reverse Mortgage Foreclosures Up 646% in 2016, But is it What it Seems?

Reverse Mortgage Foreclosures up 646%

When you hear (or read) the word “foreclosure”, what kind of images does that conjure up in your mind? Probably some pretty negative stuff, right? You’re probably thinking something along the lines of families experiencing hard times, falling behind on mortgage payments, and being forced out of their home as it’s being sold on the courthouse steps. Am I pretty close? Now what if I said that, according to a … Read More…

The Financial Iceberg You Definitely Want to Avoid in Retirement

HELOC Ticking Time Bomb

I’ve worked with a lot of retired seniors over the years who had no clue they were headed dead-on for a financial iceberg. Many signed up for this iceberg on their own, but others did so at the recommendations of well-meaning CPAs, financial advisers, attorneys, and family members. So, what is this financial iceberg? It’s called a HELOC, or home equity line of credit. Many seniors take out HELOCs to … Read More…