What are the dangers of reverse mortgage financing? Is a reverse mortgage risky? If so, what are the risks? Questions like these come up from time to time and I always find them puzzling. I don’t see a reverse mortgage as risky. It can be a poor fit for some people, but calling it “risky” or “dangerous” is a stretch, in my opinion. A traditional mortgage can be far riskier … Read More…
Imagine it’s Christmas Day and you’re sitting on the sofa in the living room of your son’s house. A beautiful Christmas tree covered with ornaments and bright lights stands in the corner. The turkey baking in the oven fills the air with warm and delicious smells. Your favorite people in the whole world – your children and grandchildren – are sitting around the room and laughing and chatting and enjoying … Read More…
Does your financial plan include “retirement insurance”? I’m guessing you’ve never heard of such a thing, right? The term is sometimes used to refer to Social Security or insurance products that target retirees, but that’s not what I’m referring to here. There is no insurance product called “retirement insurance”, but there is a strategy that can serve as a “retirement insurance” of sorts. When used prudently as part of a … Read More…
The HECM reverse mortgage line of credit is a great financial tool for many seniors. If you owe little to nothing on your home, the HECM line of credit can turn a portion of your home’s value into a tax-free retirement “account” that will grow larger over time. Let me show you how with a HECM line of credit example. But before we do that, let’s first cover a few … Read More…
What if I told you there was one simple question that could net you thousands (or maybe tens of thousands) more from a reverse mortgage. Would you want to learn more? If so, read on! Now, before I fill you in on what this question is, let me cover a few basics first. If you want to be a savvy reverse mortgage shopper, it’s essential that you understand how the … Read More…
How much equity do you have to have to qualify for a reverse mortgage? Great question! The answer is: it depends! There’s no set amount that everybody qualifies for, so there’s no set amount of equity you need to make a reverse mortgage workable. How much you qualify for depends on several factors, including your home’s value, age of the youngest borrower, current interest rates, the program you select (variable-rate … Read More…
Looking for an easy-to-use FHA reverse mortgage calculator? You’re definitely in the right place! We upgraded our FHA reverse mortgage calculators recently and they’re even better than ever. One calculator estimates proceeds for a traditional reverse mortgage (for a home you already own and live in) and the other calculates your down payment for a purchase reverse mortgage. Both calculators are fast and easy to use and don’t require any … Read More…
Growth of principal limit is a key feature of a reverse mortgage, but few people really understand how it works. I’m going to get a little technical here, but hang with me. If you grasp what I’m about to cover, you’ll have a better understanding of the reverse mortgage than many industry professionals. Growth of principal limit really is the key machinery that makes a reverse mortgage work. Before we … Read More…
Did you know that we have a reverse mortgage purchase calculator? If not, don’t feel bad! We rolled it out a few months ago, so it’s still pretty new. Our reverse mortgage purchase calculator is a great way to estimate how much of a down payment you’ll need to purchase a home with a HECM reverse mortgage. Unlike most reverse mortgage calculators online, ours is free and simple to use … Read More…
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…