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…

Pros and Cons of a HECM Reverse Mortgage

Pros and Cons of a Reverse Mortgage

Like any financial product, there are some pros and cons of a reverse mortgage that can make it a great option for some seniors and a less than great option for others. A HECM reverse mortgage isn’t necessarily the perfect solution for everybody, but for those that it is, it can be a fantastic option. Whether or not it makes sense for you depends on your financial goals and situation. Before … Read More…

What One Couple Did to Get a Reverse Mortgage Was Pretty Crazy (Or Was It?)

What One Couple Did Reverse Mortgage

Accountants and financial advisers beware, this case study might freak you out a bit. What if I said that a couple chose to drain their $80,000 IRA to get a reverse mortgage? Say what?? Gut an IRA to get a reverse mortgage? Were they nuts? It might sound completely crazy, but these clients did just that – and they did it happily. I’ll show you why. First, let’s set the stage. This … 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…

Newly Increased HECM Lending Limit to Take Effect in January

Consider a Reverse Mortgage to Cut Taxes in Retirement

Many seniors will soon have significantly more cash available through a HECM reverse mortgage. As of January 1, 2019, the HECM lending limit will be increased by FHA to $726,525 from the current limit of $679,650. FHA periodically updates the lending limit to reflect prevailing home values across the nation. Home values have increased substantially since the financial crisis of 2008. FHA has responded by steadily increasing the lending limits … Read More…

One Couple’s Tragic Situation And Why I Couldn’t Help Them

One Couple's Tragic Situation

What do you think it’s like to be in your late eighties, in declining health, without a dime in the bank, and facing foreclosure? I had the chance to find out when I chatted with a woman in this exact situation. Folks, I’ll tell you, it isn’t fun. This woman, who we’ll call Norma, was 88, if I remember correctly. Her husband, who we’ll call Fred, was just a few years … Read More…

Are You Flushing Your Retirement Income Down the Drain?

Flushing Your Income Down the Drain

A lot of retired seniors are flushing their hard-earned income and assets down the drain. Are you one of them? If you’re like many seniors, you might have refinanced your mortgage in the past few years to take advantage of low interest rates. You may also have chosen a fixed 30-year mortgage because of the low payments. That’s not a bad choice, but here’s the kicker: when does that loan pay … 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…

How to Turn Home Equity Into a Liquid Tax-Free Retirement Account That Grows

FHA Changes to the Reverse Mortgage

What if I said there was a way to turn a large portion of your home’s equity into a liquid and tax-free retirement account that grows larger over time? Would you believe me? If not, I wouldn’t hold it against you! What I want to show you is a financial strategy for retirement that many people, including financial advisers, are completely unaware of. It’s 100% legitimate and is being used right now by … Read More…

How Does a Reverse Mortgage Work When You Die?

How does a reverse mortgage work when you die?

So, how does a reverse mortgage work when you die? This is a very common question from seniors considering a reverse mortgage. Many seniors want to know what happens to their home after they pass away and who gets the equity in the home. Others are concerned about the reverse mortgage creating hassles and headaches for their heirs.  Fortunately, the reverse mortgage is designed not only with seniors in mind, but … Read More…