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Hecm

Do HECM Reverse Mortgages Work For Owners of Expensive Homes?

Jack M. Guttentag | Posted 08.22.2016 | Business
Jack M. Guttentag

As a Federally insured program under FHA, the HECM reverse mortgage program is not designed to help the wealthy. In calculating maximum draw amounts, ...

How to Unleash the HECM Reverse Mortgage Market - Part 1

Jack M. Guttentag | Posted 07.11.2016 | Business
Jack M. Guttentag

The need for a robust reverse mortgage market is large and growing. At the end of 2015 there were about 24 million homeowners aged 65 and over, with t...

4 Reasons Retirees Should Consider An HECM Reverse Mortgage

Michael Lazar | Posted 06.08.2016 | Fifty
Michael Lazar

Just how prepared are you for retirement and do you really have enough savings set aside to make it comfortably through your golden years? While plann...

Does A Reverse Mortgage HECM Make Sense For You?

Michael Lazar | Posted 05.13.2016 | Fifty
Michael Lazar

Older Americans have many things to consider when entering retirement. Perhaps the most common worry is that you may not have enough funds to sustain ...

5 Ways a HECM Reverse Mortgage Can Ease the Retirement of Homeowners

Jack M. Guttentag | Posted 03.21.2016 | Business
Jack M. Guttentag

First Way: Use a HECM to Pay Off an Existing Mortgage Carrying a Monthly Payment Many homeowners today choose to retire, or are obliged to, before t...

Life Annuities and HECM Reverse Mortgages as Tools For Protecting Retirees

Jack M. Guttentag | Posted 01.20.2016 | Business
Jack M. Guttentag

My article last week ("How Retirees Can Avoid Running Out of Money: The Role of Longevity Annuities") discussed the longevity annuity as a tool for protecting retirees heavily dependent on a stock of financial assets against the risk of running out of money.

How to Select the HECM Reverse Mortgage Lender With the Best Deal

Jack M. Guttentag | Posted 11.02.2015 | Business
Jack M. Guttentag

It is possible for a senior to safely navigate the highly dysfunctional reverse mortgage market. Step one is to choose the combination of reverse mortgage features that best meets your needs. Step two is to find the lender offering the best deal on the particular HECM you have selected.

How to Select the Best Type of HECM Reverse Mortgage

Jack M. Guttentag | Posted 10.28.2015 | Business
Jack M. Guttentag

The HECM reverse mortgage is a beautifully designed financial instrument that can meet a wide variety of senior needs. Unfortunately, HECMs offer so many options that selecting the best option can be a challenge.

5 Reverse Mortgage Questions You Should Ask First

Michael Lazar | Posted 09.11.2015 | Fifty
Michael Lazar

Taking out any type of home loan is one of the biggest financial decisions that most people will make in their life. So when it comes to reverse mortgage questions, it's always helpful to prepare a list beforehand.

Top 10 Reasons a Reverse Mortgage Might Be Right For You

Michael Lazar | Posted 09.08.2015 | Fifty
Michael Lazar

With so many reasons to consider getting a reverse mortgage, it's always helpful to have a checklist. What follows are 10 popular reasons why people take out these home loans.

Introducing the Kosher HECM Reverse Mortgage

Jack M. Guttentag | Posted 09.06.2015 | Business
Jack M. Guttentag

This article summarizes the dysfunctional features of the existing non-kosher market, and describes the major features of the kosher version.

Are HECM Reverse Mortgages Overpriced?

Jack M. Guttentag | Posted 08.30.2015 | Money
Jack M. Guttentag

First, are seniors getting real value in exchange for the high fees? The answer in most cases is "no". Second, can a senior who knows the ropes avoid paying excessive fees? The answer in every case is "yes."

There Are Actually 3 Types of Reverse Mortgages

Michael Lazar | Posted 08.13.2016 | Fifty
Michael Lazar

If you are considering taking out a reverse mortgage home loan, there are three different types to consider. We'll give you the details so you can better decide which one is right for you.

Sunshine State Spotlight: Rise In Reverse Mortgages Set Example For The Rest Of The Country

Buck Wargo | Posted 08.07.2016 | Fifty
Buck Wargo

With the economy recovering from the Great Recession and home values rising in Florida, Donna Linton says all of this is paving the way for more people in her home state to turn to reverse mortgages, including those who want to use them to take their dream vacations.

The Tontine: A 17th Century Solution to a 21st Century Problem

Jack M. Guttentag | Posted 07.25.2016 | Business
Jack M. Guttentag

The tontine is an investment scheme where each of a group of participants pays a specified sum into a fund and receives a pro rata share of the income generated by the fund, but when a participant dies their share is divided among those remaining. As the number of participants dwindles, those remaining receive increasingly large distributions.

St. Louis Couple Uses HECM Mortgage To Buy Dream Home In Florida

Buck Wargo | Posted 06.26.2016 | Fifty
Buck Wargo

Andy and Beatrice Hollimon had endured Midwest winters for decades, and it was time to fulfill their dream of moving south.

Reflections on Mandatory Counseling

Jack M. Guttentag | Posted 06.13.2016 | Business
Jack M. Guttentag

I have written many articles on regulatory prohibitions and mandatory disclosures in the mortgage market, most of it critical, but this is my first look at mandatory counseling. Except for reverse mortgages, it has not been much used until recently.

Why Small Home Mortgage Loans Are Hard to Find

Jack M. Guttentag | Posted 05.18.2016 | Money
Jack M. Guttentag

Providing small mortgage loans at non-subsidized prices affordable to the borrower has always been a challenge. The core problem is that the high cost of originating and servicing a mortgage loan is no smaller for a small loan than for a large one, but there's more to it.

Reverse Mortgage Prices and Closing Costs: A Look at the Options

Jack M. Guttentag | Posted 06.25.2015 | Business
Jack M. Guttentag

Senior homeowners looking to shop the HECM reverse mortgage market for the best price, meaning the lowest interest rate and origination fee, have a major problem. Unlike the standard mortgage market where price data are available from many sources (including third party multi-lender sites), in the reverse mortgage market prices are hard to find.

After March 2, Reverse Mortgage Borrowers Will Have to Prove They Are Not Deadbeats

Jack M. Guttentag | Posted 03.27.2015 | Business
Jack M. Guttentag

Applicants with plenty of equity in their homes might find that the fully-funded Set-Aside imposes no burden on them at all, in which case the underwriting costs could be avoided. There is no reason why lenders and borrowers should not have that option.

Transitioning From a Standard Mortgage to a Reverse Mortgage

Jack M. Guttentag | Posted 03.01.2015 | Business
Jack M. Guttentag

In my father's generation, very few people still had a mortgage to pay when they reached retirement age. Now it is common. But retired homeowners may now have an option my father did not have.

To Avoid Outliving Your Money, Take a HECM Reverse Mortgage Before Interest Rates Rise

Jack M. Guttentag | Posted 02.11.2015 | Business
Jack M. Guttentag

This use of the HECM reverse mortgage program as a type of insurance policy employs the credit line feature of the program. The senior uses her borrowing power to draw the largest line available, and lets the line sit unused until she needs it.

Don't Expect Much From Unregulated Regulators

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

The seeds of this article were planted in my brain some 30-odd years ago, when I did a consulting project for HUD, for which they contracted to pay me...

Shoud Seniors Buying a House Do It With a Reverse Mortgage?

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

Many home purchasers are seniors. Some become homeowners for the first time, but most have been and want to remain homeowners. They just don't want to remain in their current house.

A New Challenge to the HECM Reverse Mortgage Program

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

The United States today faces a retirement funds crisis: a rapidly growing number of persons who are retiring without the financial capacity to support themselves during ever-increasing life spans.