Making Payments on a Reverse Mortgage

by Kent Kopen | Jul 24, 2017 |

Benefits |

 

Making optional payments on a reverse mortgage may be strategically wise. Academic research since 2012 suggests that the delayed and gradual use of a reverse line of credit can be extremely helpful in prolonging the longevity of an investment portfolio.*

Danger of a HELOC in Retirement

by Kent Kopen | Apr 26, 2017 |

Benefits, How loan works, Risks, FHA HECM |

 

Retirees are going to have to access some of the wealth trapped in their home.  The question is how?  Using a conventional HELOC (home equity line of credit) can be especially risky for retirees.

The Pros and Cons of a Reverse Mortgage

by Kent Kopen | May 06, 2016 |

Income, Benefits, How loan works, Risks |

If you’re trying to cut a board in half, a hammer is a terrible tool.  This analogy applies to most financial products or strategies – the pros and cons depend on the context.

Do Reverse Mortgages Make Sense

by Kent Kopen | Apr 13, 2016 |

Income, Benefits, Risks, FHA HECM |

One of the most frequent questions we hear is, “Do reverse mortgages make sense?” But that’s not where the conversation starts. Over the last 9 years I’ve seen a recurring pattern that goes like this: rejection, confusion, understanding, disbelief, acceptance.

 

The Rejection stage reminds me of a quote: What we don't understand, we fear. What we fear, we judge as evil. What we judge as evil, we attempt to control. And what we cannot control...we attack.  –D. Brown

 

When people learn reverse mortgages are safe, highly-regulated, government-insured loans, they realize those who say, “Reverse mortgages are a scam,” are ignorant; they just lack knowledge.

Are Reverse Mortgages Expensive?

by Kent Kopen | May 01, 2015 |

Benefits, How loan works, Risks, FHA HECM |

There are several myths about reverse mortgages: the lender will take your house, they’re very expensive, the kids won’t get anything, etc.  Ongoing and recent changes by HUD to the FHA-insured reverse mortgage program have enhanced its long-term stability and suitability as a solution to one of America’s biggest demographic challenges – bridging the gap between longer lifespans and insufficient retirement savings.  Here we will consider the claim that reverse mortgages are expensive.