In this first of 3 episodes, we address Reverse Mortgage myths, define the programs and how they works, and delve into the HECM Line of Credit. You will be surprised.
Approximate Time Stamps
2:15- Three ways to use Reverse Mortgages
3:20- What is a Reverse Mortgage?
5:01- How much money will you receive and how long will it last?
6:09- Factors that determine how much you can borrow.
6:54- Obligations of the borrower.
7:53- When banks can consider you in default.
8:25- Celebrity endorsements.
8:52- Who owns the house?
10:20- Internal amortization rate.
11:13- Can you check your loan balance?
12:58- Can you get out of a Reverse Mortgage without dying?
13:28- Who you are working with.
14:40- TRID, Loan Estimates, and Closing Disclosures.
15:20- Will this be a hardship on the adult children?
15:35- Are the adult children responsible for selling the home?
16:10- Can surviving spouse be evicted from home if not on mortgage?
18:40- New legislation for Reverse Mortgages.
20:30- Do financial planners know about using Reverse Mortgages in their planning?
21:55- Many financial planners seeing that incorporating a Reverse Mortgage EARLY in can create 90-95% success rate of not running out of money.
23:40- Myth of equity sharing with the bank.
25:20- What if borrower dies within 5 years, do they lose money?
26:22- Types of RM lenders. Celebrity spokes people, call centers.
30:00- How expensive are RM closing costs?
31:00 – FHA mortgage insurance premium.
34:00- When can you get out of a RM?
35:50- Very flexible payment options that you can change as needed.
37:20- You can pre-pay without penalty.
38:41 – Creative ways to use a RM. Is this a loan of last resort?
40:15- Early use in retirement planning.
42:00- Unlike a forward Line of Credit, a RM Line of Credit cannot be canceled.
43:05- RM Line of Credit loan amount will continue to increase automatically.
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In Part 2, we will have Ron’s favorite music, his looking back from age 95, and his death thoughts.