Mortgage Rates

What is a Reverse Home finance loan? Comprehending the pros and drawbacks of HECM





HECM stands for Residence Fairness Conversion Home finance loan, popularly recognized as a Reverse Home finance loan. Considerable alterations transpired on October one of this year and Rob Brinkman walks via not only the alterations, but the basic principles of understanding how these mortgages function.

This movie will reveal several of the rules in get for you to do a reverse home finance loan properly, like what to view out for and what loopholes can price tag you revenue if not accomplished properly.

Locate out why the greatest home finance loan withdrawal went from 70% to forty% together with some other massive alterations that transpired just after October 1st, 2013.

You will also study about the adjustable rates on the new reverse mortgages and why the preset rates are a matter of the past.

Preferred amongst seniors, a Reverse Home finance loan is a reputable instrument for profits scheduling. As an Cash flow Specialist, Rob utilizes a situation research of a usual retired few residing on Social Safety, Pension and some Investment Cash flow, to show a circumstance that may well normally implement.

To find out much more about Rob and to obtain all of his absolutely free reports, verify out

Nothing at all in this movie can be construed as expense assistance or can be utilized to entirely make a decision on a reverse home finance loan. This is just the standard schooling on HECM’s and you really should always talk to a reverse home finance loan specialist just before at any time generating any moves

33 comments

  1. this is a great video.
    Thanks millions

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  2. Are these numbers still that same from 2013 to 2017?……….i.g. 60% of the 40% of Value if 62 yrs old? Also, still only adjustable LOC loans with max. of 13%?

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  3. I didn't understand it all but it is a very explanation.

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  4. Very nice presentation on such a complicated matter. Hands down!

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  5. Watched 5 min of video.. most of the information is wrong… no need to watch more

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  6. DON'T DO IT.

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  7. After the baby boomers pass away there will be less people in the U.S…..the resulting being that there will be less home buyers. The bank will sell your house and the cycle begins again. This will cause the next big crash.

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  8. 32000 is it me or the right number is 132,000

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  9. Thanks for the information, my mother had this reverse mortgage, and now she passed away. There is no equity left.
    The reverse mortgage company are asking &56,000. The house in great need of repair. Nothing was ever updated. I her daughter live in the house as well. If I choose to stay is that what I need to pay back with all badly needed renovation??

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  10. Not only is this out of date, but it is wrong in some of the statements. Charles Guinn, Certified Aging-In-Place Specialist.

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  11. It is my understanding the 95% for heirs is different than what you presented.  Actually they can purchase the home for 95% of the fair market value.  So if its worth $300,000, they can buy the home for $285,000.  This really only comes into play if the house is upside down as they can keep the home and get it for 95% of its value.

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  12. You don't calculate how many years care giver will be paid for out of RM. It is already paid for $800 per month by paying off first mortgage. The rest is for other things.

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  13. just started looking at a reverse mortgage as possible way to retire.  thank you.  will have to look at this many times before it becomes clear.  

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  14. I'm checking in for one for myself. However, I make enough money to pay for the property taxes and insurance without the reverse mortgage. If you don't want to lose the house, you MUST pay those plus a mortgage insurance in case the economy goes under again and price values end upside down again. However, the company I'm checking with only loans half the value of the property and the fees come out of that value. If I did not make enough money to pay the property taxes and insurances, I would not consider a reverse mortgage unless you are very very disciplined in paying those first out of the lump sum or payouts.  By the way, your heirs have a year to sell the property, or take over the loan. If that isn't stipulated, don't sign the paperwork. Consumers are more protected than when reverse mortgages first started and financial counseling is required now too. However, if your property isn't worth much to begin with and you don't make enough to pay property taxes and all the required insurance to begin with, I say don't do it. Otherwise, you can re-invest the borrowed money in something that will make you money or let it sit in a bank 4% interest bank account. 

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  15. Don't do it.. I know some people who have lost their homes.. Another bad idea that Ronald Regon thought of

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  16. If anyone would like more information on the HECM loan please contact me, Matthew at 516-754-8200
    I am a licensed broker in ny, fla, conn, nj. I will be happy to help you obtain this loan or just lend my knowledge on it as well, it's a very complex program that chances ALL the time…

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  17. i'm by no means an expert in this kind of thing, but it seems to me the whole Reverse Mortgage scheme was about grabbing houses. Whether the original borrower slips up while they're still alive and loses their home or they die and leave a massive debt for their children to pay off or else they take possession of the home anyway. The outcome is the same, because most young adults are in no position to pay off their parents' loan.

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  18. Reverse mortgages turn you into tenants in your own home. What happens when you need to move into assisted living? That's when they take your house and give you the boot. Don't get scammed.

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  19. Bankers spend their whole lives chasing you down to get you to go bankrupt and become wage slaves but when you succeed in life they get you back with a reverse mortgage.  SUCKA!

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  20. House is free and clear, we put it in a Irrevocable trust to apply for medicaid, mom is 89, receives ss, she has no other assets in her name? Can she still receive a RM? expenses for homecare are like 4k per month.

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  21. unfortunately i cant endorse this financial instrument seeing as i was an heir and because the banks destroyed the RE market in 07-09.Hence when my mother passed away in 13 the loan was inverted.If i wanted to stay in the house it would cost 172,000.Zilla has the appraisal at 183,000.But the ExACT SAME model home and sq footage in this complex is only fetching 135,000-155,000.FHA is supposed to have this insured and make up for the banks destroying the market and the value of the home price being stagnant for the 6 years she had this tool.They aren't,i will be homeless soon and the bankers will get this house for the 80K line of credit and 56K she spent from that.So after RE fees,taxes and paying the bank back the 56K plus fines,penaltys,fees and charges(yes,fines and penaltys cause she died).There will be nothing left…I CURSE TO HELL THE SCUM THAT I TOLD "put me on the do not call list" from wells fargo who just kept calling and suckered her into this…..these instruments are not fitting in a collapsing economy on the verge of not being the reserve currency of the world.Housing prices will NOT go up…everything else WILL.

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  22. I would like to invite everyone to check out some of our segment in HGTV. Thanks

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  23. What if your home value goes up in the time you're 62+, can you borrow more?

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  24. There is so much wrong with the information in this video it is hard to know where to start. As a CPA and a SVP of the largest reverse mortgage lender, providing the correct information about HECMs is paramount.

    First, there has never been a time since 2007 when there has not been a fixed rate HECM product. We still provide them to this day. The presenter confuses the elimination of the fixed rate HECM Standard on April 1, 2013 (not July 1, 2013) as the end of all fixed rate HECMs. Between April 1 and September 30, we still offered fixed rate HECM Savers. The ability to offer HECM Standards and Savers ended on September 29, 2013 (and for practical purposes a few weeks earlier). The general differences between Standards and Savers is that Standards offered more proceeds at a higher upfront cost than Savers. 

    Since September 30, 2013, there is only one type of HECM and it is offered as both fixed and adjustable rate.

    HECM proceeds vary not only by the age of the youngest borrower and the appraised value of the home but by expected interest rates as well. When the expected interest is 5.06% (called "the floor") or less, reverse mortgage proceeds are at their peak. So let us look at HECM proceeds when the expected interest rate is at the floor or 5.06%.

    Before September 30th, a Standard provided a 62 year old with proceeds of 61.9% of the Maximum Claim Amount (or MCA which is generally, the lower of the appraised value of the home or the FHA HECM Lending Limit, now $625,500). Now the highest percentage a 62 year old can get is 52.6%. If the youngest borrower is 90 years old, the Standard provided 77.6% of the MCA but now only 66%.

    52.6% to 66% are much different than 40% to 47%. Besides this and never since 2007 being without a HECM fixed rate product, there is much more wrong with the presentation. If you want accurate information about a HECM, seek out a competent HECM originator. You can reach me at jveale@s1l.com.    

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  25. what if my home is underwater, can I still apply for Reverse Mortgage?

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  26. Good presentation of a complex subject.  A few minor fact corrections: Oct 1st changes resulted in a decline in range of net proceeds from about 56%-75% to 47%-61%, Fixed rates were limited April 1st, 2013 but are still available, Broker commission was not impacted Oct 1 but all reverse mortgages are resold so even lenders are really brokers. All MIP's are FHA fees.  Initial MIP declined from 2% of appraised value to .5% on Oct 1st, except when the initial draw exceeds 60% of available funds in which case it is now 2.5%. Ongoing MIP (FHA fee) is 1.25% per year of amount owing.  Lifetime monthly payment does not give you less available funds than a line of credit.  Call Mac Tennant, Access Reverse Mortgage 800-806-7126 if you'd like to discuss.

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  27. An extremely helpful and informative video.

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  28. So glad you brought up the changes in these mortgages, I heard there are more coming. Any insight?

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  29. Thank you Frank.

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  30. Thanks Curtis, very kind comment.

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  31. Thanks guys. Just trying to keep up with your awesome videos!

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  32. Agreed! Rob has an amazing knack of explaining the complex.

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  33. This is hands down the best explanation I've ever seen on how a Reverse Mortgage works. THANK YOU!!

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