Kevin, a ton of information there and good stuff about the reverse mortgage... so can a homeowner lose their home with a reverse mortgage? They do have to occupy the home, is that correct?
Kevin A. Guttman-Autho...
Colorado Springs, CO
Great post, I've wondered about some of this.. Thank you for the insight.
Kevin A. Guttman-Autho...
Colorado Springs, CO
Judi, they DO have to live in the home at least 6 months a year. They CANNOT lose their home unless they do not pay their homeowners insurance and property tax, which is the same for any mortgage. Thanks for the questions!
Great blog Kevin. One thing you did not mention that is a key benefit with a Reverse Mortgage program that no other forward conventional or home equity type of program provides is the growth factor. The untapped portion of a homeowner’s principal limit will compound annually as they age thereby providing them additional available credit annually. This is a significant benefit that many simply don't understand.
Kevin A. Guttman-Autho...
Colorado Springs, CO
George, it is true that someone with a reverse mortgage can also have a line of credit tied to it that grows automatically 5% a year, despite what happens in the real estate market. This will be a topic for a future blog as it is a "BIG DEAL". Thank you for pointing it out!
Yes. You are referring to the growth factor. The untapped portion of the credit line will compound annually at approximately 5%. The key here is "untapped portion". I agree its definitely a big deal. This is a huge benefit that is often over looked. The HECM Reverse loan is a credit line. There isn't an additional credit line attached. I know this is confusing because their is a fixed version and a credit line verison. I hope this provides clarity.
Hi Kevin Guttman 877-251-9709, This is great information, thanks for the great blog.
Kevin A. Guttman-Autho...
Colorado Springs, CO