A Winning Reverse Mortgage (HECM) Strategy

A Winning Reverse Mortgage (HECM) Strategy. Today we go over an example of a client who wanted to no longer be required to make monthly mortgage payments and wanted to set up a growing Line of credit to financially protect himself no matter what the future may hold.

Note, if you happen to be in a state I am not licensed in, I will refer you to a professional that is licensed in your state.

Contact Details:

Christina Harmes Hika
NMLS 1094286
California Department of Real Estate 018009003
Amerifund Home Loans, Inc
2655 First Street Suite 220
Simi Valley, CA 93065
California Department of Real Estate License # 01478386

[scottclark]

Thanks for the great info. This is the first video on the HECM that I've seen which explains the various costs involved.

[darrylb]

I live in Pennsylvania, can I do my loan with you?

[sergiosantana]

If the goal is to maximize the line of credit can the closing cost be paid out of pocket ?

[steve-on]

If you have a lot of equity, elderly, and are considering a reverse mortgage, just sell the house and downsize. pay off the new downsized place and pocket the equity so you can afford the tax, insurance, etc.. that way, you are not paying a ton of interest to reverse mortgage company. simple. someone that is 80+ years old and is not wealthy has no business trying to age out while maintaining their larger residence they lived in when younger with a family when they were making more income. period. if someone has to do a reverse mortgage to afford in home care, very risky since if they live longer they may lose the house if they run out of loan draw and cannot maintain the house.

[shelleycharlesworth]

I am a 76 year old widow- retired- and I own a home free & clear worth $2 million [ maybe even $2.5 million ].
I have no children or debt and I think that I only want a reverse mortgage for $300K.
I have pension income from my pension and I get 50% of my late husband’s pension.
I do have some savings and some investments totaling about $500k
Would a reverse mortgage of $300k be a good idea for me ?
I’m in an affluent suburb of San Diego and home prices have increased quite a lot in last 4 years.
I know I must keep the home up and pay the property taxes and homeowner’s insurance. I’m
still able to do that but rising costs are causing me to worry that my expenses may exceed my income
In a few years.

I want to stay in my home for now but I want know what I will
owe if, say, I decide to move—sell my house in 3 or 4 years. Or say I HAVE to move due to failing health?
My health is good for now but one never knows. Will what I owe now be $375, 000, $450, 000 $ or ?? On
a $300, 000 reverse mortgage ?

[FernandoSoria-mhli]

Question. I’ know this 96 yr old who obtained a reverse mortgage 20 hrs ago and in passing mentioned that he’s payments from the line of equity was going to run out soon, since he has no heirs and will be able to continue living in his condo until he dies. Is there a way for me to assume the mortgage and refinance and repay it back as he continues to live there, or would I have to be an heir and wait till he dies to take over the debt left behind and seek to refinance so reverse mortgage gets paid back in full ..I was thinking it would have been better if he ran out of money, assume the debt now than later when he dies so fees don’t continue to add up. Appreciate you’re input. Thanks

[calvinmiller]

How can I contact you. I am very interested in a reverse mortgage?

[sunlite]

Didn't know it at the time but now that, I think of it, my RM is like an insurance policy that grows larger each year. Originated 2009 with a credit line of $250; now almost $500. No draws! Yes, I did paid off loose ends and ready to reduce debit line again. Debit line created by monthly fees accumulated. At 8% it pays to do this. Principal reason for this was to provide a fool proof 'pension' for DW 10 Years younger. Caveat: only borrow if you don't need money.

[Nick-cpwf]

Quick question hypothetically say if John Doe never draws from that line of credit? Eventually after hopefully many good years, after he passes and he leaves the house to his family, are his spouse/heirs in any way responsible for paying the reverse mortgage company back anything? Will they own the house with the ability to live in it or sell it as the choose? Of course i can see paying some servicing fees etc in the neighborhood of 10k say. But anything more than that?

[judykieffer]

Can I contact you to ask advice ? I trust you .I wish we was told this in the beginning .We took a lump sum not knowing all this .yes, I need this video and anyone that we can trust to ask questions too.

[vaughnholtz]

On the Capp, we have a fixed rate of 2.6% on a 15 yr loan maturing in 2035. When I turn 62 we will owe $120000. Based on previous history the Home would be worth appx $1, 000, 000. If I got a reverse mortgage would the highest cap be about 7.5%? We would like to buy a smaller “snowbird” home out of the metro Seattle area, and one of daughters would be staying in the house year round. Idea being she would make interest payments then when we pass on she could sell both homes, sell 1, or or get a loan to pay off the reverse mortgage. Somewhat long winded, but feedback of this scenario would be helpful.

[joepacheco]

I do now have a question: What’s in it for the bank/lender? Why are they doing this?

[StephenSeaton-kdek]

Hello, great video. I am 73 years old and am thinking of a reverse mortgage. I have my home set up as a Lady Bird Deed aka Enhanced Life Estate Deed so my heirs (kids) are already on the title. So, how does this affect them if I died. Thanks, Stephen.

[judykieffer]

What do you do if your heating and ac system needs replaced ? Can hud help on a repair loan ? Thats also that you pay it back in monthly payments .

[janellaboyd]

Hello Christina, my mother home is paid for, but she is short on income and need repairs. When are you going to have a video on that area?

[mermulle]

If borrow limit increase is the FIXED RATE change? at all

[degoo]

could you give the breakdown if the variable rate changes over the life of the loan? Isn't the current rate close to 10%? And if home appreciation levels to 2-3%, could we see that "not to unrealistic" situation?

[olivecracker]

So if your house needs 40 grand in repairs and they make you do the repairs, what home value are they going to be using to access the loan ? The value before repairs or the value after repairs ?

[johnmcmanus]

question im 59 and on SSDI and I wanted to buy a new built house. the house is say $650 thousand. and I put down half in cash. I wanted to get the HECM mortgage. So now I have no payments anymore.But lets say a year later i inherit some money .Could I pay it off with no penalties.I herd you say not to but could you.

[lizg]

My in
Wa put their daughter on the deed when they did the reverse mortgage. They bought their home for 14, 000 and it is worth close to a million. Big mistake