Reverse Mortgages: The Financial Ugly Duckling
From Wikipedia, the free encyclopedia:
A reverse mortgage is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments.
In a new book called Reverse Mortgages: The Financial Ugly Duckling by Dan Mullen, CPA (Author), Brady Mullen (Author).
Available at Amazon the authors point out:
For years, reverse mortgages have been misunderstood—dismissed as a last resort for the financially desperate. But what if everything you thought you knew about them was wrong?
In REVERSE MORTGAGES – The Financial Ugly Duckling, Brady Mullen and Dan Mullen, CPA, challenge the myths and misinformation that have long plagued this powerful financial tool. Drawing from their combined expertise in financial advising, tax strategy, and real estate, they reveal how reverse mortgages can provide retirees with flexibility, financial security, and new opportunities.
This book breaks down the mechanics of the FHA-insured Home Equity Conversion Mortgage (HECM), explaining how it can be used to eliminate mortgage payments, supplement retirement income, fund home improvements, or even purchase a new home. Through real-world examples and clear financial analysis, the authors show why savvy retirees and financial professionals alike are rethinking the role of home equity in long-term planning.
What many people don't know is that there are a number of types of Reverse Mortgages.
- The most popular type of reverse mortgage is the Home Equity Conversion Mortgage (HECM)—a government-backed loan insured by the Federal Housing Administration (FHA), under the U.S. Department of Housing and Urban Development (HUD). HECMs are designed to provide flexibility, offering payout options like a lump sum, monthly payments, or a line of credit to meet a variety of financial needs.
- For older homebuyers looking to relocate or downsize, the HECM for Purchase (H4P) is a powerful tool. This option lets buyers use a reverse mortgage to purchase a new primary residence, combining the home purchase and reverse loan into a single, streamlined transaction.
- There are also proprietary reverse mortgages, which are private loans created and backed by individual lenders. While these aren’t federally insured, they often appeal to homeowners with high-value properties or those who don’t yet meet the age requirements for HECMs.
Contact me today for some Reverse Mortgage Lenders.