(This blog post was adapted from an article which originally appeared on Reverse Mortgage Daily.)
Fox Business host Bob Massi recently dedicated a segment of his show to the subject of reverse mortgages for purchase. In it, he subjectively examined the process of reverse mortgages and came up with analysis which puts the financial option, which is available to many senior homeowners, in a positive light.
In “The Property Man,” Massi interviewed the senior director of a reverse mortgage specialist called Josh Shein. The piece also featured two couples who used a Home Equity Conversion Mortgage (HECM) for Purchase to downsize and save money.
Here is a synopsis of the show:
- First, Karl and Starla Kramer, an Arizona couple traded in their large home for a smaller property after Karl retired.
- The Kramers sold their original home for $500k, and made a down payment of $143k in cash toward the second house.
- Then, the couple used an HECM to cover the rest.
Mr. Shein summarized the transaction by saying: “This allowed them to keep the rest of the money in their pocket, and use the money for whatever they wish.”
Shein and Massi explained the program to people who are unfamiliar with age requirements, tax-and-insurance payments, and the types of properties that qualify for reverse mortgages. Shein emphasized that the product is a loan. He walked viewers through the ways principal balance grows instead of declining, which is the process as in a standard mortgage loan.
Most importantly, the segment features raving reviews by two couples who were obviously very satisfied with their decisions to pursue reverse mortgage.
Kramer’s wife is a real estate agent. She and her husband are happy to be free from monthly mortgage payments, noting that they typically ran out of spending money once their automatic mortgage payment hit their bank account each month. Now, on the 15th of the month, they enjoy a monthly influx of cash from the HECM rather than huge deductions.
The second couple, Ralph and Mary, first took out a reverse mortgage five years ago and then decided to use another HECM to downsize.
“If the market tanks, you’re going to lose the equity in your house, but even if you own your house and the market tanks, it’s the same thing,” Ralph said. “What you’re doing is receiving your equity up front, which is, I think, a smart move if you have a plan.”
This isn’t Shein’s first time with Massi, who is a real estate lawyer. He previously appeared on “The Property Man” back in 2015, sharing two other reverse mortgage success stories. Massi himself is enthusiastic about HECM, having written a column about the products and appearing on “Fox & Friends” to discuss financial assessment and reverse mortgage.
If you have questions about how much reverse mortgage capital you might qualify for, contact Manny LaFosse, your certified reverse mortgage consultant. Residents of Los Angeles County and North Orange County should look to the experts at Reverse Mortgage Certified for great rates and information about the reverse mortgage loans as well as several other available financial options.