Tom MacDonald - Reverse Mortgage Consultant






       Reverse Mortgage Consultant

      Tom MacDonald


       707-265-6385      800-801-5727   Is This The Best Reverse Mortgage Website in the U.S.*

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Reverse Mortgage Consultant- Tom MacDonald BBB Business Review

Did you Know...?

Here are a number of facts you may not be aware of.  Some of these have a full page discussion and I'll refer you to that page.  Some will also have a short video about it.

The videos that are imbedded are excerpts from The Lee and Desi Real Estate radio show I appeared on and have added some visuals to make it a little more interesting.

Did You Know a Reverse Mortgage can come with a line of credit that grows over time?

At the current Expected Rates, the Line of Credit will double in less than 15 years and nearly triple in a little more than 20 years.  Here is an example of how that might work.  Line of Credit Draws Offset by Growth

Did You Know it may not be best to exhaust your savings before considering a Reverse Mortgage?

Higher interest rates may mean less money later.  You may also lose the benefit of a growing line of credit that grows at the same rate you are charged - likely higher than bank interest rates - providing access to more money later in life.  See a longer article at Should You Draw Down Savings Before Doing a Reverse Mortgage with video

Did You Know a Reverse Mortgage helps hedge against possible home values dropping?

The Reverse Mortgage may come with a Line of Credit that grows over time regardless of what the value of the home is doing.  Many of my clients had access to their Line of Credit even after the market dropped and they had no equity.

Did you know you can make payments on a Reverse Mortgage?

This allows you the ability to retain as much equity as you wish, while also allowing you to skip payments without penalty, when you wish.  (Perhaps during the holidays.)

Did you know a HELOC reset could cost you more money?

A HELOC is a bank Home Equity Line of Credit.  They usually have a maturity date of about 10 years.  Many of those done before the crash are starting to come due.  If you qualify, you can usually renew it.  If you cannot qualify (stricter standards now), the lender will usually change it to a fixed rate fully amortizing loan.  This will likely be at a higher rate than you are paying now.  Payments could be quite a bit higher with principal added.  A Reverse Mortgage may be one choice to make that payment go away.

Did you know getting a Reverse Mortgage Now rather than Later could be an important decision.

Many clients say they may get a Reverse Mortgage later when they are older and there is more money available.  While age provides a FEW thousand dollars more with each year, rising interest rates could subtract TENS of thousands of dollars.  FHA (Federal Housing Administration) has also reduced the Principal Limit (your benefit amount - think of it as loan to value) a number of times in the past decade.  This happened most recently with an effective date of October 2, 2017, when they reduced it up to 22% with very little advance notice.  See Should You Do a Reverse Mortgage Now or Later with video.

Did you know you can refinance a Reverse Mortgage with a new Reverse Mortgage?

Just like a regular mortgage you would only do so if it provided additional benefits.  This could be a larger line of credit and/or larger dollar payments to you.  Because FHA home value limits have significantly increased compared to, say 10 years ago, there could be enough money to pay off the existing balance and provide more money - even if your home value is nearly the same as it was 10 years ago.  Costs could be minimal.  With increasing longevity and a growing line of credit, that could be a significant benefit.