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alternatives to reverse mortgages

Equity Key: Reverse Mortgage Alternative. Contact Shary or Mary at 1-888-248-7650

Introducing a new and innovative way of putting your commercial and residential property to work. If you are 65-85 years old discover an easy way ...

Figure Technologies rolls out sell-and-leaseback alternative to reverse mortgages

Under the offering, Figure would buy the home and grant the sellers a lease that renews annually. Homeowners get their proceeds in one lump sum to bolster their nest egg, cover their expenses, or fund what matters most to them. Figure takes care of the property management from there, covering property taxes, homeowner's insurance, and ongoing maintenance.

Figure Home Advantage is initially available in 12 markets: Atlanta, Cincinnati, Cleveland, Dallas, Houston, Philadelphia, Phoenix, Pittsburgh, San Antonio, Jacksonville and Tampa, Fla., and Reno, Nev. The company plans to reach 40 markets across the US by the end of 2019.

"We're building solutions to help Americans cope with this looming retirement issue. With rising interest rates, cash-out refinancing is an increasingly painful way to meet cash flow needs. Yet for homeowners nearing or already in retirement, home equity may be the most important source of money they have to support retirement," Figure CMO Wendy Harrington said. "By unlocking hard-earned equity with Figure Home Advantage, homeowners can aid their retirement with additional funds and less stress.

A Stanford Researcher Offers Perspective on Reverse Mortgage Practices

The sequence of returns argument is more smoke and mirrors than reality in today’s market.

The first problem cited in the article above is taking reverse mortgage proceeds versus savings. Savings are not earning and are expected to earn at a rate equal to or greater than the rate of savings, net of income tax. If Barry Sacks had used a realistic earnings rate rather the rate of return for the S&P 500 for a selected but biased period of years, his article on conventional wisdom would have been concluded just the opposite of what it did, even in most cases, net of income taxes.

Just today a firm that is well known for its relative accuracy in predicting rates of return for various indices came out and stated that the S&P 500 would likely return 32% in total over the next five years. On a monthly basis that is a rate of return of just 5.56%. That is a little better than the combined accrual rate on a HECM if the initial note interest rate does not increase over the same sixty month period. Considering income taxes, the answer favors the Sacks methodology but looking just at interest rate risk, the answer favors taking out the HECM but not using its proceeds until the portfolio is gone.

Are there any alternatives to Reverse Mortgages?

My gram is 63 and is paying her mortgage every month but doesn't have much else left over. She owes $179,000 on a house worth $210,000 in this market. Is there any alternative to a reverse mortgage where she wouldn't have to make a monthly payment?

sell the house and move into a senior apartment that she can afford. she'll have SS income when she retires. she should put the proceeds from the sale of the house into an investment vehicle appropriate to her age, need for cash, etc.