Standby Reverse Mortgages: A Risk Management Tool for Retirement Distributions

The importance of effective distribution strategies is rapidly increasing as 78 million baby boomers approach retirement over the next decade.1 The diminished role of defined benefit plans, longer life expectancy, escalating health care costs, and poor equity returns over the last decade are just a few of the issues confronting retirees that create a challenging […]

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The Hidden Value of a Reverse Mortgage Standby Line of Credit

Several recent research articles published in the Journal of Financial Planning have investigated how opening a standby line of credit through a reverse mortgage and strategically spending from this line of credit can help improve the sustainability of retirement income strategies. In this article, I show that the benefits of opening a home-equity conversion mortgage […]

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Several New (and surprisingly beneficial) Uses for Reverse Mortgages in: Gray Divorce, Retirement Income Planning, Settling Estates, BK13 and Solving for Foreclosure

Reverse Mortgage for Gray Divorce

Tuesday, July 19th @ 12:00 pm – 1:30 pm, San Rafael   Attention Marin County Bar Association Members -Family Section and Others Speakers: Mary Jo Lafaye, nmls #246222, HECM Reverse Mortgage Specialist and Barry H. Sacks, J.D., Ph.D.   “Gray Divorce” is increasing. This course will focus on the evolving understanding of the use of reverse mortgages […]

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Recovering a Lost Deduction

Cash Flow with Reverse Mortgage

This article, originally published in the Journal of Taxation, examines the conditions, requirements, and limitations on deductions of the interest accrued on reverse mortgage loans. Although the conventional approach for passing a borrower’s home equity to heirs generally results in the loss of the deduction for reverse mortgageloan interest, the deduction may be used if it […]

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Tax Deductions and Reverse Mortgages

Tax Deductions and Reverse Mortgages

You may have tax deductions you can use if you have a FHA-insured Home Equity Conversion Mortgage (HECM). Tom Davison’s in-depth article on reverse mortgage’s tax opportunities and obligations for annual tax reporting. Davison includes information on the following topics: Loan Proceeds are Not Taxable Income Interest Deduction Mortgage Insurance Premium (MIP) Deduction Interest on Acquisition […]

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New Math on Reverse Mortgages…

A decade ago, most financial advisers would roll their eyes at the mention of reverse mortgages, loans that give homeowners an advance on their home equity and allow them to delay repayment until the home is sold. However, today, some new regulations and ideas about reverse mortgages might be just the solution. See more on […]

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Advisers Promoting Reverse Mortgages for Retirement Planning

Reverse Mortgage for Financial Planning

According to a recent article in the Wall Street Journal, new safeguards have led many advisers to explore when and how to use reverse mortgages in financial plans. The repayment-deferred Home Equity Conversion Mortgage (HECM), FHA’s recently-revamped version of the former “reverse mortgage” is fast becoming a retiree’s best friend when endeavoring to extend cash […]

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Reverse Mortgages With A Twist

As retirement nears, many older couples consider refinancing their mortgage on their current home. But there may be better financial options. One is the equity conversion mortgage (HECM) for purchase, a type of reverse mortgage. It could allow you to downsize your current home, buy a new one, and eliminate monthly mortgage payments. Read more about the […]

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