Mandelman Matters

02/24/2024

Has anyone ever taken a THC gummy or edible and it was too strong or made you uncomfortable?

I have and I’d really love to know how many have?

11/27/2022

As Thanksgiving weekend comes to an end, and the "holiday" season formally begins, now would be a good time to reflect on your finances and retirement strategies for the coming year. If you are over 62, and a homeowner, you have some options that aren't available to anyone else. DM me to learn how you can get a Line of Credit that actually makes sense for a retired household.

11/22/2022

https://youtu.be/ghW1KDIrVXc

Here's an oldie but goodie! Its even MORE relevant today....

Wouldn't you like to know if there was something you can do now that would have given you an extra $100,000, $200,000 or more in your retirement years? Reac...

11/22/2022

I’ve been saying this for years. Finally the New York Times agrees.

11/22/2022

Here’s a link to my HECM Video FAQ page. It answers many of the questions people have about today’s reverse mortgages… on video, so you’ll get answers without having to read everything. Hope it helps!
https//:mandelmanmatters.com/faq/

11/18/2022

I see a lot of ads for HELOCs or Home Equity Lines of Credit. I suppose we are seeing more and more of these because with rising interest rates, and declining...

11/15/2022

The HECM Line of Credit: It Should be Called the “Retirement Mortgage”

I need to straighten something out that is both important and widely misunderstood.

HECM is the acronym used to describe the federal government’s insured mortgage program for homeowners over age 62… it stands for Home Equity Conversion Mortgage. It’s also described as a “reverse mortgage,” which makes it sound like something that should be avoided if possible.

The term “reverse mortgage” has a certain stigma attached to it. Some people think that having a reverse mortgage means that the bank will own your home, which is not true. Others think that reverse mortgages are expensive, which is also not accurate.

But the HECM really shouldn’t be called a “reverse mortgage.” It should be called a “retirement mortgage,” because that’s what it is. A HECM mortgage is simply an FHA insured mortgage designed specifically and exclusively for homeowners over age 62… those in or approaching retirement.

The key difference between a HECM and a traditional mortgage is that with a HECM, you get to decide when you make payments on the loan. You can decide to make monthly payments of principal and interest, in which case it works the same way a traditional mortgage works.

Or you can decide to make interest only payments, in which case your principal balance stays the same. You can also decide to make no payments on the loan, in which case the interest gets added to your balance.

I speak with professionals almost every day, lawyers, CPAs, financial planners, retirement coaches...and almost all of them say the same thing to me, "I didn't know the HECM could do that!"

That tells me there is simply not enough information out there, ACCURATE information on what a HECM is and isn't...what it does and doesn't do.

So if you want to find out more for yourself or your clients...DM me, or email me at [email protected] Let's chat!

N

11/15/2022

Older Homeowners Should Avoid a HELOC. Better options exist.

I am sure you know that HELOC stands for Home Equity Line of Credit, and it’s the most common way for people to tap the equity in their homes. And you probably also know that after 10 years, the loan becomes a fully amortized loan, meaning that the borrower must start making monthly payments of both principal and interest.

That means that after 10 years, if not repaid or refinanced, the monthly payments on a HELOC can increase significantly. Most of the time, after 10 years, borrowers refinance their mortgages in order to pay off their HELOCs, which is fine as long as they’re still working and/or have the income to qualify for a new mortgage.

But for people in their 60s or 70s, refinancing in 10 years may be difficult or even impossible leaving them stuck having to make the higher monthly payment at the worst possible time. And that’s when things can become a real problem.

Many things change as we get older and one of those changes is that our incomes tend to go down as we age. Few people see their incomes increase between age 65 and 75, for example. Getting older can also mean increased health care related costs. And who knows how much the house will go up in ten years?

HELOCs were never designed for retirees. They are designed for working-age people… people whose incomes tend to rise over 10 years and then can expect to refinance the loan when it fully amortizes and the monthly payments increase. That’s the opposite of someone who’s 65 or 70 and retired.

Okay, so why am I writing this? I’m writing this because there are two alternatives to a HELOC that are available to homeowners over age 62. And people need to know about them, because they can be much better for older homeowners.

One you may not have heard of is a Platinum Line of Credit (PLOC), a little known 10 year LOC with flexible payment terms, (like the next option below) but very few banks are offering it, so its sometimes hard to find one.

The other option I am sure you have heard about is a HECM or Home Equity Conversion Mortgage Line of Credit. The HECM LOC is probably the single greatest tool a senior (over 62) homeowner with equity in their home, has at their disposal. Just like with the PLOC, homeowners can make mortgage payments whenever they want to, but they never have to.

As long as you remain living in your home and pay your property taxes and insurance, the HECM LOC is guaranteed for life, as opposed to only 10 years like the HELOC or PLOC, which can be an important advantage or older homeowners. The HELOC can be cancelled by the bank at any time, a HECM Line of Credit can’t.

And, of course, if they don’t end up needing the money, they don’t have to borrow it. There are other advantages, too!

If you want more details on the PLOC, or on the HECM LOC and how it can be integrated into your retirement plan, email me at: [email protected].

11/15/2022

As you can see, I am making some changes to my Mandelman Matters page. I hope you enjoy them, and please feel free to reach out anytime. Much of my focus here will be on retirement planning for seniors, and more specifically, my home equity conversion mortgage (HECM) education activities. Here is a quick video to get you started...enjoy!

06/02/2020