New Version of the Kosher HECM Reverse Mortgage Calculator
PHILADELPHIA, Pa., October 5, 2017 (Newswire.com) - Mortgage Professor LLC has released the latest version of its unique Kosher Reverse Mortgage Calculator designed for seniors. The new features increase both its power and usability. In particular, the calculator’s new slider technology greatly simplifies seniors’ ability to see the tradeoffs involved in various HECM options for drawing funds.
Bridge to Senior Objectives: The calculator now allows users to select from among 10 possible objectives, and receive step-by-step guidance on exactly how to use the calculator to meet the objective selected.
Improved Guidance on HECM Options: HECM reverse mortgages provide a wide range of ways in which borrowers can draw funds, which poses the challenge of finding the set of options that best meets the unique needs of each borrower. With the revised calculator, borrowers have access to slider technology that allows them to see the exact tradeoffs between different ways of drawing funds. As always, if they need help, they have access to HECM option experts who have no financial interest in whether the senior closes a transaction or doesn't.
Equity Disclosure Upfront: Seniors drawing funds from a HECM reduce the equity in their homes, leaving less for themselves if they decide to sell, or for their heirs if they stay put. At the same time, however, their homes are probably appreciating in value, which increases their equity. A borrower selecting from among alternative options that have different impacts on equity remaining now has access to the best possible estimates of the equity associated with each option.
Better Guidance on Loan Selection: In selecting a loan on the Kosher network, seniors have access to multiple price quotes from multiple lenders, which is how a competitive market works, but which can be confusing. To facilitate the decision process, the calculator now identifies the specific loan that best meets each of the user’s objectives.
Better disclosure and guidance notwithstanding, something may go wrong. If it does, the Mortgage Professor or his designee will act as ombudsman for the senior.
Jack M. Guttentag is Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania.
Source: The Mortgage Professor