President Mace Kochenderfer CRMP(Certified Reverse Mortgage Professional) of New Mexico Reverse Mortgage pokes fun at Henry Winkler(The Fonz) for being a pitch man to the reverse mortgage industry. The guy you see in the picture, with the telephone number 555-AAA-AAAY plastered to his chess, was an actor who was mimicing/mocking the character played by Henry Winkler on the TV program “Happy Days” who also had director Ron Howard in its cast. The Fonz was in his early 30s when he did his infamous thumbs up that you see being weakly imitated, as intended by the producer of commercial, by this 50+ “actor” even with the black leather jacket.
Before you sign on the dotted line, please be aware of the multitude of reverse mortgage costs and fees, which include the interest rate, loan origination fee, mortgage insurance fee(PMI), appraisal cost, title insurance(yes the home owner has to absorb this) and various other closing costs, which are must higher compared to a traditional mortgage. All these fees and costs could exceed $35,000.
ALSO, you will lose equity in your home. This means your heirs will inherit less when you croak. It is called reverse for a reason. In a traditional home mortgage you increase your equity with each monthly payment. With a reverse mortgage, each payment you receive will decrease your equity.