Happy Days aren’t here Again

Facebooktwittergoogle_plusredditpinterestlinkedinmail

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.

 

Very weak impersonation of The Fonz
Very weak impersonation of The Fonz
Facebooktwittergoogle_plusredditpinterestlinkedinmail

2 comments on “Happy Days aren’t here AgainAdd yours →

  1. Tricia Drago, writing for New Retirement, proves her financial credentials are suspect when she writes

    “With a traditional mortgage, you own the home even though you owe a lot of money at the outset of the loan. You simply pay off the loan amount over time until you eventually (hopefully) owe zero.”

    Her second sentence is accurate, BUT her first statement where she claims one owns their home with a traditional mortgage is mistaken. The lender or bank owns the home and can foreclose upon you if you fall to far behind on your monthly payments.

    You do have rights as a seller and own the home in that sense, however it is the lender who has major lien on your title which effectively makes “your home” the lender’s property.

    Related to post commentary is reverse mortgages are for people who are home rich but cash poor. Home rich references owner who has a lot of equity or a completely paid for house and we all know what cash poor means!

  2. Be careful with HECM(Home Equity Conversion Mortgage) specialist Michael J. Meyers. This wolf advertising in Seattle newspaper is afraid to call what he is trying sell a reverse mortgage.

Leave a Reply

Your email address will not be published. Required fields are marked *