Not all reverse mortgage calculators are created equal

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

One of the great features of the home equity conversion mortgage (HECM) program is that eligible seniors have multiple options designed to meet a variety of different needs. They can a) draw cash upfront; b) select a credit line on which to draw in the future at their own initiative; c) receive a tenure annuity for as long as they remain in their home; and d) receive a term annuity for a period the senior selects. These options allow seniors to meet a large variety of needs. Here is a partial list, indicating the option involved: They can relieve themselves of the monthly payment obligation on an existing mortgage or other debt by paying it off with a HECM, which has no required payment (a). They can minimize the cash drain involved in purchasing a house by taking a HECM in conjunction with the purchase (a). They can draw funds intermittently to meet unanticipated or special occasion cash needs (b). They can offset t...