Declaring Mortgage Independence-Exclusive Interview

mortgage alternatives for older homeowners



Older homeowners have a myriad of mortgage choices. Is a 30-year mortgage really a smart move or should they declare mortgage independence?

In part two of our exclusive interview with New York Financial advisor Robert Intelisano, we cover the risks of a 30-year mortgage refinance for older homeowners and why partnering with other mortgage and financial professionals may the most effective means to reach distressed homeowners.

1 comment

The Positive Realist July 6, 2020 at 2:10 am

As Robert mentions, during forbearance lenders should not be charging additional interest during the period that payments are suspended. Some mortgage advisors are getting that wrong and even provide calculators that get that wrong. Recently I came across a calculator that could not correctly determine the months remaining on a fully amortized thirty year mortgage. Because of the individual who was providing those calculators as well as several other different calculators he provides, this lack of care has caused me to pause and wonder how accurate his other calculators are. Be careful about what you rely on.

Some may worry about a 69 year old taking out a 30 year fixed interest rate fully amortized mortgage. I know several individuals who would have no problem making those payments at today’s low interest rates. Some are disciplined and prudent while others are wealthy. These seniors might find these options more favorable than a HECM or proprietary reverse mortgage.

While Robert emphasizes cost comparisons and break-even analysis, those in their 60s should be more focused on cash flow than on cost comparisons and break-even analysis. For most moderate income seniors, the need is for guaranteed cash flow. Yes, seniors should perform cost comparisons, break-even analysis, and other analytical procedures but without losing sight of their ultimate need of avoiding running short of cash in retirement especially in this employment environment with continued health concerns over COVID-19. As one senior recently said: “Even if I could get back the part-time back that I love so much, the question I continually address is whether or not the health risk rules out that option and so far it DOES.”

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