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.
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Editor in Chief: HECMWorld.com
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.
1 Comment
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.”