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Archive for the HECM Category

Ten percent of older homeowners could benefit from HECMs

Ten percent of older homeowners could benefit from HECMs

About 10% of the homeowners aged 65 and older would benefit from the use of home equity extraction tools, according to a new study from the Urban Institute — but major structural and institutional barriers remain. Researchers Laurie Goodman, Karan Kaul, and Jun Zhu explored the untapped market for reverse

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Should I use a reverse mortgage in retirement?

Should I use a reverse mortgage in retirement?

Research by the Insured Retirement Institute reflects that 24% of baby boomers have no retirement savings – which is the lowest number recorded since the beginning of the study in 2011. Another sobering data point shows only 55% of baby boomers have some retirement savings and, of those, 42% have

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How recent reverse mortgage changes cheat the consumer

How recent reverse mortgage changes cheat the consumer

The reverse mortgage industry lives in a new world after October 2, 2017. That is because new HECM (the industry term for reverse mortgages; it stands for Home Equity Conversion Mortgage) rules protect consumers by standardizing and simplifying the disclosure of costs.

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Reverse mortgage vs. traditional mortgage

Reverse mortgage vs. traditional mortgage

We understand that getting a reverse mortgage can be a difficult decision. As a licensed CPA, we’ll take the time to understand your unique financial situation and give you honest advice—whether that results in you getting a reverse mortgage or not. Although there are numerous factors to consider, it usually

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Using a reverse mortgage to purchase a home

Using a reverse mortgage to purchase a home

It would be a rare circumstance that purchasing a home with a reverse mortgage would be the best financial alternative. The closing costs, as more fully discussed in other sections of this website, will likely be very high. Unlike a refinancing, the closing costs cannot be paid by the lender,

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Do You Prefer HELOC or Reverse Mortgage?

Do You Prefer HELOC or Reverse Mortgage?

Below is a link to a worthwhile article comparing a traditional home equity line of credit (HELOC) and a reverse mortgage line of credit, called a Home Equity Conversion Mortgage (HECM) in the lending industry. It is worth noting that the HECM never expires and grows monthly indefinitely, even of

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Home Equity Line of Credit or Reverse Mortgage Line of Credit?

Home Equity Line of Credit or Reverse Mortgage Line of Credit?

Think all home equity credit lines are the same? Watch this 2 minute video and learn that there are some surprising differences! This video is more marketing than educational, but it makes a point.  There is a lot of misinformation on reverse mortgages, especially how the related credit line works.

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New rules on reverse mortgages

New rules on reverse mortgages

In 2015, FHA adopted the “financial assessment” guidelines which were designed to stem the financial losses being incurred by their pool of reverse mortgage loans.  These guidelines centered around evaluating the perspective borrower’s credit and cash flow.  Prior to these new guidelines, almost every borrower over 62 and with adequate

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DS Consulting
15281 Weeks Dr.
La Mirada, CA 90638
Phone: 562-902-2677

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Dennis Sanchez
NMLS #281480
BRE #01179128
California CPA #34077 (inactive)
DS Consulting
NMLS #793097
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