Reverse Mortgages for Dummies
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With interest in reverse mortgages on the rise, it was only a matter of time until the creators of the Dummies book series came out with a title on the subject. Reverse Mortgages for Dummies(Wiley Publishing, Inc., 2005, $16.99 USD) contains a lot of good reverse mortgage information presented by a pair of highly qualified authors: Sarah Glendon Lyons (Assistant Editor of Mortgage Originator Magazine) and John E. Lucas (reverse mortgage specialist with more than 38 years experience in the mortgage industry).
Three Things I Liked About this Book
1. Well written and comprehensive, but by no means an “easy” read. Pick this book up with the intent of studying it rather than simply reading through it. Lots of concepts that are probably new to you are presented in each chapter. Thankfully, the writing is clear and understandable. If you decide to pursue a reverse mortgage, the book will serve as an excellent reference resource to keep handy and review at each step of the process. This is a book that you’ll definitely want to dog-ear the pages on and mark-up with your notes.
2. Balanced view of reverse mortgages. It’s clear the authors are industry insiders with a generally positive view of reverse mortgages. But, to their credit, they do a good job of presenting reverse mortgage pitfalls. A full chapter is devoted to the topic of “Deciding Whether a Reverse Mortgage is Right for You”. Also, useful comments covering specific situations are found throughout the book:
“Not to dissuade you from a reverse mortgage altogether, but if you own a multi-family residence and you’re hurting for ready cash, you may be better off either selling the property or raising the rent on the other units…”
3. The “Part of Tens”. This is a standard feature of Dummies books and basically provides “top ten” lists concerning the subject matter. In this case, three helpful top ten lists are provided:
- “Top Ten What Ifs” (most helpful, in my opinion)
- “Ten Resources for Securing a Reverse Mortgage”
- “Ten Common Mistakes Borrowers Make”
Three Things I Didn’t Like About this Book
1. Scant visual aids. Reverse mortgages are complex - period. Visual summaries (e.g. side-by-side comparisons, flow charts, graphs, etc.) can be especially useful when communicating complex concepts. Reverse Mortgages for Dummies includes only a handful of tables (I counted 6) and no graphs or flow charts in nearly 250 pages of text. More visuals would have been nice to help explain and differentiate concepts such as forward vs reverse mortgages, HECM vs HomeKeeper vs Financial Freedom reverse mortgage products, and the various loan payment options.
2. Not enough discussion of reverse mortgage alternatives. Three separate sections of the book cover options other than reverse mortgages - though much of the information is the same. HELOC loans - home equity lines of credit - are discussed as an option, but not in nearly enough detail. Many seniors want to know the pros and cons of using a HELOC in place of a reverse mortgage and the subject deserves greater attention.
3. Sloppy editing. One of the hallmarks of the Dummies books is the rapid turnaround for bringing a book project from concept to market. In this case, the rush to get to press seems to have resulted in quite a few missing words and incongruous sentences. In one case it seems that a fictional example of a borrower considering different options is left incomplete.
Overall Rating
Overall, this book rates 4 out of 5 stars. It is packed with a wealth of information that you’ll likely refer to often as you first consider and then, perhaps, pursue a reverse mortgage. The book is fairly priced at $16.99, but you can buy it for considerably less through Amazon.com and other online book stores. (The book cover image above is an affiliate link to Amazon.) Also, many public libraries carry books in the Dummies series.
If you’ve read this book, please feel free to leave comments below or cast a vote for how you rate it.
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June 11th, 2006 at 5:17 pm
[…] 2. Lack of focus. The book tries to be both a practical hands-on guide for seniors considering a reverse mortgage and a macro-level treatise on the merits of reverse mortgages. As a practical guide, I’d have to say there are better choices such as Reverse Mortgages for Dummies or the Pocket Idiot’s Guide to Reverse Mortgages. […]