The Pocket Idiot’s Guide to Reverse Mortgages
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Maybe you’re no Dummy…maybe you’re an Idiot when it comes to reverse mortgages and you’re in a hurry to learn as much as you can as quickly as you can. If so, you might prefer The Pocket Idiot’s Guide to Reverse Mortgages (Alpha Books, 2005, $9.95 USD). This concise and very infomative book (kind of a “Cliff Notes” for reverse mortgages) is authored by Jennifer A. Pokorny, a branch manager with Carteret Mortgage, specializing in reverse mortgages.
Three Things I Liked About this Book
1. Concise and direct. The author’s hands-on experience is reflected in the numerous practical tips she presents and in her “just the facts, ma’am” style of writing. Chapters are brief (about 15 small pages each) and neatly subdivided into main points being covered. Unlike many books where you need to set aside at least an hour of reading time to make progress, you can easily digest this book in 10 or 15 minute chunks without feeling like you’re wasting your time.
2. Reverse mortgage program comparisons. The three brief chapters covering each major type of reverse mortgage (Home Equity Conversion Mortgage, Home Keeper, Cash Account) supplemented by a helpful side-by-side comparison chart in Appendix B provide one of the most useful and understandable comparisons of the different reverse mortgage programs that I’ve found.
3. Tips that are truly practical and useable. Just about every book around claims to provide “practical tips” you can really use. This book delivers. Insider tips and insights on topics such as the appraisal process, loan appllication and approval, and managing financed home repairs are worth much more than the book’s price. Some examples:
- specific things to watch for when you need an FHA appraisal, not just a standard appraisal;
- how best to handle “excess” land if your home sits on a large parcel;
- times when it makes sense to visit the lender prior to visiting the loan counselor; and,
- why you need to fully draw-down a HECM credit line before paying off the loan.
Three Things I Didn’t Like About this Book
1. Not enough FAQs. Chapter one includes a helpful list of nine “Common Questions” that are presented and answered thoroughly and clearly based on the author’s front-line experiences. It would have been useful to include a similar format in each chapter or, alternatively, include an expanded list of FAQs as an appendix.
2. Some of the appendices could have been made more useful. The book includes five different appendices two of which are very helpful (Appendix A “Glossary” and Appendix B “Loan Type Comparison”). The other three are of less value and the space could have been better utilized.
For example, Appendix C is a Sample Loan Comparison (Cost/Yields) spreadsheet “similar to the comparison you will receive when you make an application for a reverse mortgage.” But no direction is provided for understanding/interpreting the figures in the spreadsheet or for assessing which figures are key.
Similarly, Appendix D is a summary of “FHA Property Guidelines”, but doesn’t provide much infomation beyond what is covered in earlier chapters.
3. I really don’t have a number three criticism.
Overall Rating
Overall, this book rates 5 out of 5 stars. It’s a great bargain for the price and a highly recommended read for anyone contemplating a reverse mortgage. But don’t be fooled into thinking that reading this book is all you need to prepare for taking on a reverse mortgage. Keep in mind the key phrase in the book’s title: “pocket guide”. (The book cover image above is an affiliate link to Amazon.)
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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July 28th, 2006 at 12:59 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. […]
November 7th, 2007 at 2:32 pm
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