—If mandatory draws are 61 percent of the principal limit, pocket draws can be up to 10 percent. MI is 2.5 percent.
If this makes your head spin, never mind. I had to master it in order to reprogram the HECM calculator on my website, but you don’t, and neither do seniors contemplating a HECM. What should matter to them is what their unique options are, and they can find that on my website, www.mtgprofessor.com.
Jack Guttentag is professor emeritus of finance at the Wharton School of the University of Pennsylvania.
©2013 Jack Guttentag
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