At the Eden Prairie Chamber of Commerce, we recently had the pleasure of speaking with Dominic James DesMarais from Fairway Independent Mortgage Corporation NMLS#2289. With a career spanning 27 years in the mortgage industry, Dominic shared his insights on home equity conversion mortgages (HECMs) and how they can benefit seniors looking to enhance their retirement. Here is an in-depth look at our conversation. 

Getting to Know Dominic DesMarais 

Dominic’s journey in the mortgage industry is both rich and diverse. “I am Dominic DesMarais. I have been doing mortgages for 27 years,” he begins. “I grew up with depression-era parents, and my dad was born in 1912. My mother was born in 1919, so I got a little different perspective.” This unique background, coupled with his passion for numbers and people, shaped his approach to mortgage advising. 

Dominic’s dedication is evident in his daily routine. “I get up at 4:30 every morning. Like this morning, I was in the office at 5:00 AM. I have many clients I see today. I want every presentation to be perfect for my clients and my recommendations on point. So, I am driven to do that.” His commitment to delivering top-notch service is a testament to his dedication. 

What is a Home Equity Conversion Mortgage? 

Dominic is particularly passionate about HECMs, a topic he has been enthusiastic about for a decade. “The HECM program is the federal government’s reverse mortgage loan,” he explains. “It has been around since 1989, so it has been about 35 years. It was created under Reagan, implemented by Bush senior, and redone by Obama with bipartisan support.” 

HECMs allow seniors aged 62 or older to tap into their home equity, providing a valuable source of funds during retirement. “The interesting thing is I’m using this about 60% of the time to actually make purchases of homes that are better for the person to live in,” Dominic notes. This could mean upgrading to a home that is more accessible or better suited to their needs. 

HECM vs. Traditional Mortgages 

Dominic highlights the key differences between HECMs and traditional mortgages. “With a traditional mortgage, you have to make a mortgage payment every single month of principal and interest,” he explains. “With the HECM, you never owe what the loan grows to until 150 years of age or you no longer live in the home.”  

*There are some circumstances that will cause the loan to mature and the balance to become due and payable. The borrower is still responsible for paying property taxes and insurance and maintaining the home (and HOA fees, if any). Credit subject to age, property, and some limited debt qualifications. Program rates, fees, terms, and conditions are not available in all states and subject to change. 

This feature makes HECMs particularly appealing for seniors who want to improve their cash flow without the burden of monthly payments. “With a HECM, you never have a principal interest payment ever, unless you want to make one,” Dominic emphasizes. 

*This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation. 

Flexibility and Benefits of HECM 

The flexibility of HECMs is another key advantage. “Most people never make a payment unless they’re doing it for tax reasons,” Dominic says. “Just like this morning, I showed somebody how they can save $60,000 in federal income taxes over the term of their retirement by using a HECM for purchase.” 

*This advertisement does not constitute tax advice. Please consult a tax advisor regarding your specific situation. 

He also explains the non-recourse feature, which provides peace of mind for borrowers and their heirs. “The biggest misperception is that if you owe more money to your home than its value, your kids are going to inherit the debt,” Dominic clarifies. “This is a non-recourse loan, which means the federal government will pick up the difference.”  

*This advertisement does not constitute financial advice. Please consult a financial advisor regarding your specific situation. 

Using HECM for Purchase 

Dominic elaborates on how HECMs can be used for purchasing new homes. “Let’s say a couple in their 60s is going to clear $250,000 from the sale of their home,” he illustrates. “If they bring that $250,000 in, they can buy a $375,000 townhome with no principal interest payment for the rest of their lives.” 

*The required down payment on your new home is determined on a number of factors, including your age (or eligible non-borrowing spouse’s age, if applicable); current interest rates; and the lesser of the home’s appraised value or purchase price. 

This option not only helps seniors downsize to more manageable homes but also allows them to maintain financial flexibility. 

The Future of HECMs 

Looking ahead, Dominic is optimistic about the future of HECMs. “I think most people are not aware of what it is,” he says. “Once people have the education, they are using it. It is going to be a great growth piece.” 

He believes that as more people become informed about the benefits of HECMs, their use will increase, offering valuable financial options to seniors. 

Advice for Those Considering HECMs 

Dominic’s advice for anyone considering a HECM is straightforward. “Get together with your financial advisor and make sure they understand the HECM,” he recommends. “Most financial advisor plans I see are missing two things: transportation and home equity. Home equity needs to be part of the comprehensive plan.” 

Dominic DesMarais deep knowledge and enthusiasm for helping seniors navigate their home equity options make him a valuable resource for those considering HECMs. His commitment to education and client service underscores the significant benefits these mortgages can offer in retirement planning. 

For more information or to explore how a HECM might benefit you or a loved one, contact Dominic at Fairway Independent Mortgage Corporation. 

Dominic James DesMarais 

Branch Manager | NMLS 379194 

Fairway Independent Mortgage Corporation 

4445 W 77th St, Suite 105 

Edina, MN 55435 

Office# 952-797-6032 

dominicd@fairwaymc.com 

https://teamdominic.com/ 

If you're interested in having an interview for a member blog, please email Grace Leapaldt at grace.leapaldt@epchamber.org for more details!