With several years experience in the mortgage industry, I found my nitch when I joined Wells Fargo Home Mortgage in 2006. Wells provided an excellent training ground and helped me build a network of other professionals who enjoy helping families. I teach my experience to financial advisors, tax consultants, real estate agents, and home care specialists. I demonstrate how it protects net wealth. 12 years ago, financial professionals rarely saw past the reverse mortgage stigma. Today, many appreciate how the line of credit option alone is worth the one time cost of the HECM refi. All of this begins with comprehension. My goal is to educate as many people possible.
“All of life is a constant education.” – Eleanor Roosevelt
The decision supporting a reverse mortgage begins with EDUCATION. Whether working with consumers or their trusted advisors, the key is to teach how it works, how it helps, how to minimize costs and how to balance wealth preservation and quality of life. In cases where the reverse mortgage option is decided, it should be a win-win. In a depreciating market, borrowers may keep their home with no mortgage payment and no credit burden. If the loan balance exceeds the value, they continue to win. In an appreciating market, reverse mortgages are a great way to grow equity, adding the the benefit of a liquid line of credit which builds at the same compounding rate as the interest rate on the amount borrowed.
EXAMPLE USING A REVERSE MORTGAGE LINE OF CREDIT FOR RETIREMENT
When retirement funds are limited as in the case of many boomers, a homeowner @ 62nd or better can secure a Line of Credit on their property that will grow at the product’s market interest rate which is the 1 yr Libor index (1.118) plus a market driven margin of about 3%. At this APR of 4.118%, 10,000 in 10 years is worth $18,372 with compounded interest. What this is is future BORROWING POWER! The money grows now for when it’s needed later!
Not only is equity money made liquid, but unlike most retirement funds, using the money does not pay the IRS. Yes, proceeds from a Reverse Mortgage are TAX FREE. There will never be a better time for this.
Please call me today for a personalized illustration.