HomeWho I Help
Who I Help
Four kinds of people. One honest answer.
A reverse mortgage isn’t limited to one kind of client or one kind of situation. Here’s how it can help each of the groups I work with.
1
For homeowners
You live in the home.
Four ways it can help
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2
For adult children
You’re helping a parent.
Care, income, the mortgage
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3
For Realtors
Your buyer has cash.
About 60% more home
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4
For financial planners
Your client has a plan.
The house as a buffer asset
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1
For homeowners
Already home. Four ways it helps.
If you’re already living in your home, a reverse mortgage can help in a few ways:
1
Retire your current mortgage payment to free up room in your budget
Property taxes, homeowners insurance, HOA dues and upkeep remain yours.
Draft: compliance line, Todd’s OK owed
2
Establish a credit line to draw from in an emergency, or use it as a “buffer asset” in down-market years to avoid drawing down your investment accounts
3
Set up a term payment early in retirement so you can delay Social Security for a higher benefit later
4
Set up a lifetime “tenure” payment — a fixed amount guaranteed for life
Draft: Todd to confirm, as written
Never locked in
Lifetime
⇄
Credit line
⇄
Term
One of the great benefits of the FHA-insured HECM is that you can change how you receive your funds during the life of the loan. If you started with a lifetime guarantee, you can switch to a credit line, or to a term distribution — all for a cost of $20 per change. You’re never locked into one type of distribution.
Todd and his mom
2
For adult children of aging parents
When the decision lands on you.
As parents age, their needs can change — and you may be the one stepping in to help with the financial decisions. A reverse mortgage can help a parent age in place by covering the cost of in-home care, provide the extra income needed to get by, or pay off an existing mortgage altogether.
3
For Realtors
Same cash buyer. A better house.
When your “cash clients” can’t find what they’re looking for at their price point, a reverse mortgage can help them purchase about 60% more home than they could with cash alone — the difference, for example, between a $1,000,000 house and a $600,000 “cash-only” condo.
“Cash-only” condo
$600,000
With a reverse mortgage
$1,000,000
4
For financial planners
The house, inside the plan.
A reverse mortgage is a valuable tool as part of a long-term financial plan:
1
Eliminate sequence-of-withdrawal risk by using the home as a “buffer asset”
2
Draw from the home instead of taking Social Security early
3
Prevent your client from ever needing me as their “last resort”
Everyone at the table
One conversation. Everyone in it.
I take an educational approach to this product, and try to pull in all of the stakeholders in to the transaction. In addition to the clients, it means I try to talk with any of their adult children, and the financial planner.
If everyone understands how the loan works, “why” this is potentially the right path for mom and dad, and “what happens when they die,” then all of the myths and preconceived ideas of what a reverse mortgage is, disappear.
The clients
Their adult children
The financial planner
Todd
Whichever door you’re at, start here.
Read the free book first, or book a call and bring whoever else should hear it.
Or call or text