Reverse Mortgage Use

The HECM Reverse Mortgage has many ways people use it today.

Consumer

Bankers

I can help when a retiree comes in with a HELOC that needs to be paid in full, but now their income doesn’t support a HELOC refinance
One of your tellers recognizes a great customer is suddenly short on funds. Possible she lost income; could be from a loss of a spouse.

Investment Planners

A Client has structured for every event retirement will throw at them except in home care.
Your client could take out a Reverse Mortgage and leave all proceeds in the “growing” line of credit.
A 65-year-old with a $400,000 house would have a line of credit of $155,000- at age 85 when he or his wife may have health issues the line of credit would then be almost $500,000!

Realtors

Your age 62 and above homebuyers can use the Reverse Mortgage for Purchase to save a little money from the sale of their last home or be able to buy the home they want that was financially out of reach.
A 70-year-old can purchase a $400,000 house by bringing $215,000 (includes closing costs) and the Reverse Mortgage provides the remainder to buy the $400,000 house using the Reverse Mortgage Purchase.

Elder Law Attorneys

Same use as above with investment planners. Your client could take out a Reverse Mortgage during the planning and leave all proceeds in the “growing” line of credit. This idea was on the cover of NAELA (National Academy of Elder Law Attorneys Journal Spring 2018.

In Home Care providers

Same use as Investment Planners except- maybe a client is using 6 hours a week. If their health declines and in a year or two they were needing 40 hours a week, they could have taken out the Reverse Mortgage 3 years prior. Using the 65-year-old with the $400,000 house. In just 3 years the credit line would have gone from $155,000 to $175,000. Also, if they set it up to pay monthly, the amount in the credit line still grows as its waiting to be paid out each month!

Mobility Specialists

A Reverse Mortgage use could supply the funds to make home repairs, widen doorways install grab bars, wheelchair ramps, bathtubs, stair lift, or elevator or anything else to make your clients be able to Age in Place!