2 minute read
A Powerful And Flexible Tool
3 Introduction 4 Three Must-Read Articles 6 Reverse Mortgage Loans 101 8 The Three Buckets Of Retirement Income 9 A Powerful And Flexible Tool 10 Buying A New Home With A Reverse Mortgage 11 Reverse Mortgage Line Of Credit Growth 12 The Coordinated & Non-Coordinated Strategy 14 Comparing National Long-Term Care Costs 15 Planning For Long-Term Care (LTC) And Medicaid Issues 16 Flexible Options 17 Delaying Social Security Draw Dates 18 Three Ways HECMs Help With Tax Planning 19 Why Work With A Fairway Reverse Mortgage Planner?
Now more than ever,
borrowers are using reverse mortgage loans as a retirement planning tool to maximize cash flow, reduce taxes, and minimize risks.*
is a question that weighs on the minds of many people nearing or in retirement. There are many unknowns that come into play, such as: 1 Longevity — how long will they live 2 Market cycles — how will the market perform during retirement, and 3 Contingencies — what financial shocks will they face in retirement (e.g., medical care). As a financial professional, you want to give your clients the best chance at financial success. That’s why it’s important for you to explore all options and strategies available to them. One often overlooked or dismissed opportunity is the strategic use of home equity. The home is simply too large of an asset to ignore. By incorporating home equity planning and reverse mortgages into your practice, you could help make the lives of your older-adult clients better, give them financial flexibility to navigate uncertainties in retirement, prolong the life of their assets under your management, and much more. Reverse mortgages are a valuable planning tool in the right situation, and they should be explored and embraced by advisers.
What is a reverse mortgage?
A Home Equity Conversion Mortgage (HECM, commonly called a reverse mortgage) is a federally insured home loan that allows homeowners aged 62 and older to convert a percentage of their home equity into cash, fixed monthly advances, or a growing line of credit. The borrower can defer repayment of the loan balance so long as they live in the home and pay the property-related taxes, insurance, and upkeep expenses.
Most, but not all, reverse mortgages today are HECMs, the only reverse mortgage insured by the Federal Housing Administration (FHA). This brochure talks about HECMs only
DID YOU KNOW? The youngest borrower’s age (or non-borrowing spouse’s age), the interest rate, and the home value all factor into how much of the home’s equity the borrower can initially access with a HECM.
You can get an idea of how much your client may be able to borrow by using our reverse mortgage calculator at
