Potential Benefits of a Reverse Mortgage Loan for Your Clients

• Pay for medical costs, co-pays, deductibles and costs in the coverage gap (also called a “donut” hole”)

• Pay for home repairs and modifications

• Establish a rainy-day fund

• Close retirement cash flow gaps

• Plan and prepay for funeral and burial plots

• Increase cash flow for lifestyle enhancements (e.g., a vacation with the grandkids)

• Pay long-term care insurance premiums or self-fund long-term care

• Purchase a different home that better suits them in retirement (the borrower can generate the required equity, usually 45%-70% of the purchase price,* by bringing the funds to closing — the H4P loan then funds the remainder of the home purchase)

• Refinance a traditional mortgage to eliminate the burden of fixed monthly payments (must pay property charges, like taxes, insurance and maintenance)

• Donate to charity and gift money to family