Unlock Your Home's Equity With A Reverse Mortgage

[@EvanCarmichael]

Great breakdown on reverse mortgages, very informative and helpful! - Lhiamel

[@yosephworku1701]

Lane and Don, thank you so much for such inspiring conversation! I learned a lot about reverse mortgage today and got bright view about it. Lane, when possible, please also invite someone who can explain the use of life insurance as a retirement tool.

[@OneEclecticStyle]

Thanks Lane and Don.

[@AskDonGraves]

Lane, thank you so much for having me on your podcast! It was a pleasure discussing the importance of incorporating reverse mortgages into retirement planning conversations. I hope our discussion provided valuable insights for your audience of financial advisors. Looking forward to connecting again soon! - dg

[@karinmottola9227]

Is this true about a reverse mortgage? The lender actually makes payments to you: you can choose to receive a lump sum, monthly payments, a line of credit. The interest and fees associated with the loan get rolled into the balance each month. That means the amount you owe grows over time, while your home equity decreases. You also have to pay an upfront insurance premium. Usually, this is 2% of your home’s appraised value. You’ll also pay origination fees at closing. You do have the option of rolling these costs into your loan balance, but that means you receive less money.

[@danielhuntington2116]

Baloney...my parents had a reverse mortgage....the fees were steep and it sucked a huge amount of their equity out of there house. A simple equity loan would have worked far better for them for getting their hurricane windows.

[@AskDonGraves]

I absolutely agree that a reverse mortgage used ONLY to get windows is a mistake. Better to have the children chip in a buy the windows or if eligible, get a traditional home equity loan or line of credit and make the small monthly payments. There are 52 retirement income strategies for which a HECM makes sense when incorporating it with other assets. But a Single Use Reverse Mortgage is not one of them.

[@AZ-bx8yi]

Daniel, it sounds like your parents made a decision based on their specific circumstances, which might not be fully apparent. It's hard to believe they would choose a reverse mortgage solely for hurricane windows. I'm curious about a couple of things: Firstly, did they own their home outright? It seems unlikely someone would extract hundreds of thousands in equity just for windows. And if they still had a mortgage, perhaps they were looking to relieve the burden of monthly payments in their later years, prioritizing their comfort over inheritance considerations. It's natural for people to look out for their own interests, especially if they feel unsupported by their family. Maybe if you had been in a position to contribute towards the windows, they might have opted for a different solution. I don't mean to upset you with my questions. My background in finance, insurance, and mortgage has shown me various reasons why people make such choices. And you, being a thoughtful person, probably understand this too, even if it's tough to acknowledge sometimes.

[@Life_of_A_Man]

@@AZ-bx8yi Many older folks take out the loans have no financial sense whatsoever. They're grown and it's their right to do whatever. Sometimes the heir can chip in but they can still do things on their own volition. I personally couldn't put myself or my heirs through a reverse mortgage. I suggest you do the same as me. They come with many stipulations. I'm down to passing on generational wealth. They government should out law them. I'm not about to spend all these years paying for a home only for me to die and they come take the home back. Oh hell no. My children and my grandbabies will reap my benefits. Whose to say if I take one out and get sick. I might have to spend a lengthy stay in the hospital. If I get better...I would come home to nothing but my stuff to the curb. If you are away from your home to long and the reverse mortgage company founds out about it, they will foreclose.

[@imtherapycat]

I'm 67 and have a $105K balance on a home valued at $255K. Am I eligible for a reverse mortgage? What is the interest rate on one? Even if I don't take any money out of the home, will I have any payments to make while I continue to live there?

[@MotorCityEastSide]

So I am 65 and my wife is 52, in Texas I don’t qualify for a reverse mortgage?

[@wildhorses6817]

Yes, a Gray Divorce at 70. Not expected, husband took all of the monies. What a mess, married over 36 years and he has a wealthy widow.

[@wildhorses6817]

A Reverse Mortgage allowed me to remain in my home for now.

[@imtherapycat]

@@wildhorses6817 I appreciate hearing about your experience. I am looking at trying to stay in my home in retirement by delaying the monthly mortgage payments. I too lost all of my assets in a domestic situation not in my control.

[@sfpuppyraiser]

How can I reach Don Graves?

[@FinancialFastLane]

Contact my office and they can provide his contact info. 480-550-6556

[@RobjS-y8o]

If you have paid off your mortgage, no direct beneficiaries to leave money and you are at least 65, then prudent use of your home's equity can make sense.

[@dennisvega6311]

Do you guys have an office to call to? Do you guys help people to get out of reverse mortgage?

[@FinancialFastLane]

Your opions would be to refinance into an new mortgage or to sell the home and pay off the mortgage balance. You could contact Don Graves office to discuss further. hecmadvisorsgroup.com/contact...

[@al77288]

I took a line of credit, and my CU gave me 80% of the value. The closing cost was in house and very cheap.

[@kimvangthivo1184]

Please I need help

[@relicofgold]

If it's a mortgage, do they pay you monthly? If they pay you monthly, are those monthly payments mostly interest and minuscule principal so it takes 30 years to pay you off? Do they pay a penalty if late? Are they required to buy mortgage insurance? It's not a mortgage at all.

[@FinancialFastLane]

It’s a mortgage with special terms. You don’t know what you don’t know.

[@richardwilliam-alt768]

I do not understand why people don't just listen to what Graves and others are saying. It is really all there is to be said to get a great understanding of the product and what it does for a borrower. Instead, they take all of their preconceived ideas about reverse and only try to understand them under that lense. Maddening.

[@bailey9r]

@@richardwilliam-alt768 Government schools. ;

[@ttfweb1]

They are horrible- broke my parents. The people who need these are not of the bent to leverage them well.

[@AZ-bx8yi]

Sir, whatever you're smoking - can I have some?

[@ttfweb1]

@@AZ-bx8yi ZIBL

[@Life_of_A_Man]

Yes, they have the potential to make senior citizens homeless. I would rather my heirs get my stuff not no mortgage company.

[@bailey9r]

@@AZ-bx8yi Why? You want to sound dumb too? ;

[@tanyajoy7246]

In California if you ever received medical, medicare, skilled nursing facilities, any food stamps or government aid takes any asset from inheritance or the senior who is selling. Get a good attorney and if you paid into the system and then the beneficiaries are paid last, I would seriously recommend how to rename, invest and live the rest of your life with loved ones then in a care home that is paid, doesn’t really get paid for the service given, and I’m speaking about the underpaid CNA’s over worked and underpaid. The facility charges government huge bills, $10k a month and doesn’t invest in the property or providers, you should follow the money and banking on those who don’t know or have ability to protect assets. It’s incredible that one can’t see a reverse mortgage could pay for a life insurance company held in a TRUST, or use passive income by just owning a property that is a business and is owned by a separate entity, and still has agency about the profit. I believe everyone should pay their bills and debts, however, I also know people aren’t aware that our hard earned taxes, even if we buy anything, we are contributing. Unfortunately the government and psychology of breaking someone by making the system incredibly difficult to navigate. Retirement is different and in my opinion multigenerational communities will gain the most. Think about it.