Financial Planners Looking at Reverse Mortgage
Even with the growing popularity of reverse mortgages, not a lot of financial planners are rearing their clients to obtain one. According to a couple of articles that were published in Financial Planning, research has been done that shows favorable findings regarding the retirees who sign up for reverse mortgage loans.
The originators of reverse mortgages are well-aware of these facts, but transferring it over to financial planners has proven to be a challenge. What financial planners need to know about reverse mortgages is that it could potentially help preserve their clients’ portfolios. Reverse mortgage originators are worried that telling financial planners about this would create a fine line.
Originators have been coming up with an approach to financial planners and that’s to provide them with enough evidence, not all of the information, especially since they don’t have all of the answers; simply presenting them with the benefits that their clients could receive if they decided to get reverse mortgage loans.
A lot of the momentum behind people signing up for reverse mortgages is because of the increased public awareness about them – thanks to all of the marketing that was done by major banks. Surprisingly, there are still financial planners who are unaware about the recent research regarding reverse mortgages.
To make a change in this matter, reverse mortgage originators are seeking to educate the financial planners about how a reverse mortgage can help their own businesses, as well as their clients’ portfolios. In the past, it was believed by financial planners that HECM was too expensive, and many of them still believe that it is. With all of the prestigious papers that have published research on reverse mortgage, it could help to persuade financial planners otherwise. This may take a while to change their perspectives about reverse mortgages, but there have been some changes already in the industry with progressive-minded financial planners.
Reverse mortgages have had a lot of evidence that proves HECM to be a great wealth preservation tool.
Nationally recognized homeowner advocate and economist Martin Andelman believes: “Reverse Mortgages Are A Real Good Thing For Your Cash. I’ve seen few things in my life as misunderstood or poorly understood as reverse mortgages, and the more I’ve learned about them, the more impressed I’ve become. In fact, I’ve come to like them so much that at 52, I’m almost looking forward to being ten years older so I can qualify” Martin stated.
Keep the reverse mortgage in your back pocket in case you need it, or because you outlive your plan and run out of cash, want to invest in a business with no repayment risk, put a grandchild through college, or any responsible use. When you really need one, you won’t be able to qualify for one. HELOCS no longer exist, and you don’t have to ever repay a reverse mortgage loan unless you want to, while you and your spouse survives. You can make no payment except for taxes and insurance, interest only payments or anything you want. Flexibility and the ability to tap into your home’s equity whenever you need to is what you need to focus on. It’s just a mortgage that has the most flexible repayment terms of any loan, ever. Your heirs still keep any unused equity and home appreciation, and the amount you can borrow increases as you age. In that regard, it is no different than if you had a traditional mortgage when the kids inherited…except no downside risk to your heirs for a bad real estate market. If home prices drop below what’s owed for some reason, your heirs can walk away without repaying the underwater portion.
Martin said “ I recommend them for all seniors who qualify. How else do you plan on accessing your home’s equity in an emergency or when you need instant access to money? I don’t know what’s coming at me over the next 30 years, so it just makes sense to get a Reverse Mortgage, unless of course you are Bill Gates. See my other articles on the pros and cons of Reverse Mortgages on http://nowitcounts.com/going-forward-reverse-mortgage/ where I break them down for you and make them easy to understand.”