Using home equity to preserve your retirement portfolio can be a viable option for many senior homeowners. Phil Walker is a speaker, author, and 30-year veteran of the financial services industry. He is the Vice President of Strategic Partnerships, Retirement Strategies Division at Finance of America Reverse LLC. His experience as a retirement strategist includes stops at MetLife, Morgan Stanley, Smith Barney, and Merrill Lynch, a featured contribution to Financial Advisor Magazine (“The Boomer Effect”), and frequent speaking engagements with the Financial Planning Association. Phil Walker has some insightful information about including home equity as an asset in a client's retirement portfolio.
Home equity is another asset source apart from investment funds that can provide reinforcement to your client's investment portfolio. Advisors Mortgage can show you how to structure your client's investments utilizing home equity as clients retain their investment assets, improve retirement planning, and improve outcomes. We do this with the reverse mortgage proposal which outlines cash out, line of credit (where applicable), and closing costs.
THE REVERSE MORTGAGE JUMBO, A PROPRETIARY PRODUCT FOR HIGHER-VALUE HOMES
Jumbo reverse mortgages are available on homes valued up to $10 million and maximum loan amounts up to $4 million. FHA's HECM, Home Equity Conversion Mortgage, has a maximum loan amount of $1,089,300 so for those homes valued much higher, it makes sense to take a look at the jumbo/proprietary reverse mortgage. Rates are higher than the HECM, but closing costs are lower as there is no mortgage insurance on these loans. Higher-value homes will be better served with the proprietary jumbo reverse mortgage as cash out numbers can often be higher. There is also a proprietary product with a growing line of credit.
Give us a call, and we'll provide a free reverse mortgage proposal comparing the FHA HECM with the proprietary jumbo reverse mortgage.
Questions? Advisors Mortgage 631-804-9044 or 888-843-9797
Dr. Wade Pfau is a financial expert who has written a book on reverse mortgages geared from a financial planner's perspective. Dr. Pfau's book on reverse mortgages, Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement (The Retirement Researcher Guide Series) deals with finding ways to build strong retirement plans. Who is Dr. Pfau? He is the founder of Retirement Researcher, an educational resource for individuals and financial advisors on topics related to retirement income planning. Learn more about Dr. Pfau here: https://retirementresearcher.com/about/wade-pfau-bio/#:~:text=Wade%20is%20a%20past%20selectee,Icons%20and%20Innovators%20by%20InvestmentNews.
"Dr. Wade Pfau is a professor of retirement income in the Ph.D. in Financial and Retirement Planning program at the American College of Financial Services. He is also co-director of the New York Life Center for Retirement Income. A prolific writer and researcher, Wade has authored papers and books on a wide spectrum of retirement-related topics, including in-retirement withdrawal rates, optimal asset allocations for retirement, and the role of annuities in retirement portfolios.
He is a two-time winner of the Journal of Financial Planning's Montgomery-Warschauer Award, a two-time winner of the Academic Thought Leadership Award from the Retirement Income Industry Association, and a best paper award winner in the retirement category from the Academy of Financial Services. His latest book, part of the Retirement Researcher Guide Series, is called Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement.
Dr. Pfau holds a doctorate in economics and a master's degree from Princeton University and Bachelor of Arts and Bachelor of Science degrees from the University of Iowa. He is also a Chartered Financial Analyst". https://www.morningstar.com/articles/980620/article
VIDEO BY DR. PFAU: https://www.youtube.com/watch?v=clGhS9euIc0
One day, I was searching online to ascertain what percentage of our retirement wealth is tied up in our homes. Did you know that homeownership is the largest source of wealth among families in America? That is when I found Dr. Wade Pfau:
"Home equity represents about 66% of the average retired American’s wealth, so using it as a potential source of funds if you’re strapped for cash makes sense — even if costs are higher now."
“Research in the financial planning profession consistently shows that reverse mortgages can improve retirement planning outcomes.”
REQUIREMENTS FOR OBTAINING A REVERSE MORTGAGE
* Must be at least 62 years of age (some proprietary products begin at 55)
* Must reside in the home as your primary residence at least 6 months of the year
* Acceptable property types: 1-4 single family homes, condos, co-ops in New York state, and approved manufactured homes, multi-family homes. You must reside in one of the multi-family units as your primary residence.
* Condos: Condos must be FHA approved for single-unit approval. Proprietary jumbos must also be approved for single-unit approval. The entire condominium complex does not need approval.
* Must continue to pay taxes, insurance, and all fees associated with your residence such as HOA fees, common charges where applicable. and maintenance fees for co-ops, etc.
* Receive mortgage counseling is required on all reverse mortgages with a HUD-approved counselor whether FHA HECM or Jumbo Proprietary reverse mortgages.
BENEFITS OF HAVING A REVERSE MORTGAGE
ADVISORS MORTGAGE GROUP, LLC., WE TAILOR LOANS TO MEET YOUR NEEDS -Branch NMLS 1833015, 3265 Merrick Road, Wantagh, NY 11793 - Phone: 888-843-9797 or direct: 631-804-9044 - Licensing: CA: Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; FL; GA Residential Mortgage Licensee; NJ: Licensed by the New Jersey Department of Banking and Insurance; Licensed Mortgage Banker –OH; PA; TX. www.nmlsconsumeraccess.org