Reverse Mortgages For Financial Advisors
Why Financial Advisors are Re-thinking Reverse Mortgages
As their trusted advisor, you are responsible many times for not only the life savings but shaping the financial future of your clients. Many times your clients are looking to you for solutions and answers often involving home and mortgage advice.
A Home Equity Conversion Mortgage (HECM) commonly referred to as reverse mortgage is a way for borrowers age 62 or older to unlock the equity in their home by turning it into tax-free cash* without having to make any monthly mortgage payments**. And thanks to the flexibility in loan design, recent academic research and the many program changes, including lower costs, a reverse mortgage may be a suitable cash flow solution for:
- Delaying Social Security and pension payouts
- Drawing on tax-free funds to reduce tax liability
- Postponing drawing down retirement assets, giving assets more time to grow
- Increasing cash flow by eliminating monthly mortgage payments
- Accessing a low cost, non-cancelable, GROWING line of credit
- Protecting portfolio performance in a down market
- Creating annuity-style payments using home’s equity
- Replacing cash reserves
- Paying for health care costs
- Purchasing a home which reduces the cash amount they have to put down to “down-size”.
HECM Line of Credit: A Unique Way to Extend the Life of Your Client’s Nest Egg
By establishing a lower-cost HECM credit line your clients can:
- Use your proceeds now or access them in the future when they want or need them.
- They are charged interest only on the proceeds they take.
- A reverse mortgage line of credit cannot be reduced or revoked, as long as the terms of the loan are met; and
- The unused line of credit grows monthly*** independent of any change in home value, giving them more available funds in future years that may prove valuable as clients’ savings are depleted.
Credit Line Growth:
A very unique feature of the HECM Reverse Mortgage is the Credit Line Growth Rate. The unused portion the credit line compounds monthly at the initial interest rate plus 1.25%!
* Consult your financial advisor and appropriate government agencies for any effect on taxes or government benefits.
** You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance and maintain the home according to Federal Housing Administration requirements.
*** The reverse mortgage loan balance grows at the same rate as the line of credit. The line of credit growth is only a benefit if the line of credit is not used to allow for the line of credit to grow over a significant period of time and then the funds are accessed during the life of the loan.
Just some of our happy clients
"I am very grateful to have been able to work with you and your associates in obtaining a reverse mortgage. My financial planner said that I was the perfect candidate and recommended using you to expedite everything. It went very smoothly and my income stream provided a preservation of my portfolio which has eased my mind. Thank you so much."
"Thank you for taking care of this for my mom, this is just what she needed to give her some financial breathing room."
"We selected On Q Financial Services after a recommendation from our financial advisor. We received a thorough education in not only the process but the important nuances that should be considered before making a final decision. On Q respected our need for detailed communication and also provided an understanding and insight into the process. We look forwards to recommending On Q Financial Services to our professional and personal associates, not only for your firm’s expertise but more importantly, the terrific personnel with whom we dealt along the way."
"A few years ago I was living in a house that did not suit my needs. With the assistance of Samantha Alspaugh, I signed up for my first Reverse Mortgage line of credit. Using this relatively low interest loan for construction funds enabled me to build a new house appropriate for my stage in life.
When my new house was completed, I sold the prior house and paid off my first Reverse Mortgage. I moved into my new home and then contacted Samantha for my second Reverse Mortgage Line of credit. My new home has some title and ongoing quirks. In spite of these issues a determined Samantha stuck with it and ultimately arranged my second Reverse Mortgage Line of Credit.
I first used this loan as a bridge loan, then I paid it almost off (not quite zero to keep the loan open). Now thanks to the financial flexibility offered by a Reverse Mortgage Line of Credit, I live in my dream home debt free and watch the line of credit funds available to me increase on a regular basis. Most importantly, I have peace of mind knowing that I have emergency funds available to me anytime just a phone call away.
Life is good"
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