#299: Using a reverse mortgage to ease brother’s buy-in

By: John Metcalf

August 25, 2026

REVERSE MORTGAGE CAN ENABLE TRUE BROTHERHOOD

Your older brother, a widower in his late seventies, had originally been planning to “age in place.” He’d even been going to seminars about reverse mortgages (so that he could remodel the house to make it possible to live on one floor). Unfortunately, following a number of recent health scares, he’s come to terms with the fact that managing a large home, even after remodeling, is no longer going to be feasible. He’s made the decision to buy into a nearby retirement community that has both assisting living and full-care options (should those become needed).

Because you’re the only one of the siblings who lives nearby, you’ve tried to help him with this difficult life transition. Your brother has found the place he wants and would like to get on their waiting list. Problem is, he lacks sufficient means to cover the upfront buy-in for the new place before this one is sold. You agree that community care-type living is his best choice, and you’re more than willing to oversee the listing and selling of his home. However, as much as you’re devoted to helping, you don’t have that much in liquid resources to offer and are reluctant to liquidate assets at this point in the stock market (there would also be severe tax consequences). Meanwhile, for your brother, the pressures are mounting, with many decisions to be made about which furnishings he should sell and which to take with him. It’s all you can do to help him keep up with all those medical tests and appointments!

Since your brother had already been considering a reverse mortgage, you might consider tapping into the equity in your own home in the form of a reverse mortgage, making a lump sum withdrawal from your own equity to pay the continuing care community fee on behalf of your brother. It would be a good idea to consult tax and estate planning advisors (in addition to the reverse mortgage professional) in order to properly structure the “family loan” you’d be making to your brother. The general idea is that when his home ultimately is sold, a portion of the proceeds can be used to “restore” the equity in yours.

These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

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Aging in Place with Confidence: How a Reverse Mortgage Can Help You Navigate Retirement’s Biggest Challenges

By: John Metcalf

August 25, 2026

Retirement should be about enjoying the life you’ve worked so hard to build, not worrying about whether your income will keep up with rising expenses. Yet for many homeowners, today’s

retirement landscape presents new financial challenges. Social Security changes, inflation, healthcare costs, and the desire to remain safely in the home they love can place significant pressure on a fixed income.

Fortunately, one of the largest assets many retirees have is also one of the most overlooked: their home equity.

A reverse mortgage can provide a financial solution that helps retirees create flexibility, maintain independence, and improve their quality of life.

Keeping Up with Social Security and Fixed-Income Budgets

Millions of retirees depend heavily on Social Security. While annual cost-of-living adjustments can help, they don’t always keep pace with increasing expenses such as:

• Property taxes

• Homeowners insurance

• Utilities

• Healthcare costs

• Prescription medications

• Food and transportation

For homeowners age 62 or older who qualify for a Home Equity Conversion Mortgage (HECM), a reverse mortgage can convert a portion of home equity into tax-free loan proceeds without requiring

a monthly mortgage payment, as long as loan obligations continue to be met. FHA HECM loans are available to homeowners age 62 and older.

Rather than relying solely on monthly retirement income, many retirees use their housing wealth to supplement cash flow and reduce financial stress.

Creating More Flexibility in Retirement

Every retiree’s situation is unique.

Some want additional monthly income.

Others want access to a line of credit for unexpected expenses.

Some simply want to eliminate an existing mortgage payment to improve monthly cash flow.

A reverse mortgage can provide options that allow homeowners to use their equity in ways that best fit their retirement goals, helping create greater financial flexibility while continuing to live in the

home they love.

Funding Smart Home Safety Upgrades

One of the greatest benefits of remaining in your home is maintaining your independence, but many homes were never designed with aging in mind.

Home modifications can significantly improve both safety and comfort.

• Walk-in showers

• Grab bars

• Wheelchair ramps

• Wider doorways

• Lever-style door handles

• Improved lighting

• Stair lifts

• Non-slip flooring

• Smart home technology

These improvements often allow homeowners to stay safely in their homes longer while avoiding the high costs associated with assisted living or long-term care facilities.

A reverse mortgage can provide access to funds that help pay for these important improvements.

Fall Prevention Starts at Home

Falls remain one of the leading causes of injury among older adults.

Simple home improvements can dramatically reduce those risks.

• Removing trip hazards

• Installing better lighting

• Adding handrails

• Improving bathroom accessibility

• Replacing uneven flooring

• Adding motion-sensor lighting

Instead of postponing these improvements because of budget concerns, homeowners may be able to leverage a portion of their home equity to complete them now.

Supporting Mobility and Independence

As mobility needs change, many homeowners face new expenses that weren’t part of their retirement plan.

• Power lift chairs

• Mobility scooters

• Wheelchair accessibility modifications

• Adjustable beds

• Accessible kitchen upgrades

• Home monitoring systems

These investments aren’t simply conveniences, they can help preserve independence and allow retirees to continue living comfortably in familiar surroundings.

Peace of Mind During Retirement

Financial confidence often comes from having options.

Rather than watching savings decline or worrying about unexpected expenses, many retirees appreciate having additional financial resources available when needed.

• Supplement retirement income

• Eliminate required monthly mortgage payments

• Fund home safety improvements

• Prepare for unexpected healthcare costs

• Preserve retirement savings for other purposes

• Support aging in place with greater confidence

The Bottom Line

Retirement has changed.

Longer life expectancies, rising living costs, and increasing healthcare expenses mean many homeowners are looking for smarter ways to use the wealth they’ve built over decades. Your home may be more than just where you live, it may also be one of your greatest financial Resources.

A reverse mortgage isn’t the right solution for everyone, but for many retirees it provides an opportunity to improve cash flow, enhance home safety, and enjoy retirement with greater peace of Mind.

If you’re wondering whether a reverse mortgage could fit into your retirement strategy, speaking with a knowledgeable reverse mortgage professional can help you understand your options and determine whether it’s the right solution for your unique financial goals.

Don’t Leave Martha’s Vineyard Because of Money

By: John Metcalf

August 24, 2026

A reverse mortgage may help you stay where your memories live.

For many people, Martha’s Vineyard isn’t just where they live — it’s where life happened.

It’s the glow of Illumination Night, reaching for the brass ring at the Flying Horses, afternoons at the Ag Fair, fireworks over Oak Bluffs, a late-night run to Back Door Donuts, a grandchild seeing the Island for the first time. These aren’t just memories. They’re what makes this place home.

And yet, for many longtime Vineyard homeowners, staying has quietly become the hard part — not because they haven’t built enough wealth, but because so much of it is sitting in a house that keeps appreciating while their income doesn’t. Property taxes climb. Insurance climbs. A winter of oil heat and storm repairs adds up in a way it never used to. At some point, the question stops being “can I afford to keep living here” and starts being “do I have to sell to find out.”

There’s often another option first.

A Home Equity Conversion Mortgage (HECM) — a reverse mortgage — lets homeowners put a portion of their home’s equity to work without selling the home they’ve spent a lifetime building.

Turns Out You Can Spend Equity

Most Vineyard homeowners didn’t get here by accumulating cash — they got here because a house they bought decades ago quietly became worth a fortune. The wealth was never the problem. Reaching it was.

A HECM converts a portion of that equity into loan proceeds — generally tax-free* — that can go toward everyday cash flow, eliminate an existing monthly mortgage payment,** or sit as a growing line of credit for whatever comes next. The home stays yours. You keep living in it.

For a lot of families, this changes the entire question. Instead of “do we sell because the bills got hard to manage,” it becomes “we already have what we need — it was just tied up in the walls around us.”

Turns Out Equity Can Pay for Care, Too

The cost that catches people off guard isn’t usually the mortgage or the taxes — it’s care. A caregiver a few days a week. A stair lift. Someone to help with the things that used to be easy.

Most people assume the house has to be sold to cover it. Often, the house can pay for it instead — a portion of the equity can fund in-home care that lets someone stay independent, in their own kitchen, on their own routine, near the neighbors they’ve known for thirty years. It’s not just about comfort. It’s about not having to trade the home for the care.

A reverse mortgage isn’t the whole answer to long-term care. But it’s often the piece that makes staying possible in the first place.

Turns Out Staying Put Can Save on Taxes

Selling comes with its own surprise, and it’s one people rarely see coming until it’s too late to plan around.

A lot of Vineyard homes were bought decades ago for a fraction of what they’re worth now. Current IRS rules generally exclude up to $250,000 of gain on a primary residence sale ($500,000 for many married couples) — but plenty of Vineyard properties have appreciated well past that. Sell simply to free up income, and the tax bill on the difference can be steep — a bill that staying, and using equity instead, may let a homeowner delay or avoid entirely. Every situation is different here, so this is worth a real conversation with a tax professional before any decision gets made.

It’s About Staying

Reverse mortgages used to be seen as a last resort — something you turned to only when nothing else was left. That’s not how many financial planners think about them anymore. Used well, a HECM sits alongside Social Security, pensions, and investments as one more piece of a retirement plan, not a replacement for the rest.

What it tends to protect, more than anything, is the ability to keep saying yes: yes to one more summer, one more Fair, one more Illumination Night with the grandkids on the porch.

The better question was never “how much is my home worth.”

It’s “how do I use what I’ve already built to stay for more of this.”

After a lifetime spent building that equity, it may be time to let it build something back — more summers, in the place that’s already yours.

*Please consult a tax advisor.

**Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.

The HECM Eight: Eight Powerful Ways a Reverse Mortgage Can Strengthen Your Retirement

By: John Metcalf

August 4, 2026

When most people hear the words reverse mortgage, they think of a loan designed for someone who is short on cash. While supplementing retirement income was the original intent of the Home Equity Conversion Mortgage (HECM), today’s HECM is far more than an income solution.

A HECM can turn dormant home equity into a strategic financial planning tool—helping reduce taxes, preserve investment portfolios, manage healthcare costs, and create greater flexibility throughout retirement.

Here are The HECM Eight—eight ways a HECM can enhance a retirement plan.

1. Supplement Retirement Income

The original purpose of the HECM remains one of its greatest strengths.

A borrower can receive guaranteed monthly tenure payments for as long as they live in the home, creating an additional source of cash flow without selling investments or taking larger retirement account withdrawals.

2. Eliminate the Monthly Mortgage Payment*

One of the quickest ways to improve cash flow is by eliminating an existing monthly mortgage payment.*

Without a monthly principal and interest payment:

Less money needs to be withdrawn from investment accounts
Retirement portfolios have a greater opportunity to remain invested and grow
Reduced taxable withdrawals may improve overall tax efficiency

For many retirees, this simple strategy significantly improves monthly cash flow.

3. Purchase Your Forever Home

A HECM isn’t only for homeowners staying put—it can also be used to purchase a new home.

Whether you’re:

Downsizing
Upsizing
Moving closer to family
Relocating to a retirement community

A HECM for Purchase can preserve retirement assets while helping you buy the home that best fits your lifestyle.

4. Fund Healthcare Expenses

Healthcare is often one of retirement’s largest unknowns.

HECM proceeds can be used to:

Self-insure against future healthcare costs
Pay long-term care insurance premiums
Cover elimination periods before benefits begin
Help pay for home care, assisted living, or unexpected medical expenses

Using home equity strategically may allow retirees to avoid selling investments during unfavorable markets.

5. Increase Portfolio Longevity

Research has demonstrated that coordinating home equity with investment withdrawals can improve portfolio sustainability.

Among the strategies are:

Delaying HECM use until later in retirement
Drawing from home equity during market downturns instead of selling depreciated investments
Using a growing HECM line of credit as a reserve asset
Coordinating withdrawals to reduce sequence-of-returns risk
Utilizing deferred tenure payments to create future guaranteed income

Rather than replacing the investment portfolio, a HECM can complement it.

6. Enhance Social Security Strategies

A HECM can create flexibility around Social Security decisions.

Potential strategies include:

Delaying Social Security to maximize lifetime benefits while temporarily replacing income with HECM proceeds
Replacing a portion of lost household income after the death of a spouse

This flexibility can significantly improve long-term retirement income planning.

7. Improve Tax Efficiency

One of the most overlooked advantages of a HECM is its potential role in tax planning.

Since HECM loan advances are generally not taxable income, they may help retirees:

Avoid large taxable withdrawals from retirement accounts
Bridge years requiring unusually high spending
Help fund Roth conversion tax liabilities without further reducing investment assets
Coordinate tax-free** tenure payments as part of a broader retirement income strategy

For many retirees, thoughtful coordination between home equity and retirement accounts can reduce lifetime tax costs while preserving more wealth.

8. Provide Financial Flexibility During Divorce

Divorce after age 62 presents unique financial challenges.

A HECM can help:

One spouse remains in the marital home by buying out the other spouse’s equity
Both spouses purchase replacement homes using a Lifestyle Home Loan*** or HECM for Purchase strategy
Preserve retirement assets during an already difficult financial transition

It provides additional options when traditional financing may be difficult or undesirable.

The Bottom Line

A Home Equity Conversion Mortgage is no longer simply a “loan of last resort.”

When coordinated with investments, taxes, healthcare planning, Social Security, and housing decisions, it becomes a versatile retirement planning tool.

The most successful retirement plans don’t rely on a single asset. They coordinate multiple resources—including home equity—to improve flexibility, preserve wealth and help retirees make informed financial decisions.

A HECM isn’t always the right solution for everyone, but when incorporated into a comprehensive financial plan, it may become one of the most valuable retirement planning tools available.

*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.

**Please consult a tax advisor.

***The Lifestyle Home Loan is a Home Equity Conversion Mortgage for Purchase.

Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Connecticut Mortgage Lender License ML-1025894. Florida Mortgage Lender Servicer License MLD1827. Maine Supervised Lender License 1025894. Massachusetts Mortgage Broker and Lender License MC1025894. Licensed by the New Hampshire Banking Department, Mortgage Banker License 1025894MB. Licensed by the New Jersey Banking and Insurance Department. New Jersey Residential Mortgage Lender License 1025894. Pennsylvania Mortgage Lender License 72932. Rhode Island Lender License 20163229LL. Rhode Island Loan Broker License 20163230LB. Virginia Mortgage Broker and Lender License, NMLS ID #1025894 (www.nmlsconsumeraccess.org). Subject to credit approval. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. For licensing information, go to:www.nmlsconsumeraccess.org #4514571713

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#298: Reverse mortgages for the high net worth

By: John Metcalf

July 29, 2026

TAKE IT FROM YOUR UNCLE — REVERSE MORTGAGES FUND FINANCIAL GOALS

“Reverse mortgages emerging as retirement planning tool for high-net-worth homeowners,” a recent KDH news headline reads. Dionne Warwick might ask, “What’s it all about, Alfie?”, but the answer is far from puzzling. While in earlier years, KDH explains, reverse mortgages were associated with retirees facing financial hardship, today, affluent homeowners use them for strategic financial planning.

It is to be noted that, over the past six years, in this Shift Into Reverse blog, we’ve been mainly referring to federally insured reverse mortgage loans, there are also proprietary, so-called “jumbo” reverse mortgage loans available for use by high-net-worth homeowners. As “private” loans, these “jumbos” allow homeowners younger than 62 to leverage their home equity, and also allow access to a larger percentage of housing wealth.

At a recent family gathering, you got into a conversation about financial matters with your 58-year-old nephew, who proceeded to “pick your brain” about retirement planning strategies he and his wife have been contemplating. Knowing that, years ago, you and his aunt had taken out a reverse mortgage, your nephew wanted to learn more about your experience. While he may be too young to qualify, you’re enjoying the fact that as a highly successful entrepreneur who is far, far wealthier than you have ever been (and owns a home valued at multiples more than yours); appears to value the advice of his eighty-three-year-old uncle….

What you shared with him is that, for you, freeing up the equity in your home allowed you to finance the rather extensive repair/remodeling that enabled the two of you to “age in place”; you were able to accomplish that goal without interrupting or reducing the cash flow from your portfolio. Your nephew, in contrast, is not contemplating retirement any time soon, but is wanting to have access to financial resources for business purposes. He wants to increase his exposure to what he describes as a “historically exciting business investment climate”.

Not all reverse mortgage candidates “need” financial help; as is true of your nephew, financial secure borrowers are looking for liquidity and flexibility. Your nephew might qualify for a proprietary or “jumbo” reverse mortgages (which are private loans not insured by the Federal Housing Administration), which allow for homeowners over age 55 to access their home equity. What’s more, while the current limit on reverse mortgages is just over $1.2 million, jumbo loans for qualifying borrowers can be as high as $4 million.

Your nephew will need to speak with a reverse mortgage professional, but you can share with him that, just as has been true on your own reverse mortgage loan, jumbo reverse mortgages are non-recourse, meaning that borrowers will never owe more on the loan than the appraised value of the home. What’s more, unlike the case with your loan, where you needed to pay mortgage insurance premiums both at closing and as an ongoing annual cost, jumbo reverse mortgage borrowers do not pay insurance premiums.

“Take it from your eighty-three-year-old uncle”, you can say – “as a high net worth, not-yet-retired, homeowner, you nephew might wish to explore the many uses for jumbo reverse mortgage funding…”

David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org

Equal Housing Lender

#297: Home equity provides a dual solution

By: John Metcalf

July 29, 2026

HOME EQUITY HELPS DAD AND DAUGHTER HELP EACH OTHER

After your wife’s passing more than a decade ago, you made the decision (you were 71 at the time) to spend your remaining years in the familiar surroundings of your home. While all your children stay in close touch, your sons and their families live quite far away; your daughter, a healthcare worker, has always been nearby. The oldest of your three children, divorced these many years, your daughter has struggled financially. Yet, among the siblings, she’s proven the most devoted to your welfare.

Over the past couple of years, your health has been on somewhat of a downward path, and, while you’ve been able to remain independent, it has become more challenging to manage home maintenance and upkeep. Driving is still possible, but it’s become evident that you’re going to need some help, at least a couple of days each week, to relieve your daughter, who has been helping with the shopping and food preparation.

Through church, you attended a talk about reverse mortgages. You’ve been considering that idea for yourself, given that your home is mortgage-free and, judging from a recent sale in the neighborhood, has grown substantially in value over the years. Tapping into that value, you realize, might be the only way to afford home health care.

Meanwhile, though, your daughter has suggested moving in with you, which would save her having to pay apartment rent. Your home is certainly large enough, she points out, to afford the privacy she’d need. With her help, she adds, you would not be burdened with paying for expensive home healthcare.

While, on the face of things, the idea of having your daughter right there is very appealing, you want to be sure you’re not putting your own needs ahead of her future security. She would need to be guaranteed the right to remain in your home in the event your health deteriorates to the point of having to move to a hospital of nursing home. Does a reverse mortgage still fit this situation, you’re wondering?

If your daughter is 62 or older, she can become a co-borrower on a HECM reverse mortgage, which would guarantee her the right to remain living in the home if you were not longer able to stay there (either because you’ve had to go to a medical facility or you’ve passed). However, because the reverse mortgage loan calculation will be based on the age of the youngest borrower, the available loan amount is going to be significantly reduced. If, on the other hand, you decide not to have her as a co-borrower on the reverse mortgage loan, when the time comes that you have not been able to occupy the home for more than a year, your daughter would need to pay off the balance in order to remain in the home.

According to Psychology Today, nearly one in eight adults in the U.S. is caring for an aging parent, and “family caregiving is increasingly recognized as a normal phase of the parent/child life cycle.” Finding and paying for home health care, the authors note, is a real challenge. With your daughter a healthcare professional (and willing to live in your home), it certainly sounds like an arrangement worthy of serious consideration (with both an estate planning attorney and a reverse mortgage professional).

With reverse mortgage funding, your home equity can help you and your daughter help each other.

https://mutualreverse.com/david-garrison

Equal Housing Lender

The Modern HECM: How Legislative Changes Made Reverse Mortgages Safer Than Ever

By: John Metcalf

July 29, 2026

If your perception of a reverse mortgage was formed years ago, it’s time for a second look.

Many of the concerns people still have about Home Equity Conversion Mortgages (HECMs) are based on how the program operated decades ago—not how it works today. Over the last 40 years, Congress and HUD have made significant changes to strengthen consumer protections and improve loan performance.

Here are some of the most important milestones.

1987: Homeowners Keep Ownership

One of the earliest misconceptions about reverse mortgages was that the bank took ownership of the home.

The Housing and Community Development Act of 1987 established the FHA-insured Home Equity Conversion Mortgage (HECM) program, making it clear that borrowers retain title to their homes. As with any mortgage, homeowners continue to own their property as long as they meet the loan obligations, including living in the home as their primary residence, paying property taxes, maintaining homeowners’ insurance, and keeping the home in reasonable repair.

2013: A Major Modernization

The Reverse Mortgage Stabilization Act of 2013 gave HUD the authority to implement sweeping reforms designed to improve the long-term stability of the HECM program and better protect borrowers.

These changes addressed several concerns.

Better Distribution of Loan Proceeds

In the past, borrowers could withdraw virtually all available funds at closing. Today, first-year withdrawals are generally limited, helping preserve home equity and reducing the risk of exhausting available proceeds too quickly.

Protection for Non-Borrowing Spouses

One of the most significant improvements was the addition of protections for eligible non-borrowing spouses. These changes allow qualifying spouses to remain in the home after the borrowing spouse passes away, provided program requirements are met.

Financial Assessment

Prior to 2013, borrowers were not evaluated for their ability to meet ongoing obligations such as property taxes and homeowners’ insurance.

Today, lenders conduct a financial assessment to help ensure borrowers can comfortably meet these responsibilities, reducing the likelihood of future defaults.

Life Expectancy Set-Asides

When necessary, a portion of the loan proceeds may be reserved to pay future property taxes and homeowners’ insurance. This safeguard protects both the homeowner and the FHA insurance fund by ensuring these critical obligations continue to be met.

The Results Speak for Themselves

These reforms have dramatically improved the performance of the HECM program.

According to Performance of HECM Reverse Mortgages by Christopher Mayer, Ph.D., Columbia Business School, default rates fell by approximately 74%, declining from 2.3% to just 0.6% after these consumer protections were implemented.

The Bottom Line

Today’s HECM is not the reverse mortgage many people remember hearing about years ago. Through thoughtful legislative and regulatory changes, the program has become a sophisticated retirement planning tool designed with stronger consumer protections, improved underwriting, and better long-term outcomes.

For many homeowners age 62 and older, a HECM is no longer simply a way to access home equity—it’s a strategic financial planning tool that can help improve cash flow, preserve investment portfolios, manage healthcare expenses, and enhance retirement flexibility.

Before dismissing a reverse mortgage based on outdated information, it’s worth taking another look. The program has changed—and those changes have made all the difference.

Source: Christopher Mayer, Ph.D., Columbia Business School, “Performance of HECM Reverse Mortgages.”

#296: Continued use of a reverse mortgage as a financial tool

By: John Metcalf

July 15, 2026

IT MIGHT PAY TO REPAY YOUR REVERSE MORTGAGE LOAN

Some five years ago, having arrived at a decision to spend your retirement years in the home you’d owned for decades, you two made a couple of related, very important choices: First, you applied for a reverse mortgage, using the equity built up in the home itself to finance an upgrade of the heating/cooling system and a bathroom remodel, but also to finance the purchase of a health and wellness center franchise. After successfully operating that business, you’ve just recently accepted an attractive offer to buy out your franchise interest.

When first weighing the pros and cons of the reverse mortgage, you were encouraged by the fact that there was going to be no need to make monthly mortgage payments,* and that there would be no tax on any withdrawals of equity. Now that you are about to come into a sizeable sum of money, you’re wondering whether it will be a good idea to put that cash “back into the house” by voluntarily repaying a large portion of the reverse mortgage loan.

When you make a voluntary payment into your reverse mortgage account, you increase your available line of credit for any future need that may arise, while reducing the compounding of the interest rate being charged on the loan. Remember, any unused portion of your equity continues to grow at the same rate as that being charge on borrowed funds.

Rates on reverse mortgages are higher than they were five years ago, so paying down the loan balance limits the amount of equity being consumed by higher interest charges. Repayments mean increasing your borrowing power for future needs.

https://mutualreverse.com/david-garrison

*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.

Equal Housing Lender

#295: Using a reverse mortgage as a financial planning tool

By: John Metcalf

July 15, 2026

THE REVERSE MORTGAGE – THE FINANCIAL PLANNING SWISS ARMY KNIFE

Some five years ago, in an early Shift Into Reverse blog, we addressed head-on the compliance concerns of financial advisors, underlying their reluctance to discuss with clients products they themselves were not licensed to sell (such as property/casualty insurance, long term care policies – or reverse mortgages. Your function, we suggested to advisors, lies in pointing out the possibility that such products might satisfy a specific need, then recommending that the client seek the advice of a specialist

Today, for both advisors and clients, reverse mortgages have been moving ever-higher on the list of “need-to-know-about” topics. “Over the past 15-20 years, the industry has seen a significant increase in consumer protections,” HECM World explains.”The best originators approach conversations as advisors, positioning themselves around solutions rather than products.” According to the National Reverse Mortgage Lenders Association, reverse mortgages jumped 6.23% in 2025. Why the increase? G. Brian Davis suggests a number of reasons:

Seniors outnumber children in nearly half of U.S. counties.
Home prices skyrocketed over the past five years, supercharging many seniors’ home equity.
Inflation has left many retirees “house rich and cash poor”.
A slowing labor market has impacted post- retirement income supplementation
¾ of senior Americans said they want to age in place, which translates into the need for home modifications to caregivers.

Just some of the many solutions we’ve chronicled in this blog include:

Mitigating sequence of returns risk for retirees (in case markets drop in the early years of retirement)
Establishing a Growing Line of Credit: The unused portion of a HECM (Home Equity Conversion Mortgage) line of credit grows over time, regardless of home value fluctuations, giving the homeowner access to an expanding emergency fund.
Delaying Social Security: Client can draw on reverse mortgage proceeds to cover living expenses in early retirement years, allowing your Social Security benefits to grow to their maximum potential.
Funding Healthcare & Long-Term Care: Proceeds can be utilized to pay for in-home care, long-term care insurance premiums, or sudden medical expenses.
Financing the tax on a Roth conversion.
Funding for aging-in-place remodeling of property.
Replacing expensive riders on Long Term Care Insurance.
Funding grandchildren’s education costs or business startups.

As Wade Pfau, PhD, CFA, Professor of Retirement income at the American College of Financial Services notes: “The reverse mortgage option should be viewed as a method for responsible retirees to create liquidity for an otherwise illiquid asset, which in turn can create new options that potentially support a more efficient retirement income strategy (more spending and/or a greater legacy.”

Fact is, the reverse mortgage has developed into a “Swiss army knife” tool that can be used to fill an expanding variety of problem solutions for clients. Ironically, far from diverting client assets, in many cases, the solutions offered through reverse mortgages result in increasing Assets Under Management for the advisors.

https://mutualreverse.com/david-garrison

Equal Housing Lender