Fully three and a half years ago, in an early Shift Into Reverse blog post, we addressed the compliance principles that apply when financial advisors discuss with clients products they themselves are not licensed to sell, such as property/casualty or long term care insurance and reverse mortgages. “Your function” we advised, lies in pointing out the need, recommending to the client to 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. In recent months, home equity among people 62 and older has reached an all-time high (greater than $13 trillion as of late last year), coinciding with a record wave of people moving into their 60s, Investment News points out.
In addition to that combination of circumstances, even for those financially well-off, a market downturn could make the idea of a reserve mortgage attractive as a way to reduce sequence-of-returns risk, Dr. Wade Pfau, retirement researcher and professor at The American College of financial Services notes, calling reverse mortgages a “buffer asset”.
With a 42% increase in home values since the summer of 2020 in our state of Indiana (according to the Business Research Center at Indiana University, housing wealth has become an even more significant element of net worth.
While financial advisors need to refer clients to a reverse mortgage specialist to execute the transaction, fort a growing number of retiring individuals, the reverse mortgage can help people maximize their invested assets, and, as Wade Pafau notes, even result in clients “ending up leaving heirs with more than they otherwise might.”
https://mutualreverse.com/david-garrison
Readers, if you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here(and scroll down).
If your heirs want to keep the home after your death, they will have to repay either the full loan balance or 95% of the home’s appraised value, whichever is less. 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. 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
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