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#211: Using a reverse mortgage to prepare for future cost escalation

HOME EQUITY CAN BE THE KEY TO PROACTIVE PLANNING

Retirement planning means a complete review of retirement needs, including health care and end-of life planning, an article in the October issue of Financial Planning magazine reminds readers in a piece about Long-Term Care insurance. While clients with sufficient assets might prefer to self-fund, consideration of possible costs must always be considered a part of retirement planning. 

A second article in the same issue cautions advisers to include in their discussions with clients another “growing area of expense”, property taxes, which are “gobbling up a larger share of homeowner budgets”. According to data from the National Association of Homebuilders, the 12-month total for state and local property tax revenue jumped 9% year over year in the first quarter of 2024.

While clients may see no need for additional income either presently or in the foreseeable future, strategic planning must include housing wealth. With a reverse mortgage set up as a future line of credit, (with the un-borrowed portion of the equity guaranteed to grow, tax-free ,at the same growth rate as the interest being charged on the mortgage balance), for even higher net worth clients, their housing wealth can  be the key to proactive planning for future escalation in housing and healthcare costs.

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).

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 your tax advisor. 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