This is Exciting!
Last week a new equity release program was rolled out for those age 55! For the last three decades, the most common age was 62. This changes everything!
Now our 55+ clients can implement some of the housing wealth strategies I’ve have been discussing for 22 years.
The new program is designed for homes over $500,000 and state specific requirements will vary (see below)
I believe its highest and best use will be
- (1) in paying off an existing mortgage and
- (2) purchasing a new forever home.
A line of credit feature is available in certain states.
CASE STUDIES
Dick and Jane Buy a New Home
Dick and Jane would like to move into their forever home in a new 55+ development. They will have $360,000 in proceeds after they sell their existing home, and the home they want is now $520,000. They don’t want another mortgage payment and they don’t want to take cash out of their savings to cover the $160,000 shortfall.
Their advisor tells them about the new 55+ reverse mortgage that would allow them to bring a downpayment of around $312,000 and move into the new home without having a mandatory monthly mortgage payment.
Luke and Laura Take the Pressure Off
Luke and Laura are 55 and were planning to retire in 10 years. They have $750,000 in total retirement savings. They live in a $500,000 home with a $200,000 mortgage.
Since the beginning of Covid, their employment status is far from certain. They believe it will be fine, but they would like to have the freedom of not having a loan payment.
Their advisor asked them if they had a choice between a mandatory monthly payment or voluntary one, which would they choose? They said “voluntary, of course” and asked, how could that work?
The advisor requested a housing wealth illustration and showed them how the new proprietary reverse mortgages (55+) could eliminate their existing mortgage payment and give them choice of making a payment or not. – Game Changer!
What Can Advisor’s Do?
- Learn a few housing wealth strategies (Download White Paper)
- Identify client homeowners 55+, especially those who are still have a mortgage payment
- Request an illustration
- Register for a Business Builder Coaching Call
Allow our team to help you develop some retirement income strategies that will WOW your clients.
These housing wealth opportunities just keep getting better. Don’t miss out – dg
STATE SPECIFICS (11/3/2021)
Don Graves, RICP®, CLTC®, Certified Senior Advisor, CSA®
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Categories: Advisors, Ask Don Graves, Financial, Industry Updates
Tags: Buying a Home with a Reverse Mortgage, Changes to Reverse Mortgages
