Reverse Mortgages: How to tap into this often overlooked, under-utilized planning tool for advisors today
EXCLUSIVE WEBINAR
Unlocking Home Equity: Reverse Mortgage Strategies for Financial Advisors
REVERSE MORTGAGES
An Untapped Opportunity for Advisors
Trillion
in total U.S. home equity held by adults 62 and older.
%
of retirees’ net worth
is tied up in their homes — not in liquid assets that can fund their goals.
in average home equity
is held by retirees in high-cost states, offering substantial flexibility for strategic planning.
%
Studies show that clients who include home equity in their retirement plans can extend portfolio longevity by up to 30%.
Sources: National Reverse Mortgage Lenders Association, National Council on Aging, Journal of Financial Planning
Reverse mortgages are the most interesting and under-appreciated financial tool I've ever seen. By making your home equity liquid, you turn a clunky asset into a usable financial tool.
Brady Mullen
WATCH THE WEBINAR
Unlocking the Potential of Reverse Mortgages
Maximize Tax Benefits
Explore concrete client scenarios and numbers to access tax-free income with optional monthly payments.
Unlock Client Liquidity
Learn about eligibility, and product options to equip your clients tap into home equity for financial liquidity and flexibility.
Retirement Planning
Learn best practices to strategically integrate reverse mortgages into retirement plans for long-term security.
PART ONE
How to model a reverse mortgage with PlanScout
Follow along step-by-step as we help a client generate over $2 million in added value with a reverse mortgage.
PART TWO
What Every Advisor Should Know About Reverse Mortgages
What Are Reverse Mortgages?
Brady Mullen explains the essentials of reverse mortgages and how they can turn your home equity into liquid assets. He also highlights how this approach parallels liquidity strategies used by ultra–high–net–worth clients.
How Do They Work?
You’ll learn how and why payments can be optional, when the balance is due, and the value of non-recourse loans, like Reverse Mortgages.
Visual Examples of How They Work
Sometimes seeing things in a visual way makes all the difference. You’ll see visual examples of how a HECM credit limit grows, selling a home with a reverse mortgage, selling your home when you owe mor than it is worth, and leveraging your available credit regardless of home value appreciation.
Sample Client Scenarios
We’ll explore examples of how Reverse Mortgage HECMs can:
• Help clients who need more liquidity to support their lifestyle
• Be a tax-free line of a credit to hedge against market volatility
• Help clients purchase a retirement home that they didn’t think was possible
• Help clients afford rapidly rising taxes and insurance in highly appreciated hoes
Provide significant value with tax planning
Constraints
Constraints of reverse mortgages include age requirements (typically 62 or older), the need for sufficient home equity, and the fact that they can only be used on primary residences. Additionally, there are costs involved, such as mortgage insurance and closing fees, which are typically rolled into the loan balance.
Ideal Candidates
Ideal candidates for reverse mortgages are seniors who have significant home equity, wish to remain in their homes, and need additional income to cover living expenses or healthcare costs. They are particularly beneficial for those who want to make their home equity liquid without selling their home or taking on monthly mortgage payments.
With over $13 trillion in home equity amongst U.S. homeowners aged 62+, reverse mortgages aren’t merely a last resort, they are a massive untapped opportunity.
-Brady Mullen