A reverse mortgage could help your clients age 62 and older to effectively leverage an important retirement asset: home equity. Thanks to recent academic research that demonstrates the value of FHA-insured* Home Equity Conversion Mortgages (HECMs), reverse mortgages are gaining acceptance as a valuable and effective tool to help satisfy the challenges of meeting retirement goals for decades.
With its flexible payment options, a reverse mortgage can give borrowers more financial control and can serve as an excellent risk management tool, while keeping productive assets under your management — helping their portfolios last longer. As a tax-efficient strategy, clients can use a reverse mortgage to reduce their income taxes1 by lowering their withdrawals from qualified accounts. Other uses include refinancing aconventional mortgage with a HECM, so as to eliminate a client's monthly principal and interest payment. As with any home-secured loan, the borrower must meet their loan obligations, keeping current with property taxes, insurance, maintenance, and any homeowners association fees. Or perhaps using a HECM to finance the purchase of a home, thereby reducing the amount of cash older clients have to "put down" when downsizing.
Clients can establish a HECM credit line and draw on it as needed for future expenses, such as health care costs. A unique feature of the HECM credit line is the amount available to clients will grow2monthly, independent of any change in home value. This feature provides additional available cash in future years that may prove valuable as clients savings are depleted.
To see the pros and cons of a Reverse Mortgage Line of Credit vs. a traditional Home Equity Line of Credit (HELOC), click here.
To learn more, please contact me.
Larry McAnarney
HECM Loan Specialist, NMLS #21059
Call 815-703-4745 | lmcanarney@reversefunding.com
Branch NMLS # 1404799
700 Commerce Drive, Suite 5055
Oak Brook, IL 60523
| 1 | Not tax advice. Consult a tax professional. |
| 2 | If part of your loan is held in a line of credit upon which you may draw, then the unused portion of the line of credit will grow in size each month. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan. |
Professional-Patient-Flexible-Thoroughly Knowledgeable Our financial planner suggested we look into a reverse mortgage to free up extra assets to help us use them for vacations, anticipated and unanticipated expenes,while protecting current cash flow. Additionally, having a line of credit provides peace of mind that we will have the cash available to meet whatever the future holds. Larry provided the answers to our questions and pointed out the way the process works in a way we could understand and the pros and cons of the choices available relative to the costs associated with each choice, no hidden fees, and a clear understanding of our obligations. Larry helped us to consider family issues that might arise so we could determine what our goals are upon our passing for our children. He is professional, patient, flexible, and most of all thoroughly knowledgeable.
Bob V — Mar 31, 2017
Clone Larry! When we met Larry McAnarney, it did not take long to feel comfortable. There was no high pressure feeling; he answered our questions and put us at ease. Larry was great! Our Hud counselor, and the gentleman who did our closing were very good, too. Only one problem.....we should have done it sooner. Larry gets SIX stars. Bernice and Dave
Bernice & Dave L — Oct 28, 2014
Larry Takes the Time Necessary Larry takes the time necessary to make sure everyone in both the purchasing and selling groups understand the complete Reverse Mortgage for Purchase program. Larry does not hurry through the answers to questions, but does not waste time either. He will be the one suggested on any future transactions that need his help and assistance.
Ray K — Feb 17, 2020
This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency. RMF is a Licensed Mortgage Banker in the State of New York, but this loan originator and site are not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.
© 2020 Reverse Mortgage Funding LLC, 1455 Broad St., 2nd Floor, Bloomfield, NJ 07003, 1-888-494-0882. Legal approval #L976-Exp042018, Company NMLS ID # 1019941. For licensing information go to www.nmlsconsumeraccess.org/?EntityDetails.aspx/?COMPANY/1019941. For California consumers: For information about our privacy practices, please visit www.reversefunding.com/privacy . Not all products are available in all states. Terms subject to change without notice. Certain conditions and fees apply. This is not a loan commitment. All loans subject to approval. For more information about Larry McAnarney go to https://local.reversefacts.com/larry-mcanarney-d5f3b06e35a1
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