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NMLS#202003 - Equal Housing Lender

Hi! My name is Deborah Nance, I've been helping older Americans with reverse mortgage solutions since 2005. Here are some of the most common problems that reverse mortgages can help to solve.

The most common problem that a reverse mortgage can solve is the problem of a house payment that is causing havoc with a homeowners budget. The house payment that was easy to handle when you were working is now uncomfortable and is causing you to dip into savings more often than not. Though most homeowners planned to have their homes paid off by the time they were 62, the reality is that many many do not. During the crazy real estate boom of the early 2000's many seniors tapped into their own home equity to help their children to buy a home before prices soared out of reach. The boom lasted so long that they truly believed that if they didn't help their kids, the kids would never own a home. Well, we know how that turned out. The kids lost their jobs, the housing market crashed and the kids have yet to begin to pay mom and dad back. I ask my clients at our initial meeting, "How much is your monthly mortgage payment?" $1300 is an average response. Then I ask, "How much longer do you have to pay on it?" 20 to 25 years is what I usually hear. So a reverse mortgage to payoff the existing mortgage is the most popular solution I provide to my clients.

Setting up a growing line of credit for future emergencies is another popular solution a reverse mortgage can provide. Lots of my clients are on a fixed income and don't have as much savings as they had hoped for. They are one emergency away from bankruptcy. Even with a paid for home, they don't want to get a traditional mortgage because the income threshold for qualifying is too much for their situation. A reverse mortgage does not require any monthly mortgage payments at all. So they are much easier to qualify for. In fact, at this particular time there is no income or credit score qualifications for a reverse mortgage. So, most of my clients choose to set up a line of credit so that if there is an emergency or if they have a month they run short, they can draw funds from the LOC to cover their shortfall. The line of credit has a cool feature in that it grows over time. If for example they have a $100K line of credit, and they don't make any withdrawals.... the next year the line of credit would have grown to over $103K!, This growth is guaranteed no matter what happens to home values in the future. I can tell you that the older we get the more simple mishaps become major emergencies with increase costs.

A small fall will cause more than just bruises. As we age, frailty and failing health may prevent us from taking good care of ourselves and our homes. So having emergency funds available is important for peace of mind.

I have had clients who used a reverse mortgage to pay for inhome care. They were bound and determined that they were going to stay in their home until they die. They'd rather be cared for at home with their cherished memories.

I have clients who used a reverse mortgage to buy a second home or investment property. One retired real estate agent who owned her home free and clear took out a reverse mortgage and paid cash for a 4 bedroom condo near a military base. Her reasoning was that she would have no problems renting the home to soldiers with children. When she dies she knows the kids will sell her home to payoff the reverse and keep the change AND they will inherit a free and clear income property!.

A lot of homeowners use the reverse mortgage to solve a couple of problems. They payoff an existing mortgage putting them in a better cash flow position... and use the balance of the reverse mortgage proceeds to set up a growing line of credit for future emergencies.

I hope you enjoyed this video and if you'd like to know how much you could qualify for with a reverse mortgage - please click on the link below to complete a request for a reverse mortgage analysis. It's an easy form and I'll get your numbers to you in no time. I'd love for you to take just one more second and "Like" our video and leave any comments or questions.

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