Items Tagged with 'financial planning'


  • Most homeowners think a reverse mortgage is a last-resort option. Here's why they're wrong

    Savvy homeowners can use the loan to maximize their resources in retirement
    Reverse mortgages are traditionally thought of as a last-resort option for seniors who want to stay in their homes but have little resources and few options left. But research has proven otherwise. For those over 62 who want to age in place, a reverse mortgage can be a beneficial financial planning tool for more well-off borrowers in a number of ways.
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  • Bloomberg: Reverse mortgages are staging a comeback

    Industry embraces academics, leaves behind celebrities to spread new message
    Reverse mortgages might be "America's most hated home loan," according to a recent article in Bloomberg, but the news outlet also says they are staging a comeback thanks to the support of leading academics. In the past, these loans were touted as an option for cash-strapped seniors by aging celebrity pitchmen. But now, lenders are turning to retirement researchers and high-profile financial planning experts to promote the product's use as a smart financial planning tool.
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  • Here's a compelling reason to take a reverse mortgage ahead of retirement

    The loan can help eliminate a massive burden for senior homeowners
    A reverse mortgage isn't a good fit for everyone, but for older homeowners with sizable equity and no intention of moving, the loan can make sense. And here's one compelling reason why: When a homeowner over the age of 62 refinances their traditional mortgage into a reverse mortgage, they can make their mortgage payments optional. For those who are on the brink of retirement and staring down the barrel of a limited, fixed income, this could make all the difference.
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  • How much equity can you extract with a reverse mortgage? This calculator will tell you

    Retirement researcher Wade Pfau's online tool breaks it down
    A well-known figure in the retirement income world, Wade Pfau has been vocal about the benefits of using a reverse mortgage to fend against financial shocks in retirement. Pfau has published a series of articles about reverse mortgages, seeking to demystify the product and explain strategies for its use. In his latest, he offers an online calculator to help homeowners estimate the amount of proceeds they could obtain through the loan.
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  • Here's how some HECM originators connect with financial advisors

    Reverse mortgage professionals share tips for building this referral base
    For the last several years, the reverse mortgage industry has been on a mission to teach financial advisors how a HECM could be useful in retirement income planning. HousingWire reached out to six seasoned HECM vets to learn how they engage financial advisors and turn them into solid referral partners. Here's what they had to say.
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  • Reverse mortgages finally make headway with financial advisors

    One broker-dealer now permits discussions about the loan. Will others follow suit?
    Reverse mortgages are often touted as a financial planning tool that can be used strategically to boost one’s income in retirement. But getting through to the financial advisors who work with planning-oriented consumers has been difficult thanks to a widespread institutional blackout on discussions related to the use of housing wealth. Is the tide finally beginning to turn?
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  • Reverse Mortgage Funding: More financial advisors are recommending HECMs

    Lender ramps up education to help partners connect with advisors
    The reverse mortgage industry has been working for years to connect with financial advisors to teach them about the valuable role home equity can play in retirement income planning. Now, leading HECM lender Reverse Mortgage Funding says the effort is finally paying off. RMF says it has seen a significant uptick in interest from advisors and its investing sizable resources into helping its originators build this channel of business.
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  • Finance of America Reverse releases HECM Illustrator

    Sales tool graphically demonstrates reverse mortgage benefits
    It’s one thing to tell someone how payments made on a reverse mortgage loan can grow their line of credit – but it’s another thing to show them. That’s the approach Finance of America Reverse is taking with its new sales tool, the Illustrator. "It's simple, it's easy to use, and it sends a very powerful message," said creator Steve Resch.
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  • Should you use home equity to delay Social Security?

    The CFPB warned against it, but experts say it works
    For some time, reverse mortgage lenders touted a strategy that involves obtaining a HECM early on in retirement in order to delay taking Social Security, therefore maximizing its benefit. But then the CFPB issued a warning against it. Now, retirement researchers and financial advisors say the strategy still has real merit, but suitability depends on a case-by-case basis.
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  • Here's why some financial advisors aren’t allowed to discuss reverse mortgages

    They can bolster a retirement plan, but some advisors can't talk about them
    Reverse mortgages have undergone substantial changes that have repositioned them as a worthy financial planning tool. But many financial advisors are unable to discuss them. The problem is an institutional blackout placed on advisors from their broker-dealer firms. And apparently, this problem is widespread.
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