California Reverse Mortgage News

Financial Advisors Top 5 Reasons Why They're Favoring The Reverse Mortgage

October 19th, 2015 10:11 AM by Kevin Walton

     Here are the top 5 reasons Financial Advisors are starting to favor the HECM
     Reverse Mortgage
and here's a hint, it's not because of the reasons you hear
     about on t.v.

1. The HECM Line of Credit growth factor.  The unused line of credit grows over time 
    on the growth rate attached to it, so as interest rates rise, the amount of available credit
    rises as well. So it serves as a hedge against a rising interest rate market.  A Financial
    Advisor can build other strategies for their client on top of that.

2.  Even in a declining home value cycle, the amount of usable available credit on the   
     HECM Line of Credit increases.  The growth rate is not tied to home values.  In theory, 
     your amount of available credit to use can be greater than the home value itself and if
     the home needs to be sold and property is up side down, there is FHA mortgage
     insurance that will cover the gap.  Plus the lender can't close the line of credit if home
     values fall, whereas on a bank HELOC they can close the line.

3.  Having a HECM Reverse Mortgage standby Line of Credit, gives the senior citizen an
     option to delay taking Social Security benefits.  The senior can let the SSI ripen on the
     tree and take monthly tax free advances on the HECM Line of Credit and delay taking
     SSI benefits until a later time when their monthly benefit will be greater.

4.  The HECM Reverse Mortgage Line of Credit will also give the senior an option for
     monthly income advances to avoid dipping into other liquid assets in a down market
     and provide a cash reserve to weather market turmoil.

5.  You can buy a home with the HECM Reverse Mortgage purchase option.  A large down
     payment is needed on the new owner occupied home, and than no payments
     are due on the balance of the loan. This means that the senior citizen can keep more
     money in their pocket from the sale of their existing home, since they don't have to pay
     all cash, and after making the large down payment, not have any monthly mortgage.

     The HECM Reverse Mortgage is no longer a loan of last resort, it's for savvy seniors 
     who want more options on how to handle their money and the options above aren't 
     mentioned in the television commercials that we see.
     Plus with the newly passed legislation, the product is much safer and friendly to 
     seniors than in the past.
     Feel free to visit our website for articles and videos on for more information.    
   
     Best,
     Kevin Walton
     Best Capital Funding
     www.californiareversemortgage.biz