If you’ve been reading my column here on CrystalBeach.com for a while, you’ve probably seen me write about reverse mortgages before. And if you’re still a skeptic, I get it. The reputation of this product has been dragged through the mud for years, and most of what people think they know about it just isn’t accurate anymore, if it ever was.
Let me be straight with you. I offer every type of mortgage there is. Conventional, FHA, VA, USDA, construction loans, investment property, vacation homes. I shop over 280 wholesale lending partners to find the most competitive rates and the best program for every single client I work with. I love what I do across the board.
But reverse mortgages? That’s a different kind of passion. Because I have watched this product, when used correctly, genuinely change people’s lives. Not in a sales pitch kind of way. In a “my 72-year-old client just bought her dream retirement home with no monthly mortgage payment and her investment accounts are still growing” kind of way.
That’s why on Tuesday, June 16th from noon to 1:30 PM, I’m hosting the Senior Freedom Seminar: Unlocking Home Equity in Retirement at FOE Eagles on Hwy 87 right here in Crystal Beach. And I’m bringing in the big guns.
Loren Riddick, CRMP, is NEXA Lending’s National Director of Reverse Mortgage, and one of fewer than 200 people in the entire country to hold the CRMP designation, Certified Reverse Mortgage Professional, which is the highest credential this industry offers. He has been specializing exclusively in reverse mortgages for more than 20 years. He doesn’t do forward mortgages. He doesn’t dabble. He and his team do only reverse mortgages every single day. Loren is flying into Bolivar Peninsula specifically for this event.
There’s More to This Product Than You’ve Been Told
Most people think of a reverse mortgage as a last resort, something you do when you’ve run out of options and need cash. That picture is about 20 years out of date.
A Home Equity Conversion Mortgage, or HECM, can be structured as a line of credit that you simply let sit there, untouched, and it grows. Right now, that growth rate is over 6% year over year, and the funds it generates are tax-free. Use it when you need a new roof. Use it when property taxes come due. Use it to take your grandkids to the beach for a week. Or don’t use it at all, and watch it grow into a meaningful financial cushion for you and your heirs.
Most people have never heard that a reverse mortgage line of credit grows. Most financial advisors haven’t heard of it either. Come to this event and see what your specific numbers could look like over the next five years.”
The HECM for Purchase: Buy Your Next Home With No Mortgage Payment
If you’re thinking about downsizing, or moving closer to family, or finally getting that single-story home, there’s a program that lets you sell your current home, use a portion of the proceeds to purchase your next one, and carry zero monthly mortgage payment on that new property for as long as you live there.
You take care of routine maintenance, keep up with property taxes and homeowner’s insurance, and that’s it. No mortgage payment. Ever. Meanwhile, the savings you would have spent on a cash purchase, or the investment accounts you would have drained, stay exactly where they are, growing. Real estate agents, pay attention here. This program means your senior clients can sell their current home and purchase a new one. That’s two transactions, one client, and a solution most agents on the Bolivar Peninsula and Galveston Island have never been able to offer. We’ll talk about this at the seminar.
Let’s Talk About the Myths
“The bank will take my home.” No. With a HECM, you remain on title and you own the home. The lender holds a lien, the same as any mortgage. As long as you live there as your primary residence and keep up taxes and insurance, nobody takes anything.
“My heirs will lose the home and owe money.” No. When the loan comes due, which happens when you permanently leave or pass away, your heirs have options. They can sell the home, pay off the loan, and keep any remaining equity. If the home is worth less than the loan balance at that time, FHA insurance covers the difference. Your heirs are not personally liable for a single dollar beyond the home’s value.
“The money will run out and I’ll be underwater.” No. A HECM is a non-recourse loan. You can never owe more than the home is worth at the time of sale. Period.
Loren and I will take every question you have on June 16th. No question is too basic and no myth is off limits. Between the two of us, 20-plus years of reverse mortgage specialization and over 280 wholesale lending relationships, there isn’t a scenario we haven’t seen.”
