Top 10 Reasons Financial Advisors Recommend Reverse Mortgage Lines of Credit!


What are the top 10 reasons a Financial or Wealth advisor would recommend a reverse mortgage equity line of credit to their senior clients?

Here is my top 10 list.

  • Replace cash reserves-used for emergencies or other unexpected expenses.
  • Delay drawing Social Security payments and pension payouts – Supplement your clients monthly income until their 66th or 70th
  • The Equity Line Loan Proceeds are not considered income and can be used as a tax-free income supplement.
  • The Equity Line of credit can buffer spending of investments in a down market.
  • Use the line of credit to cover unexpected gaps in medical coverage.
  • Use proceeds to pay for Long-term care insurance and in-home nursing care.
  • Eliminate monthly mortgage payments to increase monthly cash flow. (Clients continues to pay property taxes & Insurance)
  • Provide a new way to diversify wealth.
  • Use the Credit Line to purchase a new home and save the residual cash for other investments 3
  • Enhance financial security without affecting some benefits such as Social Security or Medicare Benefits.

Extra Credit:

  • Under the current and proposed tax plans under President Trump, the proceeds are tied to a real estate loan and in most cases are tax deduction.

While each Advisor knows the specific needs of his client, in most cases a reverse mortgage line of credit is a valuable instrument in the Advisor’s belt of financial tools.

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Albert Jones / (626) 798-8300 x700 / NMLS#1001865

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