When financial planners counsel retirees on how to best leverage their retirement portfolio, social security, and other assets, considering a HECM reverse mortgage was rarely part of that conversation – but this is beginning to change.
As the myths of the industry are laid to rest, many professionals are beginning to better understand how reverse mortgages can be used as a retirement financial planning tool for both those who are on a strict budget as well as those who want to live out the dreams of the golden years. Reverse mortgages can often mean the difference between just living and living life to the fullest.
A few tips for financial planners:
Seek out and work with a reputable HECM reverse mortgage advisor who has strong ties to the community, lends from an organization that is a member of the Better Business Bureau, and is associated with theNational Reverse Mortgage Lenders Association.
Make sure you fully understand the information you may be offering your retiree client. With the amount of misinformation within the industry, if you are not 100% sure of an answer, call your trusted reverse mortgage specialist to ensure the information you are providing is accurate.
Communicate with adult children who may have concerns and make sure they fully understand the process from A to Z. Eliminating misinformation is key.
Remember, reverse mortgages are not one-size-fits-all. Be creative and comprehensive when considering adding a reverse mortgage to a long term retirement plan.