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The Stewardship of Housing Wealth

Faith And Finance / Rob West
The Truth Network Radio
June 4, 2024 5:56 pm

The Stewardship of Housing Wealth

Faith And Finance / Rob West

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June 4, 2024 5:56 pm

Home equity is undoubtedly one of our largest assets, with an average of $300,000 of value boosting the bottom line of American homeowners.  So, how do the biblical principles of stewardship apply to it? On today's Faith & Finance Live, Harlan Accola will join Rob West to talk about the stewardship of housing wealth. Then, Rob will answer your calls about finances. 

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Homeowners now have an offer at 1-800-525-7000.

That's 800-525-7000. This is Faith and Finance Live, biblical wisdom for your financial decisions. Well there's no question that Harlan Achela is one of our more interesting guests on the program. Harlan's with Movement Mortgage, an underwriter of this program. He's a fellow brother in Christ and a reverse mortgage expert, and yes, those two things can go together. Harlan, welcome back. Glad to be here. Thanks, Rob.

Absolutely. All right, before we get into the topic today, Harlan, the stewardship of home equity, we should probably explain the joke I just made. Harlan, explain how today's reverse mortgages are not the same product that gave the name such a negative reputation in the past. Well, in 1988, during Reagan's term, there was a major change in the regulation of reverse mortgages, and something came out called the HECM, Home Equity Conversion Mortgage, HECM, that was regulated by the FHA. The reason it came out is because there was a lot of unsafe mortgages that took advantage of widows, took advantage of seniors, and the heirs as well, where they basically stole houses from families.

And so it deservedly had an awful reputation because it was unjust in many cases, and even in the best cases, it was not very fair to the families and the people that were involved. And so a lot of those issues have been addressed over the years. And while there's still some bad actors, as there is in any profession, it's something that has dramatically changed, but unfortunately, has not done much to lose its appearance of something that is dangerous or something that is certainly non biblical because it's debt, but properly used, excuse me, and properly put into a planning perspective. It's one of the most powerful tools that can be used for a great retirement as well as something that we can use to be proper stewards of some tremendous amount of wealth. Yeah, I think that's a key point there. It's a planning tool that can be used.

My own perspective on this tool has changed over time. We'll get into some of the nuts and bolts of that throughout the broadcast today. Plus, let me just mention, we will be taking your calls in this first portion of the broadcast specifically on reverse mortgages. So if you have a question for Harlan today, we'd love to hear from you.

Anything on your mind about how this would work in your life, things you don't understand, perhaps even questions you have, we'd love to hear from you. 800-525-7000. Again, that's 800-525-7000.

You can call right now. Harlan, to our topic then of stewardship, give us an idea of how home equity represents God's providence in your view. Well, the thing is that never in history has there been this much money in one asset class ever in any country in the world. There's over $12 trillion sitting in seniors' equity. If Christians are 70% of the population, that's obviously close to $8 trillion.

Breaking that down to an individual person, a person that bought a $300,000 house back in 2019, probably got about a $75,000 increase in their equity during that time period, not even counting what they paid down in their debt. When you think about getting a $75,000 check, we would be very prayerful about that. We would be concerned, what should we do with that? How should we employ that wealth?

But because it's kind of silently just accumulating in our homes, and it's something that's typically not given away until the end after we're gone, it isn't something that is planned for. But we have been given so much of a gift, so to speak, just because we were making our payments and living in our home, that we don't give it enough thought about, what should we do with that? Should we use some of it now? Should we use it to pay off some other debt? Should we use it for giving? Should we use it for early inheritances, living inheritances? How should that money be used? But yet often we look at our savings accounts and our IRAs completely different than we look at our home equity. But it's wealth, either way. It's just a matter of how we employ it. Yeah, I think that's well said. So kind of could this be a planning tool that makes sense in your life, either because you have limited resources trying to balance your budget, perhaps you have renovations or improvements or repairs you're unable to do.

Maybe a reverse mortgage is an option for you as you think about stewarding all the assets you have, including your home. We'll talk about that, even a biblical perspective on all of this and some of the nuts and bolts of reverse mortgages. Also your questions today, 800-525-7000. We'll be right back.

situation. Great to have you with us today. I'm Rob West, Harlan Akilow with us today. We're talking reverse mortgages and stewardship of your wealth in your home. That is the equity in your house, which is increased dramatically over the last several years in particular. And during this portion of the broadcast, taking your questions for Harlan on this topic of reverse mortgages, 800-525-7000. We've got some lines open.

We'll be headed to the phones here in just a moment. Let me mention first though that you hear me talk a lot about this idea of being debt-free as we enter retirement. We know that typically, at least historically, about half of retirees were entering this season of life without a reverse mortgage. And if that's your conviction to be debt-free, that's great.

Don't look back. But increasingly, we have more and more people heading into retirement with a mortgage. So, you know, only a third at this point typically will have their mortgage paid off, which means more and more retirees now continue to pay on that mortgage in this season of life.

And that's where I think we need to think about in light of cash flow, in light of stewardship of assets. How could a reverse mortgage as a planning tool be used effectively in this season of life? And Harlan, a lot of people probably don't realize that if they have that mortgage payment, they can eliminate it by paying off the existing mortgage with a reverse mortgage, right? It's probably the biggest misconception is people say, well, I'm not ready for a reverse mortgage yet because my house is not paid off. Well, the most common thing that we do is refinance a traditional 30-year mortgage, 15-year mortgage, whatever it is, a mortgage with payments that we refer to as a forward mortgage, we refinance it into a reverse mortgage, which now gives them optional payments for the rest of their life for the rest of the time they live in the home. I often ask people, what is the purpose of making a mortgage payment when you don't have to? Well, there's only one and that's to build equity. Well, if you don't need to build equity, it's kind of like donating to your 401k when you don't need to invest in the 401k anymore, because now you're pulling money out.

So it's just simply a different season of life. And it makes sense to use that money instead of continuing to try to accumulate more and more home equity. I've never had a time when I've had my budget has been in a better position than when I did my reverse mortgage two years ago. And I certainly have the ability to be more generous, I have the ability to be of more help to my children and grandchildren than I ever have been in the other phase of life, because my mortgage payment for the first time is zero.

And that's something that really changes things. Yeah, especially if someone in this season of life is ill prepared, they're finding there's a significant squeeze on their budget, they're struggling to make ends meet. This could be the thing by eliminating that mortgage payment even without taking a systematic payment out each month.

Just eliminating that mortgage payment could make the difference in them balancing their budget. Well, with Harlan here today, we want to take your questions. Be sure to address whatever's on your mind today specifically related to reverse mortgages. If you have a question, you can call right now 800-525-7000.

Let's begin today in Cincinnati. Hi, Bill. Thanks for calling. Go ahead. Hi. Great timing with your program.

It's perfect. I'm 68. I'm getting Social Security as of October 2023. But I have no investment income, except my house, the value of which I have no mortgage. The value is about is going to go is going up to about 380,000. And I want to get obviously every penny out. And I, I've been studying and reading on reverse mortgages for two years now. And it just seems like the best way to go. Hmm. Yeah.

Harlan, any thoughts or questions for Bill? Well, yeah, I think you need you said you didn't have any other investments, but you have a very substantial investment, that's almost a half a million dollars, 380. And so it's just a matter of properly and wisely using it, that it's something that's going to last for as long as you can possibly make it last. And it can be set up in two ways. You can set up when you have your house paid off, we set up a line of credit, or we set up a monthly check. If you're concerned about spending too much money, we can set up a monthly check where you get a guaranteed amount for the rest of your life as long as you live in the house.

Some people like to do that. So it's just better for budgeting, they know they're going to get an exact check just like they get with their Social Security check. But sometimes it makes sense to set up a line of credit, which is usually only 30 to 60% of the value depending upon your age. But it's a amount that rises every single month that you don't use it. And so you just pull money out as you need it. If you need $10,000 to fix a roof, as compared to just needing a few hundred dollars to take care of a big utility bill, you always have the option to pull out what you need when you need it without having to worry about returning that payment like you would with any other home equity loan. So you have a couple of different ways to tap into that money.

It's kind of like installing a faucet on the side of your house that you can turn on and off as you need it when the cash is necessary. Yeah, that's really helpful. Ben, Bill, I know you've studied this a good bit.

And that's great. Do you have any questions? Anything you Harlan can shed light on specifically related to your situation? Well, I want to take like a lump sum of or monthly, I don't know, I was debating, take a lump sum, it could be $250,000 and invest that in something and draw from that or take the monthly check with the reverse mortgage.

Yeah. Yeah, we really highly advise against taking a lump sum. Some, some firms do that, I would need to know more about your personal situation before I give advice over the phone.

But it's generally not a good idea to take it all out in the beginning, because the growth of your line of credit is typically between six and 8% will probably give you that return of that additional money available better than you trying to take risks on it. But again, it probably makes sense, I'd be happy to send a copy of my book to you as well, to just kind of give that thought or custom tailoring a plan specifically about what I would do if I were you in the same situation, but usually, it rarely makes sense to take a lump sum payment. Yeah, very good bill. Thanks for your call.

By the way, stay on the line to hero will get your information. We'll send you a copy of Harlan's book today home equity and reverse mortgages. I think it'll add to your level of understanding. By the way, folks, if you want to learn more, you can connect with Harlan and our friends at movement mortgage at slash faith.

That's slash faith. Before we head to this break, and we'll get to many more questions that are coming in Harlan here in just a moment. Quickly, though, explain why it is you said it'll grow the amount of the available in the line will grow between six to 8% a year. Is that coming because you're aging or because the home is appreciating or both? Well, kind of both, but the host does not have to appreciate for that to go up because over time, it usually does. So that number is set on the current interest rates, which are currently obviously higher. So that's a benefit to reverse mortgage folks, because that increases at a greater rate.

But we know that two things are happening, you're getting older, so there's going to be less time that you can enjoy the loan. And most likely the value of your house is going up. But we don't look at the value of your house, the increases tied to current interest rates, not to the value of the house. We only look at the value of the house one time because people worry about losing that growth when the value of the house could go down in the future.

Not everything always goes up as we know it 2008. Yeah, very good. That's helpful. Harlan Ackley here today.

We're talking stewardship of your home equity, specifically reverse mortgages. Got two lines open, 800, 525, 7,000. We'll get to many more questions with Harlan just around the corner. Don't go anywhere. We'll be right back. Thanks for joining us today on Faith and Finance Live. I'm Rob Wast with me today, my friend Harlan Ackley. He's with Movement Mortgage, an underwriter of this program.

We're talking about reverse mortgages and often misunderstood in the planning tool, especially during the retirement season of life. Harlan's taking your questions today. All the lines are full, so let's get right to it. Thanks for joining us today on Faith and Finance Live. I'm Rob Wast with me today, my friend Harlan Ackley. He's with Movement Mortgage, an underwriter of this program.

We're talking about reverse mortgages and often misunderstood in planning tool, especially during the retirement season of life. Harlan's taking your questions today. All the lines are full, so let's get right back to the phones to Huntley, Illinois. Hi, Bob. Go ahead, sir.

Thank you. I live in a 55 plus retirement community. I'm 77. The difference between what I owe on my house and what it's worth is about $165,000. How much of a line of credit could I expect with that much equity?

Yeah, I appreciate the equity there, Bob. Give us the current value of the home versus the mortgage as it stands today, roughly. $270 versus about $105. $270 versus $105.

All right, Harlan, your thoughts? Yeah, so you're going to be eligible at your age close to the 50% number, and so you'll accomplish kind of two birds with one stone. You'll wipe out your current payment, which is a huge issue with cash flow, bigger than what most people realize, because that's the first thing that gets paid off, and then you'll have about, probably, don't write this down as a firm number because actually the numbers change every Tuesday based on what the interest rates are at FHA, but you're looking at approximately a $20,000 to $25,000 line of credit in addition to wiping out your line of credit if the house comes out at about $270. That's net of all cost of what you actually have available, so you kind of kill two birds with one stone getting rid of that monthly mortgage payment and then getting the additional amount to use for other things that you need the cash flow for.

Does that make sense, Bob? Yeah, what's the current interest rate? Current interest rates are always about 250 basis points over the 10-year bond, and so that's just the technical numbers.

It's usually going to be about the same as a 30-year fixed-rate mortgage, so if the current 30-year is about 7%, our rates are about the same, closely regulated by FHA. Of course, you won't be making any payments, so a lot of people get nervous. Like when I did my reverse mortgage, I went from a 3.25% fix to an adjustable rate reverse that's always over 6%. A lot of people say, well, that doesn't really make sense. Well, it depends on what it made a lot of sense for me and for most other folks because it's not about the interest rate. It is about what is the overall picture in the financial plan. You don't want to look at it in just one thing.

You want to look at the whole picture, but it would make sense to take a little bit more of a look to see how that fits with all the rest of the things that you're doing. Bob, is that helpful? Okay, yeah, very much. Thank you. All right, God bless you, sir.

Out to Washington state. Hi, Daniel. Go ahead. Hey, can you hear me okay? Yes, sir.

Okay. My question is about my grandmother-in-law, actually, and we're trying to figure out how to help her. She has a reverse mortgage that is a number of years old.

I'm not exactly sure how old, but we're trying to figure out how to be able to get out of her house in California and possibly be able to move up to Washington. The problem is, from our estimation, it seems that if she were to sell her house, she wouldn't be able to get much out of the house because of the reverse mortgage. And again, I'm not an expert at reverse mortgages, but I believe it was a lump sum that she got, and that's not available anymore. And so she just doesn't pay anything for her house and lived in it. But my understanding is, if she sold it, she would be able to keep whatever is above what pays off the mortgage. That's right. Harlan, your thoughts?

Yeah, whatever. I mean, you should do a review on a reverse mortgage, just like you do on a forward mortgage or any other financial instrument every few years to just find out what's going on. So it would make sense, even if she plans on staying there, to do some review and see, does this make sense?

Should anything be changed? But whatever equity is left belongs to her. A lot of people sell their house and then take that equity and use that as a down payment on a purchase for another house. They don't pay cash for the next house. They do another reverse mortgage on the next house. If I ever moved out of my current house, I would not get another forward mortgage and I won't pay cash for a house. I just use the proceeds to use this down payment on the next one. So depending upon how much the value of her houses went up and how much equity is left, there's probably not going to be enough there to pay cash for the next house, but there would be enough money there probably for a down payment on the next house.

Hard to say exactly what the numbers are, but we'd be happy to go over that offline and just kind of figure out, is it possible? Because a lot of people sell one house and get another one using a reverse mortgage after they started with a reverse mortgage. Some people are on their third or fourth reverse mortgages just like they had three or four 30-year mortgages. Nothing unusual about that, but we just have to take a look at the numbers and see where she's moving. Is she downsizing, upsizing? A lot of factors, but very likely she could make the move and the reverse mortgage would be part of her equation at the new place. Daniel, I know you were going to clarify your question right there at the tail end.

Did that suffice or was there something else that you were wondering about? Yeah, how can we help her and if the value of the reverse mortgage it seems in the $300,000 range and that's probably close to what she would be able to sell her house for roughly. If those numbers about the same, does that mean it's just basically a wash and she walked out with zero dollars or am I thinking about it wrong?

Yeah, no. If she did it a long time ago and she's used a majority of the money on the house just like if you drew most of the money out of your 401k there's nothing left, that would be unusual with the big increases in houses but certainly possible. But if she owes close to what the value is there's not enough money there to be able to put it into the next house. But it just kind of depends on how much the value of her house has increased in comparison but she's had the reverse mortgage for 20, 30 years. Very good possibility that could be close to what the value is, just depends on the area and what the increase has been.

The good thing is that she's been able to live there free for a lot of years that's why the money was used from that perspective. Very good. Daniel, hope that helps.

I think you are thinking about this correctly in that absolutely when that house is sold because she moves or passes away ultimately whatever that balance is has to be satisfied and that may or may not leave equity that could then be rolled into another place. Thanks for your call today, sir. We're going to take a quick break back in our next segment with Harlan.

More questions on reverse mortgages right around the corner. Stay with us. Great to have you with us today on Faith and Finance Live. I'm Rob West. We're taking your calls and questions today. 800-525-7000.

With me Harlan Akula. He's with Movement Mortgage, an underwriter of this program and we're talking today about specifically reverse mortgages, an often misunderstood planning tool for that retirement season of life. Let's head right back to the phones to Indiana. We go, hi Lisa, thanks for calling today. How can we help?

Yes, thanks for taking my call. I just am curious and intrigued by this whole thing. I don't admittedly don't know a ton about reverse mortgages but my husband is in semi-retirement and we have been focusing really hard on paying off our mortgage. We owe maybe 140 on our loan and the house is worth a lot more and we're not strapped. So I'm just sort of intrigued by this whole thing with him talking about the kind of equity that you have.

Would you still advise paying off the mortgage? I'm just sort of questioning that now. I'm just intrigued by what you've been saying. Sure, yeah.

Let me offer some thoughts and then we'll get Harlan to weigh in as well. You know you will hear me often talk about getting out of debt completely including your home especially as you're heading into that retirement season of life. We see less folks as I mentioned earlier doing that today. Normally historically about half of folks would enter this season of life with a mortgage completely paid off. Now it's only about a third and so that means two-thirds have that largest expense every month. But if either you have a conviction around being debt free, certainly God's word affirms being completely unencumbered and so we like that idea of you being out of debt heading into retirement and perhaps staying that way. What we're saying here today is that this is an asset, your home equity. You could look at it as an asset just like you would a retirement account or an IRA or any number of other assets that you have property and the question is what is the best way to steward those assets in this season of life to be able to maintain your lifestyle, do the giving you want to do and then ultimately leave a spiritual inheritance and ultimately perhaps a financial inheritance as well to the next generation and often we will exclude the home equity from that planning conversation and what Harlan is saying is because it's not recourse debt meaning nobody can take go after you personally the only thing that serves as collateral for a reverse mortgage which is different than a conventional mortgage is the home. If they ever paid you out more than your home was worth and let's say the home lost value the government would step in and pay the balance and the second thing is that because so many folks are ill-prepared in this season of life and don't have the cash flow they need to maintain their quality of life or they get into expensive long-term care needs this can be an asset to tap into either in the form of a line of credit or a monthly income stream. So we're just raising this is perhaps a missed opportunity but Harlan anything you might want to add for Lisa just as you hear her thinking through this? Yeah Lisa that's the same thing that my wife and I faced two years ago we had a mortgage that we were still paying on and we weren't strapped we could afford to make the mortgage payment. We look at things when we work with clients that's what we call the three S's safety, stewardship and what is smart and from a safety perspective the good thing about a reverse mortgage is you don't have to make the decision to lose equity or go backwards you don't have to go in reverse it's an optional payment so your $140,000 mortgage right now you have no choice but to make a payment until it's paid off that is the borrower servant the lender thought process you must make those mortgage payments you can't call up and say we've got a lot of equity so we don't want to make a payment this month with a regular mortgage with a reverse mortgage you can do that every month the second thing is stewardship is is that the best place for your money to go could you do other things with it either by investing giving helping your family whatever other things God would lay on your heart is there a better place for that because once you get to 62 one of you you don't have to make that payment anymore so is there a better place to put it which leads right into the third S which is smart is there some place just from looking at forget about the Christian aspect and just secular is there a better place to put the money than into your home equity which is not liquid and not usable and some people are forced to do a reverse mortgage later in life because they have all of their money that they put there it will cost you in depending upon your interest rate and the time you have left somewhere between 160 180 200 000 to pay off the 140 000 mortgage is there a smarter place to put that 200 000 worth of cash flow so those are the three things that we consider with every one of our clients depending upon what else is going on in their life what their health situation is their investments and so on lisa is that helpful and does that generate any other questions in your mind yes it's yes it's very interesting i'm just curious if there was something you would recommend for me to go to to read more understand more just being new at this we can help with that we've got a book for you we'd love to send it to you so why don't you stay on the line we'll get your information and we'll put the book that came out just last year called understanding reverse simplifying the reverse mortgage in the mail to you and you and your husband can do some reading all right great that sounds great thank you all right stay on the line thanks for your call let's go to cleveland hi ruth i understand you have a question a little bit off our topic but i know you've been holding how can i help you today i do and thank you so much for taking my question i have an estate planning question my husband and i are in our mid-50s and we're looking ahead at being able to leave assets to our adult children but some of them are not very good at managing money so we want to know if there's a way to leave assets to them that will sustain them over a long period of time rather than being squandered right away and by the way i have to say that the reason we even have assets to leave to our children is because we started listening to larry burkett and following his advice 30 years ago i love that that's so great it's not a week that goes by lisa that doesn't somebody doesn't mention the late larry burkett and the impact that he's had on their lives so i'm so glad you mentioned that today you know i love that you're thinking about this and you know when we think about an inheritance we need to start with the spiritual capital as the primary objective recognizing that that's far more important and what's interesting is actually when we even look at the verse that's often cited around inheritances you know we think that it's talking about a financial inheritance and what we miss so often is that it really is talking about the passing a spiritual inheritance first and foremost so the first question is is the next steward not only chosen but prepared and so i think one of the key ideas is to be training them to be better stewards modeling that perhaps getting them involved in giving today maybe you put money in a donor advised fund and you know they're helping you give it away so whatever you can do telling the family story trying to systematically transfer those values i think is really key but regard that i mean beyond that there are the planning tools and that's where a revocable trust can be very helpful so a trust would allow you and your husband to disperse the assets over a period of time perhaps after certain conditions are met so you would meet with an estate planning attorney who would walk you through all this and you all would decide what that looks like i mean that for example might specify that a beneficiary receives a third of their inheritance at 25 and another third at 30 and a final third at 35 it could be you know based on conditions being met it might instruct that the distribution happens after they graduate from college or turn age 24 so i mean you have complete flexibility over it but that can be a tool to ensure that it happens the way you want and the nice thing about a revocable mortgage is that you can change that as they age and perhaps they're making different decisions you can modify the plan along the way does that make sense it sure does thank you you're welcome if you don't have an estate planning attorney just connect with a certified kingdom advisor there in cleveland on our website click find a professional any of them can refer you to a godly estate planning attorney and finally stay on the line i'm going to send you a book called splitting errors from ron blue i think it's the best book on this topic of wealth transfer from a biblical perspective back with our final segment with harland right after this stay with us thanks for joining us today on faith and finance live today we're talking reverse mortgages harland ackl is here with movement mortgage an underwriter of this program by the way if you want to learn more someone from harland's team could help you explain anything questions you have related to this topic at faith is where you can connect with someone faith harland before we head back to the phones we talked in the previous segment with a caller about estate planning and wealth transfer any thoughts you have looking at it through the lens of reverse mortgages yeah there's there's 12 trillion dollars as i mentioned at the top of the program and that's rising as people make payments and as home values go up and so this could be one of the largest wealth transfers that ever happens between the baby boomers and their children and the interesting thing is fannie may did a survey that 62 percent of the older americans plan to give their house to their kids and charles schwab did a survey about the same time that found that 70 percent of adult children would immediately sell the house when they inherited it so there's a disconnect on understanding of what that is and it's a huge amount of inheritance that's going to be passing on and sometimes it makes sense a reverse mortgage has been very powerful with a lot of estate planners that we've worked with because they started giving some of it away when they had control over what happened as that previous caller was concerned with the kids were going to do with it one of the worst things that can be done is you can't control when a house is sold the whole amount uh goes there yes if it's inside of a revocable trust you can control the money inside of it but sometimes it makes sense to give some of that money while you're alive so that you have control and you can also teach at the same time as you already mentioned yeah excellent very good all right back to the phones we go uh back out to washington state hi karen go ahead hi thanks for taking my call i recently visited my stepmother down in las vegas um she's 89 years old and my sister that i thought she had taken out a home equity loan to pay for some expensive dental wear about four or five years ago but it turns out what she did was she took out a reverse mortgage um her home is currently worth about 450 000 the reverse mortgage gave her 200 000 out of which she paid for her dental work and then some i don't know what she spent it on but she said that her home now belongs to the reverse mortgage company and that she can't sell it they will sell it and she won't see any of the appreciation of her home's value does that sound correct or do you think she's mistaken no harland well yeah that's uh uh the chances are she's mistaken uh all you would need to do is is get a statement that she receives she should receive a statement every month if she doesn't that's a big uh scary thing then it's not a truly reverse mortgage she actually entered into a contract to sell her home to an investor those are not reverse mortgages those are called shared equity loans uh sounds nice sharing equity nice words but they're dangerous because then you do give the equity away to the investor for the future movement mortgage will not do any of those they're not necessarily illegal but they certainly are something that we do not believe is in the best interest of the client in most situations i would be happy to take a look at the situation offline but if it's a heck of a home equity conversion mortgage a traditional reverse mortgage that we do she has not lost her house and a hundred percent of that 250,000 of equity belongs to her karen is that helpful comforting it is very helpful i'm going to have to do some more research i did ask her if she could show me paperwork and she didn't know where it was and she didn't indicate that she gets a monthly statement so i'm a little nervous but i will research it some more and i thank you for clarifying that for me yeah and if harland's team can help you investigate what she has if you get any documentation you can reach out again faith thanks for your call today uh let's go out to illinois hi sandra how can we help hello thank you for taking my call um basically my my question is what constitutes a reversal mortgage because i don't know if i qualify for it yeah what is your age sandra i'm going to be 62 in june this june 62 in june and uh what is your home worth what is your home worth um it's i'm sorry i know we purchased it at 200,000 and right now we're all 85. okay yeah very good uh harland a simple explanation and by the way after you were done here sandra stay on the line and we'll send you a book called understanding reverse that will give you all that you need to know about what is a reverse mortgage but harland anything you want to share with sandra uh sure sandra the the biggest most important thing is the question that rob already asked is your age you must be 62 to qualify for the majority of reverse mortgages that are available in the country and the second thing is you have to have more than 50 equity uh depending upon your age and some other factors so on the surface yes you would qualify what you need to do is just get more specific about those numbers because you've got a birthday coming up pretty soon and it's a perfect time to look at it i did mine the day after my 62nd birthday i'm not saying that everyone should but the short answer is yes you qualify but you should look into more details as to whether or not it fits rob has frequently said this is a planning tool and this should not be something that is done individually but in planning with your social security and planning with what the other assets that you have and how long you plan on living in the house and so on but on the surface it certainly is something that you should check out at this stage of life and it's a good thing you called in yeah very good stay on the line sandra we'll put a copy of that book right in the mail to you let's go to uh ohio hi timothy go ahead yes wow thank you i appreciate y'all's show i've been listening to y'all so where's the cat and y'all do a fantastic job well thank you my question is i got a house that is appraised right now at like 283 000 i started out paying 127 000 mortgage but over the years because of the the the world and everything else going on they told me it's worth 283 but i took out i refinanced it about maybe 20 years ago 15 to 20 years ago and my mortgage is 1100 dollars but that's including taxes and uh what's what's that little one called insurance well right now both my wife is alone on social security i'm on social security and everything that the houses are still a1 condition and a1 neighborhood and all that but people are asking me they'll buy my house tomorrow for 280 000 right but we're i'm 66 my wife is 68 or 69 i forget and uh i got a few repairs i gotta do a house minor repairs and but i'm looking into the reverse mortgage and i just don't understand that they well what i heard about reverse mortgage now i got two two brother-in-laws and the cousin into real estate and they said it's the worst thing in the world i can do but at the same time i was told that we get our home equity line of credit we've both got bad credit scores right now something like 650 or something like that right and nobody wants to refinance i'm at six point uh i think it's like five five something interest rate on a fixed income yeah very good uh harland any thoughts for tim well yeah tim i i think uh you know what we often do is we have brother-in-laws or we have cousins or whatever that say it's the worst thing and and full disclosure 25 years ago i told people that these were a rip-off and they should stay away from them because i was ignorant i didn't know what i was talking about even though i was a mortgage person um and so when i learned about it i certainly changed what my advice was as to how it is used so whenever we talk to someone like yourself we include the brother-in-laws or we include the other people that are giving you are giving you advice to make sure that we're addressing all of those concerns but on a fixed income to continue to make a mortgage payment for the rest of your life when things are a little bit tight uh probably is not the smartest thing to do or even from a stewardship standpoint like we talked about with the previous caller so it's certainly something you should check out and and uh take a look at whether or not this makes sense to continue we're not that concerned about your credit score we're more concerned that you pay your taxes on time so we're not like a traditional home equity line of credit or a 30-year mortgage it's very different as to how you qualify for a reverse it's likely that you would based on the information that you just shared uh in rough numbers so uh reach out to our uh and and we'll take a closer look at the details very good we'll send you a copy of this book understanding reverse timothy and i think that'll be helpful to you as well just as you do some further education ken unfortunately we're out of time i'm not going to be able to get to your call today i know you're asking how to get more information we were grateful for our time today with harland akala movement mortgage is an underwriter and you can learn more at faith including connecting with somebody that can answer your questions harland we're about out of time final thoughts here before we wrap up today well i think the important thing is like we talked about planning it's hard to answer some of these questions in a few minutes that come in in the radio but if you're over 62 and you own a house and you have equity in the house it simply is a wise thing from a stewardship standpoint as well as simply from a wisdom standpoint to take a look at what should you do with this and how should you make your payments should you continue to make those payments how does it fit in with taxes how does it fit in with the estate planning and it's so often neglected and ignored and just set aside as something in a silo and it should be part of your overall planning uh in retirement so that it fits in with what your goals are and things don't happen by default and we sure appreciate the opportunity to get this out to the christian community because as as christians we need to be just a kind of a step ahead with everything that's going on and we're thankful for all we can do to help the kingdom well i'm thankful for you harland always enjoy my time with you my friend thanks for joining us on the program today thank you all right god bless you buddy uh folks if you want to learn more go to faith well we covered a lot of ground today here's the big idea it's not a one-size-fits-all it's ultimately having the knowledge the understanding and ultimately the biblical truth so you can apply that to your role as a steward of god's money faith and finance lives a partnership between moody radio and faith five big thanks to my team today big team today gabby t tiara tahira dan jim and harland on behalf of everybody here at faith five thanks for being along with us if you want to support our work just go to and click give and we'll see you tomorrow bye
Whisper: medium.en / 2024-06-04 20:44:27 / 2024-06-04 21:01:05 / 17

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