WHAT IS THE DEAL WITH REVERSE MORTGAGES?

Spectra Mortgage entered the reverse mortgage market in 2018 and we are now able to provide the same type of financial advice and information on reverse mortgages that we have provided our clients over the last 13 years regarding their mortgage options.

The primary reason Wayne chose to enter this market is because he knows that too often people are not able to get the information they need to determine if a reverse mortgage is something they should consider or something that might benefit them. With all due respect to Tom Selleck, he does a terrible job as a reverse mortgage spokesperson.  Also, people do not want to deal with a sales person over the phone who may only be interested in making a sale and is not capable of providing the information needed to understand and evaluate a reverse mortgage.

As most of you know, Wayne began his career as a CPA, and for the last 13 years he has been involved in the mortgage industry as the owner of Spectra Mortgage. Prior to that, he was a tax advisor to businesses and individuals.  Spectra Mortgage believes that a reverse mortgage is a financial product that can facilitate and enhance financial and retirement planning and is an option that should be explored by a wide range of people at different points of their life.  A reverse mortgage is primarily used for one of the following purposes:

  • To meet an immediate need
  • For financial and retirement planning and to help in reaching those goals; and
  • For lifestyle reasons

Most people, including financial planners and other advisors such as attorneys and CPA’s, do not have even a basic understanding of what a reverse mortgage is, how it works and when and why they can be beneficial. Even worse, what many people think they know about reverse mortgages is wrong or incomplete and based on inaccurate information.

A reverse mortgage can have many financial and non-financial benefits. Following is a partial list of how a reverse mortgage may be able to benefit a homeowner:

  • Increase and stabilize income, manage cash flow and preserve assets during retirement
  • Achieve other financial planning goals and objectives
  • Develop strategies for aging in the current home rather than being forced to move
  • Allow a surviving spouse the financial ability to remain in their home if desired
  • Downsize and/or relocate while preserving funds for other retirement needs
  • Fund long-term care needs and medical expenses
  • Provide the cushion and reserves needed to deal with unexpected financial obligations
  • Minimize or eliminate the need to financially rely upon or burden other family members

There is a common perception that reverse mortgages are only for people who are desperate. While they can in fact be life savers for people in difficult financial circumstances, the reality is that the wealthier someone is and the more assets they need to protect, the more benefits they may be able to obtain from a reverse mortgage.

For the reasons stated above, we believe reverse mortgages are a good fit for what Spectra Mortgage does and feel like we can do a great job of helping our clients understand this unique financial product. If you, a family member, or a friend would like to learn about how reverse mortgages work, how and why they are used, and get solid information rather than a sales pitch, we are ready to offer this to all our clients. Don’t hesitate to call or email us if you or someone you know wants more information.