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Season 6 Episode 3 Understanding Reverse Mortgages with expert, Harlan Accola

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Many people dismiss reverse mortgages based on misconceptions. Watch & listen to this episode to learn more about the benefits of using a reverse mortgage as a part of your overall financial plan.

Meet our guest:

HARLAN ACCOLA, National Reverse Mortgage Director, Author of the book, Home Equity and Reverse Mortgages.

Harlan Accola has been in the mortgage industry for more than 20 years and is widely recognized as an authority on reverse mortgage loans and retirement finance issues.

The most rewarding part of his career has been helping homeowners and homebuyers aged 62 and older to realize the benefits of reverse mortgages and achieve better retirements.

In this episode, Harlan highlights that home equity, often overlooked, constitutes a significant asset for retirees—nearly $14 trillion is tied up in seniors’ homes. This equity is frequently unmanaged and is rarely utilized effectively, often passed to heirs who may not value it.

Using Reverse Mortgages:

  • Leverage home equity to fund experiences and memories with family while still alive, such as vacations.
  • Homeowners can withdraw cash from their reverse mortgage and gift it directly to their children. Since the funds from a reverse mortgage are tax-free, this can be a way to help with expenses like education or a home purchase.
  • Utilize funds from a reverse mortgage for various purposes such as home repairs or modifications, long-term care funding, and more.

    • Eligibility and Rules:

    • Eligibility begins at age 62 (some states allow it at 55).
    • The reverse mortgage is federally insured, ensuring access to funds and protecting heirs from debt if the home value decreases.
    • Upfront costs include a 2% fee based on the home’s value, which is deducted from the loan and not paid out-of-pocket.

      • If you have questions about this topic or would like to know more about how Wise Wealth can help you with your unique situation, feel free to reach out.

      www.wisewealth.com/contact-us

      816.246.WISE (9473)

      [email protected]

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      UncategorizedBy Stephen Stricklin, CFP®