There is a saying the best time to plant a tree is right now. Does that logic apply to inheritances? Hi, I'm Rob West. Well, it just might in some cases. In other words, is there a benefit to giving your kids an early inheritance? And how exactly would you do that? Harlan Accola joins us today to talk about how a reverse mortgage could accomplish that. And then it's on to your questions at 800 525 7000. That's 800 525 7000. This is faith in finance. Live. Biblical wisdom for your financial decisions. Well, Harlan Accola joins us again today. Harlan is a faithful Christ follower. He's a good friend of ours, and he's an expert on reverse mortgages. He actually wrote the book on the topic. He's with movement mortgage and underwriter of this program. Harlan, great to have you back.

There is a saying the best time to plant a tree is right now. Does that logic apply to inheritances? Hi, I'm Rob West. Well, it just might in some cases. In other words, is there a benefit to giving your kids an early inheritance? And how exactly would you do that? Harlan Accola joins us today to talk about how a reverse mortgage could accomplish that. And then it's on to your questions at 800 525 7000. That's 800 525 7000. This is faith in finance. Live. Biblical wisdom for your financial decisions. Well, Harlan Accola joins us again today. Harlan is a faithful Christ follower. He's a good friend of ours, and he's an expert on reverse mortgages. He actually wrote the book on the topic. He's with movement mortgage and underwriter of this program. Harlan, great to have you back.

Oh, it's wonderful to be with you again and be of help to some folks who might be listening.

Oh, it's wonderful to be with you again and be of help to some folks who might be listening.

Well, I'm looking forward to that. We're going to dive into this topic here in just a moment. But let me mention, while Harlan is here, we will prioritize those questions on reverse mortgages. Perhaps it's something you've heard of in the past. Maybe you've heard of a different variety that got a lot of bad reviews for good reason. And you want to know the difference between that and what we're going to talk about today, or you just want to lean into this topic. The number is 800 525 7000. Harlan is going to stick around for the entire program, so we'll look forward to hearing those questions from you. But, Harlan, perhaps we could start with a definition. You know, we're talking today, as I mentioned, about a specific type of reverse mortgage called a home equity conversion mortgage or a hecm for short. So why don't you begin by sharing what that is, and perhaps how it differs from other types of reverse mortgages that folks may have heard of in the past?

Well, I'm looking forward to that. We're going to dive into this topic here in just a moment. But let me mention, while Harlan is here, we will prioritize those questions on reverse mortgages. Perhaps it's something you've heard of in the past. Maybe you've heard of a different variety that got a lot of bad reviews for good reason. And you want to know the difference between that and what we're going to talk about today, or you just want to lean into this topic. The number is 800 525 7000. Harlan is going to stick around for the entire program, so we'll look forward to hearing those questions from you. But, Harlan, perhaps we could start with a definition. You know, we're talking today, as I mentioned, about a specific type of reverse mortgage called a home equity conversion mortgage or a hecm for short. So why don't you begin by sharing what that is, and perhaps how it differs from other types of reverse mortgages that folks may have heard of in the past?

Sure, Rob. It really started back in 1988 during Reagan's term, and it was a very specific, uh, it was was brought for a very specific reason, because there was all kinds of bad programs out there. And Reagan knew that there was a need for something that was safe. And so it's a federally insured program that allows you to use somewhere between 30 to 70% of the value of your house in the form of a line of credit or monthly checks, which are sometimes lump sum, whatever works out best. And it is tax free income that can be used at any time during retirement after you turn 62. And the big thing is, is it can't be canceled, it can't be taken away for as long as you live in the house. And it's non-recourse. So even if the value of the mortgage goes up and the value of the house goes down, you can't saddle your children with a debt. It's an absolute guarantee that you will never lose, um, or create a debt for your children. And you always own the house. There's no ownership change. You're in charge of the house whether you want to sell it or whether you want to remodel it or whatever. Just like any other mortgage, there's responsibility there. But the big thing is there's never a required payment up to age 150, which we're not worried about anybody reaching that yet.

Sure, Rob. It really started back in 1988 during Reagan's term, and it was a very specific, uh, it was was brought for a very specific reason, because there was all kinds of bad programs out there. And Reagan knew that there was a need for something that was safe. And so it's a federally insured program that allows you to use somewhere between 30 to 70% of the value of your house in the form of a line of credit or monthly checks, which are sometimes lump sum, whatever works out best. And it is tax free income that can be used at any time during retirement after you turn 62. And the big thing is, is it can't be canceled, it can't be taken away for as long as you live in the house. And it's non-recourse. So even if the value of the mortgage goes up and the value of the house goes down, you can't saddle your children with a debt. It's an absolute guarantee that you will never lose, um, or create a debt for your children. And you always own the house. There's no ownership change. You're in charge of the house whether you want to sell it or whether you want to remodel it or whatever. Just like any other mortgage, there's responsibility there. But the big thing is there's never a required payment up to age 150, which we're not worried about anybody reaching that yet.

Yeah. Exactly. Right. And that is a big idea. Now, where did we go wrong in the past with the other varieties of reverse mortgages that someone may have heard of?

Yeah. Exactly. Right. And that is a big idea. Now, where did we go wrong in the past with the other varieties of reverse mortgages that someone may have heard of?

Well, the the key word is shared equity. That actually sounds kind of nice. A sharing is a nice word and equity sounds good. But shared equity loans mean that you are not really the only owner of your house anymore. The investor goes on title and that is completely different. It's kind of like selling your house and it can be called early. You can get kicked out of the house early. You might your wife might get kicked out of the house after you pass away. Very dangerous situation and very rarely something that should ever be used. And nothing that we work with at Movement Mortgage for sure.

Well, the the key word is shared equity. That actually sounds kind of nice. A sharing is a nice word and equity sounds good. But shared equity loans mean that you are not really the only owner of your house anymore. The investor goes on title and that is completely different. It's kind of like selling your house and it can be called early. You can get kicked out of the house early. You might your wife might get kicked out of the house after you pass away. Very dangerous situation and very rarely something that should ever be used. And nothing that we work with at Movement Mortgage for sure.

Yeah. That's helpful. Well, Harlan, we're going to talk today, in addition to taking questions from our listeners specifically about how a reverse mortgage as a planning tool in the fourth quarter of life, probably your biggest asset, I think when we talked earlier today, you said $14 trillion in home equity. What if it was considered as a part of the assets to be used in retirement? By the way, it happens to be a tax free asset. And could that help with an early inheritance set that up for us?

Yeah. That's helpful. Well, Harlan, we're going to talk today, in addition to taking questions from our listeners specifically about how a reverse mortgage as a planning tool in the fourth quarter of life, probably your biggest asset, I think when we talked earlier today, you said $14 trillion in home equity. What if it was considered as a part of the assets to be used in retirement? By the way, it happens to be a tax free asset. And could that help with an early inheritance set that up for us?

Well, I think if you ask anyone that's listening, do you know what your children are giving money to right now and do? Is it something that you're going to be happy with when they start giving your money away in the future?

Well, I think if you ask anyone that's listening, do you know what your children are giving money to right now and do? Is it something that you're going to be happy with when they start giving your money away in the future?

Yeah, that's exactly right. And I think the big idea here is we want to transfer wisdom before wealth. We talk a lot about that. In fact, we've got a whole study on the book of Ecclesiastes coming out in early May for our faith life partners. They'll get a copy of it. But it's a deep dive into this topic. And, you know, I think this is the big idea here. And could you begin to transfer those values through your giving, through maybe some mission trips, maybe some additional vacations? We'll unpack that just around the corner. Harlan. Akila here today we're talking reverse mortgages 800 525 7000. We'll be right back.

Yeah, that's exactly right. And I think the big idea here is we want to transfer wisdom before wealth. We talk a lot about that. In fact, we've got a whole study on the book of Ecclesiastes coming out in early May for our faith life partners. They'll get a copy of it. But it's a deep dive into this topic. And, you know, I think this is the big idea here. And could you begin to transfer those values through your giving, through maybe some mission trips, maybe some additional vacations? We'll unpack that just around the corner. Harlan. Akila here today we're talking reverse mortgages 800 525 7000. We'll be right back.

The opinions offered during this program represent the personal or professional opinions of the participants, given for informational purposes only. Any information provided is not intended to replace advice from a financial, medical, legal, or other professional who understands your specific situation.

The opinions offered during this program represent the personal or professional opinions of the participants, given for informational purposes only. Any information provided is not intended to replace advice from a financial, medical, legal, or other professional who understands your specific situation.

Great to have you with us today on Faith in finance live. We're talking reverse mortgages today and specifically whether it can be a tool for an early inheritance. We'll get back to that here in just a moment. We do have lines open. We will be taking your questions, prioritizing those questions today, specifically on this topic of reverse mortgages. While reverse mortgage expert Harlan Akil is here today. 800 525 7000 is the number to call. We do have some lines open. Again, that's 800 525 7000. You can call right now. Uh, Harlan, let's get back to this here just for a moment, because, you know, as we say here often on this program, you know, the big idea is, listen, if you want to get out of debt and stay there, great. Do it. We love to talk about you being debt free. I will say that often this idea of a reverse mortgage is a misunderstood tool, just as one of those planning tools. You know, when we look at how we're going to fund retirement. How we're going to strategically leverage assets for God's glory, how we're ultimately going to transfer it to the next steward. I think we have to consider every asset, and that includes our home equity. This happens to be one where a lot of money is tied up. It essentially is tax free. It's after tax dollars. And as it relates to the conversation today, Harlan, we're talking about how it could be tapped into to be able to invest in the next generation now. So unpack what that could look like.

Great to have you with us today on Faith in finance live. We're talking reverse mortgages today and specifically whether it can be a tool for an early inheritance. We'll get back to that here in just a moment. We do have lines open. We will be taking your questions, prioritizing those questions today, specifically on this topic of reverse mortgages. While reverse mortgage expert Harlan Akil is here today. 800 525 7000 is the number to call. We do have some lines open. Again, that's 800 525 7000. You can call right now. Uh, Harlan, let's get back to this here just for a moment, because, you know, as we say here often on this program, you know, the big idea is, listen, if you want to get out of debt and stay there, great. Do it. We love to talk about you being debt free. I will say that often this idea of a reverse mortgage is a misunderstood tool, just as one of those planning tools. You know, when we look at how we're going to fund retirement. How we're going to strategically leverage assets for God's glory, how we're ultimately going to transfer it to the next steward. I think we have to consider every asset, and that includes our home equity. This happens to be one where a lot of money is tied up. It essentially is tax free. It's after tax dollars. And as it relates to the conversation today, Harlan, we're talking about how it could be tapped into to be able to invest in the next generation now. So unpack what that could look like.

Well, I think the big thing to be aware of is that everybody wants to teach their children, even when they're little. We work with allowances and teach them how to give and save and spend, and we want to guide our children about what to do with money. That should not end when we get older. We have this huge asset that we cannot take with us. Um, as you mentioned, it's $14 trillion with a T. That's the largest asset class that has ever existed in any country in the world that belongs to people just over the age of 62. In their fourth quarter of life. And the clear goal for me and for most of the people that I've ever worked with, and I'm sure most of the listeners on on the call today is that the the clear goal is to make sure that our wealth goes to the right places and for the right reasons, and that we give away our wealth with our wisdom. As you mentioned before, biblical wisdom. And it's far easier to teach and control and guide when that wealth is given during a lifetime. For example, when I'm taking money out of my house, I'm not creating a debt, I'm just using some of the money that is inside my house that will be paid off with the increase in the value of the house. You can help your adult children as perhaps they want to buy a house because many younger people can't afford to buy a house unless they have a very large down payment, or they get help from their parents. Well, we can use some of the wealth in the house to give to them tax free so they can afford to buy a house with the increases in the cost of the houses and of course, the interest rates. Another thing is just helping out the grandchildren. Uh, there are a lot of my friends want to make sure that their grandkids go to private Christian schools. Uh, with a lot of the concerns that's going on in public schools. My kids went to public schools, but it's a little bit different in today's world. And I think one of the big things is, is that if we use that money now to teach our kids and our grandkids, that will preserve a heritage that they know what to do going forward. And one of the ways that we do that is with reverse mortgage vacations or mission trips. Uh, at movement, we call them vision trips, where we go to different areas and help people that are less fortunate than ourselves. And when you can do that with your children and grandchildren, it speaks much louder than any letter or any Bible verse that we would send to them. Does an actual is showing them how we can be of help and use our money and our worldly wealth to help those who are less fortunate than ourselves.

Well, I think the big thing to be aware of is that everybody wants to teach their children, even when they're little. We work with allowances and teach them how to give and save and spend, and we want to guide our children about what to do with money. That should not end when we get older. We have this huge asset that we cannot take with us. Um, as you mentioned, it's $14 trillion with a T. That's the largest asset class that has ever existed in any country in the world that belongs to people just over the age of 62. In their fourth quarter of life. And the clear goal for me and for most of the people that I've ever worked with, and I'm sure most of the listeners on on the call today is that the the clear goal is to make sure that our wealth goes to the right places and for the right reasons, and that we give away our wealth with our wisdom. As you mentioned before, biblical wisdom. And it's far easier to teach and control and guide when that wealth is given during a lifetime. For example, when I'm taking money out of my house, I'm not creating a debt, I'm just using some of the money that is inside my house that will be paid off with the increase in the value of the house. You can help your adult children as perhaps they want to buy a house because many younger people can't afford to buy a house unless they have a very large down payment, or they get help from their parents. Well, we can use some of the wealth in the house to give to them tax free so they can afford to buy a house with the increases in the cost of the houses and of course, the interest rates. Another thing is just helping out the grandchildren. Uh, there are a lot of my friends want to make sure that their grandkids go to private Christian schools. Uh, with a lot of the concerns that's going on in public schools. My kids went to public schools, but it's a little bit different in today's world. And I think one of the big things is, is that if we use that money now to teach our kids and our grandkids, that will preserve a heritage that they know what to do going forward. And one of the ways that we do that is with reverse mortgage vacations or mission trips. Uh, at movement, we call them vision trips, where we go to different areas and help people that are less fortunate than ourselves. And when you can do that with your children and grandchildren, it speaks much louder than any letter or any Bible verse that we would send to them. Does an actual is showing them how we can be of help and use our money and our worldly wealth to help those who are less fortunate than ourselves.

Yeah, that's really helpful. We're going to be getting to your calls here in just a moment. Prioritizing those on reverse mortgages today. 800 525 7000 Harlan, I know you actually did this in your own life. Explain why you took out a reverse mortgage and how that's been meaningful to you.

Yeah, that's really helpful. We're going to be getting to your calls here in just a moment. Prioritizing those on reverse mortgages today. 800 525 7000 Harlan, I know you actually did this in your own life. Explain why you took out a reverse mortgage and how that's been meaningful to you.

Yeah, it's you know, it's a kind of when you go into any restaurant, you always feel better when the family in the back is, is eating what, what the cook is actually making. And so it's something that I've always done is how does this fit into my own personal situation? We have four sons, so if we leave behind a house for them, well, they just get one house. But we made sure that all four of them could afford to buy a house, and all of them are building some of their own home equity. And they have four houses rather than just inheriting one. When we pass away. And we're certainly we try to every year, um, take our family on, uh, either individually or on a group trip so that we can spend time with them and really share, uh, what our thoughts are, what our beliefs are, what our values are. And sometimes you don't have time to do that, especially when you got kids running around and you're just getting together for a meal at night, or you have a breakfast meeting or something like that. You just don't have the time when you're with someone for a week at a time, uh, 24 hours a day. It allows you to spend more of that time. And those are even my kids say to, to us and our, our daughter in laws that those are some of the best memories that they've had in the last several years. I think that I'm not alone in that. And there's so many families that need to realize the importance of actually talking about the things that really matter, because sometimes you don't get a chance to talk, even after church or after a meal, to really go into the things that are the most important. And money is one of the things that allows you to do that. And as a heritage, that's way more important than leaving some home equity behind. And we're just using part of our home equity. We didn't need the money, but we certainly can afford to be more generous when we have no house payment. And we're using some of that equity while we're alive.

Yeah, it's you know, it's a kind of when you go into any restaurant, you always feel better when the family in the back is, is eating what, what the cook is actually making. And so it's something that I've always done is how does this fit into my own personal situation? We have four sons, so if we leave behind a house for them, well, they just get one house. But we made sure that all four of them could afford to buy a house, and all of them are building some of their own home equity. And they have four houses rather than just inheriting one. When we pass away. And we're certainly we try to every year, um, take our family on, uh, either individually or on a group trip so that we can spend time with them and really share, uh, what our thoughts are, what our beliefs are, what our values are. And sometimes you don't have time to do that, especially when you got kids running around and you're just getting together for a meal at night, or you have a breakfast meeting or something like that. You just don't have the time when you're with someone for a week at a time, uh, 24 hours a day. It allows you to spend more of that time. And those are even my kids say to, to us and our, our daughter in laws that those are some of the best memories that they've had in the last several years. I think that I'm not alone in that. And there's so many families that need to realize the importance of actually talking about the things that really matter, because sometimes you don't get a chance to talk, even after church or after a meal, to really go into the things that are the most important. And money is one of the things that allows you to do that. And as a heritage, that's way more important than leaving some home equity behind. And we're just using part of our home equity. We didn't need the money, but we certainly can afford to be more generous when we have no house payment. And we're using some of that equity while we're alive.

Yeah. That's helpful. And the vast majority of heirs sell the home when they receive it after mom and dad pass away. Isn't that true?

Yeah. That's helpful. And the vast majority of heirs sell the home when they receive it after mom and dad pass away. Isn't that true?

Well, it's over 90%. And sometimes they have to sell it at a bad time when it's not a great time to sell. Maybe the 2008 to 2012 was a horrible time to inherit a house, and it's something that can tend to be a bit of a burden and a concern and quite frankly, sometimes even create some infighting. But so many people think, well, my kids will want to live here. And that is such a rare situation. Sometimes, if it's a house on a lake or a family home on in the mountains or something, that's different, if it's a an asset that is is used for the whole family. But most of the time that house is sold. So if we give away some of that equity while we're alive, we're going to give it away anyhow. It's just that when we're giving, while we're alive, um, that is something that has so much more value and control, and we can see the results of that right away and know where that's going.

Well, it's over 90%. And sometimes they have to sell it at a bad time when it's not a great time to sell. Maybe the 2008 to 2012 was a horrible time to inherit a house, and it's something that can tend to be a bit of a burden and a concern and quite frankly, sometimes even create some infighting. But so many people think, well, my kids will want to live here. And that is such a rare situation. Sometimes, if it's a house on a lake or a family home on in the mountains or something, that's different, if it's a an asset that is is used for the whole family. But most of the time that house is sold. So if we give away some of that equity while we're alive, we're going to give it away anyhow. It's just that when we're giving, while we're alive, um, that is something that has so much more value and control, and we can see the results of that right away and know where that's going.

Yeah. And it's possible to get part of the proceeds to heirs while maintaining the reverse mortgage. Right?

Yeah. And it's possible to get part of the proceeds to heirs while maintaining the reverse mortgage. Right?

Well, I always encourage people, take care of yourself first. Don't become a burden to your children. Make sure you get your long term health care in place. And it's not all about giving everything away. Some people can't afford to give things away because they need to take care of themselves and make sure that they're not a burden. So you but you can do a little bit of both. And that's a great privilege to be able to do that.

Well, I always encourage people, take care of yourself first. Don't become a burden to your children. Make sure you get your long term health care in place. And it's not all about giving everything away. Some people can't afford to give things away because they need to take care of themselves and make sure that they're not a burden. So you but you can do a little bit of both. And that's a great privilege to be able to do that.

Yeah. Excellent. All right. We're going to dive into your questions right after this break. We do have lines open. We've got room for you. 800 525 7000. Harland Akil is here today. He's an expert in reverse mortgages with Movement Mortgage, an underwriter of this program. You can learn more and connect with Harland and his team at movement Comm. Slash faith. That's movement. Dot com slash faith. A quick break and back with much more after this. Stick around. Great to have you with us today on faith in finance. Live. Helping you see God is your ultimate treasure. We want to come alongside you and help you be a wise and faithful steward of God's money. That's what we do each day on this program. We're so thankful you're along with us today. Today we're joined by our good friend, Harlan Accola. He's with Movement Mortgage and underwriter of this program, and we're talking specifically about reverse mortgages. The idea that perhaps as one of the planning tools you consider to provide income or to be able to tap into in that fourth quarter of life, home equity is often overlooked. And yet with a home equity conversion mortgage, no payment required, no ability to lose your home, never any recourse. Meaning the only thing that collateralize the loan is the home itself. No personal guarantee. It is a great tool that's often not considered. We're going to take your questions today. I know there's a lot of questions on this topic, and we've got room for you. Harlan is looking forward to tackling those questions today. So if you have a question on reverse mortgages, specifically what they are, how it might work in your situation. Or maybe you have one now and have questions about it. Call right now 800 525 7000. Let's begin in Chicago. Hazel, you'll be our first caller. Go ahead.

Yeah. Excellent. All right. We're going to dive into your questions right after this break. We do have lines open. We've got room for you. 800 525 7000. Harland Akil is here today. He's an expert in reverse mortgages with Movement Mortgage, an underwriter of this program. You can learn more and connect with Harland and his team at movement Comm. Slash faith. That's movement. Dot com slash faith. A quick break and back with much more after this. Stick around. Great to have you with us today on faith in finance. Live. Helping you see God is your ultimate treasure. We want to come alongside you and help you be a wise and faithful steward of God's money. That's what we do each day on this program. We're so thankful you're along with us today. Today we're joined by our good friend, Harlan Accola. He's with Movement Mortgage and underwriter of this program, and we're talking specifically about reverse mortgages. The idea that perhaps as one of the planning tools you consider to provide income or to be able to tap into in that fourth quarter of life, home equity is often overlooked. And yet with a home equity conversion mortgage, no payment required, no ability to lose your home, never any recourse. Meaning the only thing that collateralize the loan is the home itself. No personal guarantee. It is a great tool that's often not considered. We're going to take your questions today. I know there's a lot of questions on this topic, and we've got room for you. Harlan is looking forward to tackling those questions today. So if you have a question on reverse mortgages, specifically what they are, how it might work in your situation. Or maybe you have one now and have questions about it. Call right now 800 525 7000. Let's begin in Chicago. Hazel, you'll be our first caller. Go ahead.

Hi. Good afternoon. Thank you for taking my call. My husband and I, we are over the age of 65, and we have a mortgage and with a balance of 29,000. And I was wondering if it is okay to pay that off.

Hi. Good afternoon. Thank you for taking my call. My husband and I, we are over the age of 65, and we have a mortgage and with a balance of 29,000. And I was wondering if it is okay to pay that off.

Yeah. So tell me a little bit more about it. What is the interest rate on it?

Yeah. So tell me a little bit more about it. What is the interest rate on it?

4.25%.

4.25%.

All right. And you said you owe a little more than 29,000. So you're still making a payment on it because it's a conventional mortgage, correct?

All right. And you said you owe a little more than 29,000. So you're still making a payment on it because it's a conventional mortgage, correct?

Yes.

Yes.

Okay. And where would the funds come from for you to pay that off, Hazel?

Okay. And where would the funds come from for you to pay that off, Hazel?

Um, we we have an account that is set up just for the home, for payment of the home? Yes.

Um, we we have an account that is set up just for the home, for payment of the home? Yes.

Okay. Very good.

Okay. Very good.

Yeah.

Yeah.

And so if you paid it off, you'd have plenty of other liquid assets to cover your reserves.

And so if you paid it off, you'd have plenty of other liquid assets to cover your reserves.

Yes. And we're still working.

Yes. And we're still working.

Okay. All right. Very good. And I was going to ask, so what is the plan when you decide to transition to whatever God has next? Either you can no longer work or you transition to something that is not paid. What would be your income sources at that point?

Okay. All right. Very good. And I was going to ask, so what is the plan when you decide to transition to whatever God has next? Either you can no longer work or you transition to something that is not paid. What would be your income sources at that point?

We have some savings. Um, we have some money set aside for retirement. Yeah. And the whole the home would just go to our daughter. We didn't want to leave it to her with. With any balance. An outstanding balance. So that's what we're aiming to do.

We have some savings. Um, we have some money set aside for retirement. Yeah. And the whole the home would just go to our daughter. We didn't want to leave it to her with. With any balance. An outstanding balance. So that's what we're aiming to do.

Okay. Yeah. Then I don't know if that's the case. And especially if you've got funds earmarked for this. I mean, right now you might be able to break even. You know, you're paying 4.125% interest on the loan. You may be able to offset that with the same type rate. You know, in savings, high yield savings or a CD. But after tax, you're probably going to be slightly less than that. So I would say if your goal is to own it free and clear, pass it on to her, free and clear. Then assuming that's what you and your husband have decided and she wants it, then I would say, yeah, go ahead and pay it off and be done with it. That alleviates that mortgage payment which gives which frees up more money to give or to put back into additional savings. But sounds like you've got a great plan here, Hazel, and I'm on board with it for sure. Thanks for calling today. Uh, let's see, we're going to go to Ohio. Timothy. Go ahead.

Okay. Yeah. Then I don't know if that's the case. And especially if you've got funds earmarked for this. I mean, right now you might be able to break even. You know, you're paying 4.125% interest on the loan. You may be able to offset that with the same type rate. You know, in savings, high yield savings or a CD. But after tax, you're probably going to be slightly less than that. So I would say if your goal is to own it free and clear, pass it on to her, free and clear. Then assuming that's what you and your husband have decided and she wants it, then I would say, yeah, go ahead and pay it off and be done with it. That alleviates that mortgage payment which gives which frees up more money to give or to put back into additional savings. But sounds like you've got a great plan here, Hazel, and I'm on board with it for sure. Thanks for calling today. Uh, let's see, we're going to go to Ohio. Timothy. Go ahead.

Yes, Rob.

Yes, Rob.

Yes, sir.

Yes, sir.

I'm 67 and my wife is about two years older than me. Don't want to mention her age, but anyway, we're thinking about the reverse mortgage. I called you in before, and I got the book from you, but I didn't try to call different reverse mortgage companies, and they're telling me that that I'm supposed to have more than half of my mortgage paid for. My house has been appraised at 300,000. We only owe about 90,000 on the house. And I'm trying to get a reverse mortgage, but everybody's telling me different stories. I got about ten different reverse mortgage companies. And just like you was talking about the sheriff program, some of them trying to get me to do that, other one is trying to get me to do the HELOC or refinance. I would love to have a reverse mortgage because of my financial and my medical condition.

I'm 67 and my wife is about two years older than me. Don't want to mention her age, but anyway, we're thinking about the reverse mortgage. I called you in before, and I got the book from you, but I didn't try to call different reverse mortgage companies, and they're telling me that that I'm supposed to have more than half of my mortgage paid for. My house has been appraised at 300,000. We only owe about 90,000 on the house. And I'm trying to get a reverse mortgage, but everybody's telling me different stories. I got about ten different reverse mortgage companies. And just like you was talking about the sheriff program, some of them trying to get me to do that, other one is trying to get me to do the HELOC or refinance. I would love to have a reverse mortgage because of my financial and my medical condition.

Got it. Yes, sir. Well, you've come to the right place, Harlan, clear this up for us.

Got it. Yes, sir. Well, you've come to the right place, Harlan, clear this up for us.

Yeah. The the the big thing that you have to realize, Tim, is you always have different options. Um, the higher amount that they give you, you've already paid it down enough that you're going to qualify for a reverse mortgage. Um, and if you go to the shared equity route, you'll get more money. You could get as much as 200, 250,000, but then you don't own your house anymore. So definitely just stay away from that. Don't touch it. It's scary. And unless you plan on moving out soon, it's a very bad decision because it's like selling your house. You no longer have the control. If you do any other mortgage, like a HELOC or any of those things, you're just going to end up in a situation where you got a payment and you borrow 50,000 or 100,000, you got to pay back 150,000. So that would not make sense. So in a reverse mortgage situation, you have enough equity. You probably still even have a little bit left depending upon exactly what day the interest rate is figured. So it would certainly make sense to go the route of looking at the reverse option, because then you have the best of both worlds. You own your house, you can make payments if you wish, and if you don't want to, you never have to. For the rest of your life, with an absolute guarantee from the federal government that says you don't have to make the payment, no matter how old you get or what happens to the value of your house. So, um, certainly, Tim, in, um, it's the direction I went personally at 62. And so I guess really you're kind of five years past the time point. So it, uh, it it's certainly something that worked out great for myself and my family.

Yeah. The the the big thing that you have to realize, Tim, is you always have different options. Um, the higher amount that they give you, you've already paid it down enough that you're going to qualify for a reverse mortgage. Um, and if you go to the shared equity route, you'll get more money. You could get as much as 200, 250,000, but then you don't own your house anymore. So definitely just stay away from that. Don't touch it. It's scary. And unless you plan on moving out soon, it's a very bad decision because it's like selling your house. You no longer have the control. If you do any other mortgage, like a HELOC or any of those things, you're just going to end up in a situation where you got a payment and you borrow 50,000 or 100,000, you got to pay back 150,000. So that would not make sense. So in a reverse mortgage situation, you have enough equity. You probably still even have a little bit left depending upon exactly what day the interest rate is figured. So it would certainly make sense to go the route of looking at the reverse option, because then you have the best of both worlds. You own your house, you can make payments if you wish, and if you don't want to, you never have to. For the rest of your life, with an absolute guarantee from the federal government that says you don't have to make the payment, no matter how old you get or what happens to the value of your house. So, um, certainly, Tim, in, um, it's the direction I went personally at 62. And so I guess really you're kind of five years past the time point. So it, uh, it it's certainly something that worked out great for myself and my family.

Very good. Tim, listen, if you want to talk to Harlan and someone from his team to perhaps help you think through this and answer your questions, just reach out at movement.com/faith. That's movement.com/faith. And, uh, you know I think one of the keys here, Harlan, that he raised is this idea of, of a shared equity. And as you said, there's really never a reason to do that, but completely different from a home equity conversion mortgage, because with that, you're not selling your house at all. There's no recourse. You still own the home. Um, and, you know, when you sell it or pass away, whatever that balances gets, uh, you know, gets paid back, and then whatever's left can be, you know, given away or passed on to air. So a completely different product. Well, we're going to take a another break here. When we come back, uh, Harlan will be with us and we'll talk to Christine in Chicago, and then we'll head down to Sarasota and talk to J.R.. Plus, perhaps your question 800 525 7000. We'll be right back. Thanks for joining us today on Faith and Finance Live. All the lines are full, so we'll get to as many calls as we can today here while Harlan Akil is here. We're talking reverse mortgages. He's from Movement Mortgage. And you can learn more at movement.com. Slash faith to Chicago. Hi, Christine. Go ahead.

Very good. Tim, listen, if you want to talk to Harlan and someone from his team to perhaps help you think through this and answer your questions, just reach out at movement.com/faith. That's movement.com/faith. And, uh, you know I think one of the keys here, Harlan, that he raised is this idea of, of a shared equity. And as you said, there's really never a reason to do that, but completely different from a home equity conversion mortgage, because with that, you're not selling your house at all. There's no recourse. You still own the home. Um, and, you know, when you sell it or pass away, whatever that balances gets, uh, you know, gets paid back, and then whatever's left can be, you know, given away or passed on to air. So a completely different product. Well, we're going to take a another break here. When we come back, uh, Harlan will be with us and we'll talk to Christine in Chicago, and then we'll head down to Sarasota and talk to J.R.. Plus, perhaps your question 800 525 7000. We'll be right back. Thanks for joining us today on Faith and Finance Live. All the lines are full, so we'll get to as many calls as we can today here while Harlan Akil is here. We're talking reverse mortgages. He's from Movement Mortgage. And you can learn more at movement.com. Slash faith to Chicago. Hi, Christine. Go ahead.

Hi. How are you? Okay. Briefly, 71 years old. Was, um, had to retire earlier than I wanted to hurt myself and was not as strong as they used to be. I have a husband who is retired from the police department. We have he has a pension and I have Social Security that we're living on. Our house has been paid for for 20 years. It's going to go to both my daughters who are out of state. Is that something that you can do a reverse mortgage on with that situation that I just explained?

Hi. How are you? Okay. Briefly, 71 years old. Was, um, had to retire earlier than I wanted to hurt myself and was not as strong as they used to be. I have a husband who is retired from the police department. We have he has a pension and I have Social Security that we're living on. Our house has been paid for for 20 years. It's going to go to both my daughters who are out of state. Is that something that you can do a reverse mortgage on with that situation that I just explained?

Yeah. Good question Harlan.

Yeah. Good question Harlan.

Yeah. So I think the big thing that you have to realize is that when you set up a reverse mortgage, you don't have to use all of the money. You just use some of it. So you have to really take a look at what do I want to do for your daughter. So you have two daughters and you plan to leave that to them? Um, I have four sons and I still have a reverse mortgage. I plan on leaving whatever is left over to them. So you're past 62, so you certainly qualify. You have everything paid off. So 100% of the line of credit that we would make available to you would be usable. And if you set up a line of credit, it goes up by approximately the current rate of interest, which is about six between 6 and 7% right now. And you get more and more money available as the value of your house, of course, goes up at the same time. And being that both of your daughters are out of state, it's unlikely that they would live in your house. So you're really leaving behind is some money for them, not the house. Because if they're out of state, they probably don't plan on moving back and moving into your house. So I think the big thing is, is that one of the things you could look at is what I did and what a lot of our clients do is that's where really the early inheritance thing comes in that we talked about earlier is there's some things that you want to do or can do for them now that could be taken out of the house, which will reduce their inheritance ten, 20, 30 years from now, but certainly will be of more value now. When you set up the line of credit, it's not something you have to have a master plan of what you're using the money for. It's just that you've created some liquidity so that you have something if you want to plan a vacation, if you want to do a mission trip, if you want to help the grandkids, whatever that may be. It's a matter of making that money available to you, Christine, so that you have that now rather than waiting.

Yeah. So I think the big thing that you have to realize is that when you set up a reverse mortgage, you don't have to use all of the money. You just use some of it. So you have to really take a look at what do I want to do for your daughter. So you have two daughters and you plan to leave that to them? Um, I have four sons and I still have a reverse mortgage. I plan on leaving whatever is left over to them. So you're past 62, so you certainly qualify. You have everything paid off. So 100% of the line of credit that we would make available to you would be usable. And if you set up a line of credit, it goes up by approximately the current rate of interest, which is about six between 6 and 7% right now. And you get more and more money available as the value of your house, of course, goes up at the same time. And being that both of your daughters are out of state, it's unlikely that they would live in your house. So you're really leaving behind is some money for them, not the house. Because if they're out of state, they probably don't plan on moving back and moving into your house. So I think the big thing is, is that one of the things you could look at is what I did and what a lot of our clients do is that's where really the early inheritance thing comes in that we talked about earlier is there's some things that you want to do or can do for them now that could be taken out of the house, which will reduce their inheritance ten, 20, 30 years from now, but certainly will be of more value now. When you set up the line of credit, it's not something you have to have a master plan of what you're using the money for. It's just that you've created some liquidity so that you have something if you want to plan a vacation, if you want to do a mission trip, if you want to help the grandkids, whatever that may be. It's a matter of making that money available to you, Christine, so that you have that now rather than waiting.

Yeah. And I think the key here, Christine, is there's never a payment. So you're tapping into that home equity, but you never, you know, have that payment which can put a strain on the monthly cash flow. But questions on that. Does that make sense.

Yeah. And I think the key here, Christine, is there's never a payment. So you're tapping into that home equity, but you never, you know, have that payment which can put a strain on the monthly cash flow. But questions on that. Does that make sense.

Okay. So the whole reverse mortgage is I take a line of credit from my home and is there. Right. Is that what I'm hearing?

Okay. So the whole reverse mortgage is I take a line of credit from my home and is there. Right. Is that what I'm hearing?

Yeah. You could get a monthly income stream or a line of credit. And there's a fee up front to FHA, which is to cover the fact that you never, you know, have to guarantee this personally. And then you either get the line of credit which would grow by interest with interest, you know, based on the amount you pull out at any time. Or you can get an income stream for life, which also has interest on it. And then whatever that balance is, and you can pay it back if you want to. You just don't have to. Whatever that balance is at death or when you move would have to be paid. If they kept the house, they'd have to refinance it into their name and pay off the note, or they could sell it and just take the proceeds.

Yeah. You could get a monthly income stream or a line of credit. And there's a fee up front to FHA, which is to cover the fact that you never, you know, have to guarantee this personally. And then you either get the line of credit which would grow by interest with interest, you know, based on the amount you pull out at any time. Or you can get an income stream for life, which also has interest on it. And then whatever that balance is, and you can pay it back if you want to. You just don't have to. Whatever that balance is at death or when you move would have to be paid. If they kept the house, they'd have to refinance it into their name and pay off the note, or they could sell it and just take the proceeds.

Okay, so now does that take the value of your house down? So they could either keep the money and just let the value go down on the home because it's been used?

Okay, so now does that take the value of your house down? So they could either keep the money and just let the value go down on the home because it's been used?

Yeah. Harlan, I'll let you jump back in here.

Yeah. Harlan, I'll let you jump back in here.

Sure. So think about it this way. If you had a savings account and you had $400,000 in your savings account and you used 100, you still have 300,000 left. And if you have a $400,000 house and you use 100 by the time you pass, then the girls still get the house. It's just that they get 300,000 because you'd already used 100. Um, and so it doesn't change your ownership of the house or the gifting of the house. It just reduces that amount because you've used some of it while you're alive. Instead of giving it all to them after you're dead. Whatever you've used is simply subtract it.

Sure. So think about it this way. If you had a savings account and you had $400,000 in your savings account and you used 100, you still have 300,000 left. And if you have a $400,000 house and you use 100 by the time you pass, then the girls still get the house. It's just that they get 300,000 because you'd already used 100. Um, and so it doesn't change your ownership of the house or the gifting of the house. It just reduces that amount because you've used some of it while you're alive. Instead of giving it all to them after you're dead. Whatever you've used is simply subtract it.

Okay, so now one more thing. Is there? What's the interest on that line of credit? Or does it just depend on your in your what your house is worth? How do they do that?

Okay, so now one more thing. Is there? What's the interest on that line of credit? Or does it just depend on your in your what your house is worth? How do they do that?

Well, the technical answer is that it's 250 basis points over the ten year treasury, but nobody really knows that. So if you know what the 30 year loan is, it's very close to whatever the mortgage payments are and that six and a half to 7%. But remember what Rob said, that is not a payment that you make because you haven't had a payment for the last 20 years and you don't want one and you shouldn't have one. In my opinion, when you get into retirement. So what you're doing is if you pull out 100,000 and then every year there would be the interest amount would be tacked on to that of the amount that you used, but never. So the payment would always be zero.

Well, the technical answer is that it's 250 basis points over the ten year treasury, but nobody really knows that. So if you know what the 30 year loan is, it's very close to whatever the mortgage payments are and that six and a half to 7%. But remember what Rob said, that is not a payment that you make because you haven't had a payment for the last 20 years and you don't want one and you shouldn't have one. In my opinion, when you get into retirement. So what you're doing is if you pull out 100,000 and then every year there would be the interest amount would be tacked on to that of the amount that you used, but never. So the payment would always be zero.

Okay, perfect. Now. And you could take out as much as you want or whatever the house is worth. Or how does that go?

Okay, perfect. Now. And you could take out as much as you want or whatever the house is worth. Or how does that go?

It goes between 30 and 50%. You guys are young yet and you're early 70s. And so you'd be at about 40% of value. Um, and then that would be a growing line of credit that would continue to go up by about, uh, between 6 and 7% per year. So if we gave you a line of credit of, uh, 200,000 on a $500,000 house, for example, then that would that 200,000 would go up by about 15,000 a year in round numbers.

It goes between 30 and 50%. You guys are young yet and you're early 70s. And so you'd be at about 40% of value. Um, and then that would be a growing line of credit that would continue to go up by about, uh, between 6 and 7% per year. So if we gave you a line of credit of, uh, 200,000 on a $500,000 house, for example, then that would that 200,000 would go up by about 15,000 a year in round numbers.

Okay. And you're thinking, that's pretty good, huh? A good idea?

Okay. And you're thinking, that's pretty good, huh? A good idea?

Well, it's what I've done myself personally. Obviously it depends on everything else. We look at your whole picture, your tax situation, the other savings that you have. But I've done it. My parents did it before they passed. My wife's parents, my sister, uh, and a lot of folks in our church and friends and relatives. And so, um, yes, I think it simply enhances retirement. Think about it as being a steward. You're looking at your pension, you're looking at the other numbers. And especially if one person passes away first, it's a very good idea to have that as a stopgap for the just in case and health issues. And anything that comes up as you just realized you ended up retiring earlier than you thought. We don't we never can control some of those things.

Well, it's what I've done myself personally. Obviously it depends on everything else. We look at your whole picture, your tax situation, the other savings that you have. But I've done it. My parents did it before they passed. My wife's parents, my sister, uh, and a lot of folks in our church and friends and relatives. And so, um, yes, I think it simply enhances retirement. Think about it as being a steward. You're looking at your pension, you're looking at the other numbers. And especially if one person passes away first, it's a very good idea to have that as a stopgap for the just in case and health issues. And anything that comes up as you just realized you ended up retiring earlier than you thought. We don't we never can control some of those things.

Yeah. Christine, we appreciate your call today. Hopefully that helps. And, you know, I think the big idea is what Harlan said. Listen, this is not a one size fits all. It's not for everybody. Some people want to pay off their home and and stay that way. Others either haven't saved enough for retirement, don't have enough income, or maybe they're not able to maintain the lifestyle they want because, you know, the income is limited, or they would just like to do other things, like where we started today, helping children, taking more trips, being able to do things that they can enjoy and they're sitting on this massive asset, their home equity and this reverse mortgage, which, you know, doesn't have, you know, any kind of personal guarantee. Um, you know, in being non-recourse is a great option to consider alongside your IRAs and your pension and, you know, your 401 K, Social Security, whatever other retirement assets you have. And so I think, you know, the key here is that it's an often overlooked planning tool. And what Haaland is doing is just shedding some light on that. We appreciate your call today. All the best to you and your husband. And if you want to learn more, just go to movement.com. Slash Faith Haaland. What would you say? And we're going to take a break here and then we'll get to a few more calls. What would you say is the the biggest misconception about home equity conversion mortgages?

Yeah. Christine, we appreciate your call today. Hopefully that helps. And, you know, I think the big idea is what Harlan said. Listen, this is not a one size fits all. It's not for everybody. Some people want to pay off their home and and stay that way. Others either haven't saved enough for retirement, don't have enough income, or maybe they're not able to maintain the lifestyle they want because, you know, the income is limited, or they would just like to do other things, like where we started today, helping children, taking more trips, being able to do things that they can enjoy and they're sitting on this massive asset, their home equity and this reverse mortgage, which, you know, doesn't have, you know, any kind of personal guarantee. Um, you know, in being non-recourse is a great option to consider alongside your IRAs and your pension and, you know, your 401 K, Social Security, whatever other retirement assets you have. And so I think, you know, the key here is that it's an often overlooked planning tool. And what Haaland is doing is just shedding some light on that. We appreciate your call today. All the best to you and your husband. And if you want to learn more, just go to movement.com. Slash Faith Haaland. What would you say? And we're going to take a break here and then we'll get to a few more calls. What would you say is the the biggest misconception about home equity conversion mortgages?

Well, the biggest misconception is that you lose the value of your house. You lose the control. You don't have a house anymore. And now the bank owns it. I've heard that hundreds of times, and it's just not true. But when it gets repeated often enough, people just believe it. And so if they can just realize you still own your home, it's no different than a savings account. It's worth 400,000. You use 100. You still have 300 left.

Well, the biggest misconception is that you lose the value of your house. You lose the control. You don't have a house anymore. And now the bank owns it. I've heard that hundreds of times, and it's just not true. But when it gets repeated often enough, people just believe it. And so if they can just realize you still own your home, it's no different than a savings account. It's worth 400,000. You use 100. You still have 300 left.

Yeah.

Yeah.

Very good. That makes it really simple. All right folks, so we're going to take our final break of the broadcast today. When we come back we'll get to as many questions as we can. Harlan Akil is here today. He's an author. He's actually written the book, I think, one of the best out there on this topic of home equity conversion mortgages. And he'll be back to tackle reverse mortgages based on your questions right after this. Stay with us. Great to have you with us today on faith and finance here on Moody Radio. We're taking your calls and questions 800 525 7000. Right back to the phone. Sarasota, Florida is where we're headed next. J.R. go ahead, sir.

Very good. That makes it really simple. All right folks, so we're going to take our final break of the broadcast today. When we come back we'll get to as many questions as we can. Harlan Akil is here today. He's an author. He's actually written the book, I think, one of the best out there on this topic of home equity conversion mortgages. And he'll be back to tackle reverse mortgages based on your questions right after this. Stay with us. Great to have you with us today on faith and finance here on Moody Radio. We're taking your calls and questions 800 525 7000. Right back to the phone. Sarasota, Florida is where we're headed next. J.R. go ahead, sir.

Hello. Thank you for taking my call, gentlemen. Uh.

Hello. Thank you for taking my call, gentlemen. Uh.

Yes, sir.

Yes, sir.

I'm a 70. I'm a 77 year old retiree from Verizon, and I'm on my second reverse mortgage. The first one I took out, I took all the money I could get out of it, which was around 100 K, and then the second one, about five years later, it I only could get ten K out of it. Now I'm currently at the present second mortgage. Uh, I had went through, uh, like everybody else when the percentage rate was at zero. You used to get calls every day for refinancing. My reverse mortgage. And when they would crunch the numbers, it never seemed to come up. Worth it to them, I guess. But my question here is, uh, who should I go to as far as, uh, taking out a gun to get some some of my equity out. I figure I've got about 100 k equity still left in the property.

I'm a 70. I'm a 77 year old retiree from Verizon, and I'm on my second reverse mortgage. The first one I took out, I took all the money I could get out of it, which was around 100 K, and then the second one, about five years later, it I only could get ten K out of it. Now I'm currently at the present second mortgage. Uh, I had went through, uh, like everybody else when the percentage rate was at zero. You used to get calls every day for refinancing. My reverse mortgage. And when they would crunch the numbers, it never seemed to come up. Worth it to them, I guess. But my question here is, uh, who should I go to as far as, uh, taking out a gun to get some some of my equity out. I figure I've got about 100 k equity still left in the property.

Mm. Yeah. Harlan. Any thoughts?

Mm. Yeah. Harlan. Any thoughts?

Yeah. I think the the big thing, without seeing your most recent statement and knowing where you're at. And, of course, the the value of the house and the projected value. Um, I happen to have a second home, which was one of the things that I did when we did the reverse mortgage. So our children could come down and visit us from the cold in Minnesota. And so I'm just up the up the bay from you in Clearwater Beach. And, um, house prices have not increased the last year like they have been. So, uh, in some areas, some areas they're still fine. Uh, but because of the hurricane and stuff, it scared a lot of people. So, um, you may have the best situation locked in, and you may not I if you go to Movement.com, I can certainly look at the statement and give you an honest assessment as to whether or not you should stay where you're at, or if there's something more that you can do.

Yeah. I think the the big thing, without seeing your most recent statement and knowing where you're at. And, of course, the the value of the house and the projected value. Um, I happen to have a second home, which was one of the things that I did when we did the reverse mortgage. So our children could come down and visit us from the cold in Minnesota. And so I'm just up the up the bay from you in Clearwater Beach. And, um, house prices have not increased the last year like they have been. So, uh, in some areas, some areas they're still fine. Uh, but because of the hurricane and stuff, it scared a lot of people. So, um, you may have the best situation locked in, and you may not I if you go to Movement.com, I can certainly look at the statement and give you an honest assessment as to whether or not you should stay where you're at, or if there's something more that you can do.

Very good J.R. movement.com/faith will be the place to go. Thanks for your call. Uh, Bob is in Indiana. Bob. Go ahead. Sir.

Very good J.R. movement.com/faith will be the place to go. Thanks for your call. Uh, Bob is in Indiana. Bob. Go ahead. Sir.

Uh, yes. Thank you for accepting my call today. Uh, I am, uh, 78 years old, and I retired from General Motors since 99, and my wife is 79, and she still works at dialysis. And, uh, she's thinking about retiring next year, and she'll only have Social Security, and I'll have Social Security and a little, uh, what's left over for General Motors. And we were we are in a, uh, a home now, I don't know what the value is. Probably somewhere between, uh, 150 and 200,000. And we have no mortgage on it. And I was just wondering if we could qualify for some kind of, uh, benefit from this mortgage reverse program. I hear talking about.

Uh, yes. Thank you for accepting my call today. Uh, I am, uh, 78 years old, and I retired from General Motors since 99, and my wife is 79, and she still works at dialysis. And, uh, she's thinking about retiring next year, and she'll only have Social Security, and I'll have Social Security and a little, uh, what's left over for General Motors. And we were we are in a, uh, a home now, I don't know what the value is. Probably somewhere between, uh, 150 and 200,000. And we have no mortgage on it. And I was just wondering if we could qualify for some kind of, uh, benefit from this mortgage reverse program. I hear talking about.

Yeah. That's helpful. Bob. Harlan.

Yeah. That's helpful. Bob. Harlan.

Yeah. Um, while your wife retiring at 79, she certainly put in overtime in more ways than one. Um, you know, it's it really comes down to stewardship, Bob. Uh, if you had a savings account, you'd look at tapping into that. Uh, you have 150 to $200,000 savings account. And while you would not intend to sell the house or use all of it, uh, you can use some of it. And that's all that a reverse mortgage is going to do. And so we take a look at what our assets are, whether we have some money in an IRA or whether we have some money in a savings account. There's a lot of money sitting in your living room, and if you use some of it to be able to allow your wife to retire and not worry about the money, and not be surprised when you have to replace a hot water heater or something like that. It would certainly be wise to set up a at least a line of credit to be able to pull from as you need it, and you don't know if you're going to need it. But if you need an extra $300 here or $500 there, get it set up so that it's in place before something happens. So many people make the mistake when they're they wait till something goes bad or they're broke, or things just aren't going well at all. And then they try to get a reverse mortgage, and sometimes they can't qualify because they're late in their taxes and other things have went bad. So just borrow the money when you don't need it. Get that line of credit in place. You don't have to use it. And then as she retires and you see what your, uh, finances are looking to be, there's some money sitting in your living room that, so to speak, that's available for you. It certainly would seem to be a prudent thing to make sure that you have something available for those surprises, because you've went a long time almost to your 80s without it. So it certainly makes sense to kind of grab on to something that is a lifeline.

Yeah. Um, while your wife retiring at 79, she certainly put in overtime in more ways than one. Um, you know, it's it really comes down to stewardship, Bob. Uh, if you had a savings account, you'd look at tapping into that. Uh, you have 150 to $200,000 savings account. And while you would not intend to sell the house or use all of it, uh, you can use some of it. And that's all that a reverse mortgage is going to do. And so we take a look at what our assets are, whether we have some money in an IRA or whether we have some money in a savings account. There's a lot of money sitting in your living room, and if you use some of it to be able to allow your wife to retire and not worry about the money, and not be surprised when you have to replace a hot water heater or something like that. It would certainly be wise to set up a at least a line of credit to be able to pull from as you need it, and you don't know if you're going to need it. But if you need an extra $300 here or $500 there, get it set up so that it's in place before something happens. So many people make the mistake when they're they wait till something goes bad or they're broke, or things just aren't going well at all. And then they try to get a reverse mortgage, and sometimes they can't qualify because they're late in their taxes and other things have went bad. So just borrow the money when you don't need it. Get that line of credit in place. You don't have to use it. And then as she retires and you see what your, uh, finances are looking to be, there's some money sitting in your living room that, so to speak, that's available for you. It certainly would seem to be a prudent thing to make sure that you have something available for those surprises, because you've went a long time almost to your 80s without it. So it certainly makes sense to kind of grab on to something that is a lifeline.

Bob, thanks for your call. I hope that's helpful. Down to South Florida. Hi, Maria. Go ahead.

Bob, thanks for your call. I hope that's helpful. Down to South Florida. Hi, Maria. Go ahead.

Hi. How are you? Thank you for taking my call. Sure. Yes. Um, I am retiring, like, to one step, April 2nd. So. Okay. Wow. Yes. Yes. So I'm full age, so it's going to be 67, and I'm on my house. It's only my name and divorce. And I think I heard one day you guys talking about it, but unfortunately I just heard the last minute of it. I would like to maybe do the, you know, the reverse mortgage to invest because my retirement is very small.

Hi. How are you? Thank you for taking my call. Sure. Yes. Um, I am retiring, like, to one step, April 2nd. So. Okay. Wow. Yes. Yes. So I'm full age, so it's going to be 67, and I'm on my house. It's only my name and divorce. And I think I heard one day you guys talking about it, but unfortunately I just heard the last minute of it. I would like to maybe do the, you know, the reverse mortgage to invest because my retirement is very small.

Mhm. Yeah. You know, I'd love your thoughts on that, Harlan. Uh, you know, in terms of pulling the money out for the purpose of investing.

Mhm. Yeah. You know, I'd love your thoughts on that, Harlan. Uh, you know, in terms of pulling the money out for the purpose of investing.

Yeah, we never recommend that. It's, uh, you've already invested money into the house, so we don't, uh, you're kind of betting on the future. And from a Christian perspective, we we don't recommend anybody pull out $100,000 and put it in Tesla, even if that stock is down and it might go up. That's not what this is about. And some people do that, and some people are encouraged to do that by reverse mortgage lenders. And it's quite frankly dangerous. However you have if you have a too small of investment and you're retiring April 2nd, the reason that you're looking to say, I'm going to take this money out and invest it is because you're looking for some income. We will give you income out of your house and we can set up if you need. Let's say you need $2,000 a month, to pay all your bills, and you only got 1500 coming in from Social Security or something like that. Well, then we'll round out and give you the other $500 a month and still have some credit line money left. So in a sense, it's like getting income from an investment. We just allow you to take that investment, called your house, and give you income from it, which people never think about because they're used to putting money into the house. And now what we're doing is taking money out of the house and giving it back to you. Just like you put money into an investment, you take it out after you retire, you put money into your house. Let's take it back out when you retire. And congratulations on your retirement coming up in just a few days.

Yeah, we never recommend that. It's, uh, you've already invested money into the house, so we don't, uh, you're kind of betting on the future. And from a Christian perspective, we we don't recommend anybody pull out $100,000 and put it in Tesla, even if that stock is down and it might go up. That's not what this is about. And some people do that, and some people are encouraged to do that by reverse mortgage lenders. And it's quite frankly dangerous. However you have if you have a too small of investment and you're retiring April 2nd, the reason that you're looking to say, I'm going to take this money out and invest it is because you're looking for some income. We will give you income out of your house and we can set up if you need. Let's say you need $2,000 a month, to pay all your bills, and you only got 1500 coming in from Social Security or something like that. Well, then we'll round out and give you the other $500 a month and still have some credit line money left. So in a sense, it's like getting income from an investment. We just allow you to take that investment, called your house, and give you income from it, which people never think about because they're used to putting money into the house. And now what we're doing is taking money out of the house and giving it back to you. Just like you put money into an investment, you take it out after you retire, you put money into your house. Let's take it back out when you retire. And congratulations on your retirement coming up in just a few days.

Yeah, that's really great. Let's run those numbers really quick, Maria. Just kind of in round numbers. So you said your home's worth about.

Yeah, that's really great. Let's run those numbers really quick, Maria. Just kind of in round numbers. So you said your home's worth about.

I would like to buy another property and that would be an extra income. That's what I was thinking. No investing in stock market? No, it's not my idea. I was thinking maybe two. Yeah. No, no, I'm very.

I would like to buy another property and that would be an extra income. That's what I was thinking. No investing in stock market? No, it's not my idea. I was thinking maybe two. Yeah. No, no, I'm very.

I would I would.

I would I would.

Absolutely concur on that with when it comes to stock market investing. What about that idea of buying a second home, Harlan?

Absolutely concur on that with when it comes to stock market investing. What about that idea of buying a second home, Harlan?

Well, there's no question that a lot of our clients, I did that myself and a lot of our clients buy. We had a pastor that retired and he bought a four unit, lived in it and lived in one of them and rented out the other three and had an excellent retirement, even though there wasn't a lot of money sitting in his investments. Uh, I'm sorry I misunderstood that. Investing in some other real estate or income based real estate that is safe. A lot of our clients do that, and it's not something that we. Carte blanche, say, yes, that's the best thing you can do. But we work through that and there's there's some wisdom there because it's something. Well, it's called there's a reason why it's called real estate.

Well, there's no question that a lot of our clients, I did that myself and a lot of our clients buy. We had a pastor that retired and he bought a four unit, lived in it and lived in one of them and rented out the other three and had an excellent retirement, even though there wasn't a lot of money sitting in his investments. Uh, I'm sorry I misunderstood that. Investing in some other real estate or income based real estate that is safe. A lot of our clients do that, and it's not something that we. Carte blanche, say, yes, that's the best thing you can do. But we work through that and there's there's some wisdom there because it's something. Well, it's called there's a reason why it's called real estate.

Yeah, yeah, yeah. Very good. Maria I hope that helps. Movement.com faith is where you can learn more. Let's stay in Florida. Renata, you have a little different situation. Share that with us.

Yeah, yeah, yeah. Very good. Maria I hope that helps. Movement.com faith is where you can learn more. Let's stay in Florida. Renata, you have a little different situation. Share that with us.

Yes. So my mom passed away in December, and so we're dealing with her reverse that she had done many years ago. Um, she was 87. At death. She took her real her first reverse in seven. She was about 70, maybe even 68. And then she also did a refinance, took more equity out. Her house is worth about 280. Um, and the payoff was only like 160. But then they added almost it seems like 60,000 to 90,000 on top that they're saying we have to pay off. And we're just very confused about that. And, um, also that they're only giving us three months to sell her home, not the full year.

Yes. So my mom passed away in December, and so we're dealing with her reverse that she had done many years ago. Um, she was 87. At death. She took her real her first reverse in seven. She was about 70, maybe even 68. And then she also did a refinance, took more equity out. Her house is worth about 280. Um, and the payoff was only like 160. But then they added almost it seems like 60,000 to 90,000 on top that they're saying we have to pay off. And we're just very confused about that. And, um, also that they're only giving us three months to sell her home, not the full year.

Interesting. Harlan.

Interesting. Harlan.

Yes. So as soon as possible, go to Movement.com. Faith. Because there are so many misunderstandings. And I just dealt with somebody this past week that they just got some misinformation. In fact, the company wouldn't even talk to them because she was a she was not the executor, she was a power of attorney, and that ended at death. So sometimes there can be a lot of confusion on this for anybody that is dealing with this with their parents. Let us walk through what that is and what that situation will be. Because first of all, you do have a year that's mandated by the federal government. If it is an FHA loan, which it sounds like it is, but you only have three months to make the initial decision, and then there's another three months extension and another three months and another three months. So you get extensions as you're going through, just to make sure that you're on the path to get it taken care of. But that is something that is that you are definitely guaranteed that time. Now the interest will continue to accrue because the money is out there, but there is no payment that's required or anything like that. I'd love to help you to make sure that that's not going to be a problem for your family. Thank you.