09/21/2026
Reverse Mortgages can be a great tool for seniors but only when it is the right fit. What is the right fit? That is case by case scenario that requires a financial due diligence performed by both me and the client(s). In many cases, there is a cheaper option, and the money needed can be more efficiently obtained, more so if that money is needed immediately.
But there are also many cases where a reverse is warranted.
- Your monthly mortgage debt is taking up too much of your monthly income.
- You want to supplement your income with the proceeds from the reverse mortgage.
- You don't want to leave your current home and age in place but need a little relief from the expenses and upkeep.
- You anticipate large expenses coming like medical and/or home repairs.
- You are awake at night worrying that you are going to run out of retirement income and want peace of mind.
The point of this email is that a reverse mortgage should not be applied unless you are working with someone who between all parties has determined that this is the best course of action to take and that all other possibilities make less sense. I spend a lot of time discussing each of my client's unique financial situation, what their current needs are, and what they feel their future needs will be before I agree to close one for them. I have worked with one premise my entire career; what would I do for myself if this was my financial situation. Adding to that, the last call I ever want to take is from a client or their heirs asking why did you put me or my family in this loan.
Some myths that need to be dispelled on reverses:
-The government owns your house - It is no different than any other mortgage you would take in that respect.
- Your heirs can owe more on the house then it will sell for. Nope. Not on reverse that Global will originate.
- The distributions you take from the reverse can raise your income taxes. Nope. It's a tax-free distribution.
Disclaimer - There are some reverse products possibly out there that do not adhere to these principals, but you will not obtain one from me or anyone else at GMN, Inc.
