1 00:00:08,880 --> 00:00:13,119 S1: Reverse mortgages often trigger strong reactions in Christian circles, but 2 00:00:13,119 --> 00:00:18,240 S1: are those reactions rooted in biblical wisdom or in outdated information? Hi, 3 00:00:18,280 --> 00:00:21,040 S1: I'm Rob West. When it comes to debt and home equity, 4 00:00:21,040 --> 00:00:24,880 S1: emotions can run high, especially among believers who genuinely want 5 00:00:24,880 --> 00:00:28,600 S1: to honor God with their finances. But wise financial decisions 6 00:00:28,600 --> 00:00:32,640 S1: require understanding the facts. Today, Harlan Accola joins us to 7 00:00:32,680 --> 00:00:36,120 S1: shed light on this often misunderstood topic. And then we'll 8 00:00:36,120 --> 00:00:40,640 S1: take your calls at 800 525 7000. This is faith 9 00:00:40,640 --> 00:00:50,159 S1: in finance, biblical wisdom for your financial decisions. Well, we 10 00:00:50,159 --> 00:00:52,879 S1: always look forward to having Harlan Accola with us today. 11 00:00:53,240 --> 00:00:56,480 S1: He is leading the reverse mortgage team at Movement Mortgage, 12 00:00:56,480 --> 00:01:00,580 S1: a valued underwriter of this program. Harlan, always delighted to 13 00:01:00,580 --> 00:01:01,980 S1: have you here. Thanks for stopping by. 14 00:01:02,300 --> 00:01:04,100 S2: Hello. Thanks for having. It's always good to be with you. 15 00:01:04,100 --> 00:01:05,300 S2: And so we can serve others. 16 00:01:05,700 --> 00:01:07,899 S1: Yeah, I know that's your your goal. And we're going 17 00:01:07,940 --> 00:01:10,220 S1: to try to do that today, by the way. Harlan 18 00:01:10,220 --> 00:01:13,220 S1: will stick around for the broadcast so we can take 19 00:01:13,220 --> 00:01:16,220 S1: your calls on any financial topic, but we will certainly 20 00:01:16,220 --> 00:01:20,420 S1: prioritize those on reverse mortgages. If you're wondering if this 21 00:01:20,420 --> 00:01:23,539 S1: is right for you, maybe you've misunderstood this product in 22 00:01:23,540 --> 00:01:26,420 S1: the past or allowed it to, in your mind, get 23 00:01:26,420 --> 00:01:29,060 S1: a bad rap and you'd like to clear some things up. 24 00:01:29,300 --> 00:01:33,060 S1: You're welcome to call today 800 525 7000. He will 25 00:01:33,060 --> 00:01:36,740 S1: be here taking your calls. Any calls on topic related 26 00:01:36,740 --> 00:01:40,140 S1: to reverse mortgages? We'll send you as our gift. His book, 27 00:01:40,620 --> 00:01:43,700 S1: it's called Home Equity and Reverse Mortgages. And we'll put 28 00:01:43,700 --> 00:01:45,140 S1: it in the mail to you. But if you have 29 00:01:45,140 --> 00:01:47,820 S1: a question on any financial topic, we'll take those as well. 30 00:01:47,860 --> 00:01:52,780 S1: 800 525 7000. Uh, Harlan, let's dive in. When many 31 00:01:52,780 --> 00:01:56,060 S1: people hear this term reverse mortgage, their first reaction is 32 00:01:56,060 --> 00:02:00,390 S1: no way. Why do those words carry so much emotional weight. 33 00:02:01,110 --> 00:02:03,630 S2: Well, some of its history, there were less than desirable 34 00:02:03,630 --> 00:02:06,870 S2: products and people that abused the product, just like any 35 00:02:06,870 --> 00:02:10,550 S2: good product. But today's reverse mortgage is federally regulated by 36 00:02:10,550 --> 00:02:13,390 S2: the Federal Housing Administration and has lots of built in 37 00:02:13,389 --> 00:02:15,830 S2: consumer protections. And the people that have a reverse mortgage 38 00:02:15,830 --> 00:02:19,950 S2: are one of the highest satisfaction rates, according to the J.D. 39 00:02:19,950 --> 00:02:22,669 S2: Power program. That rates a lot of these things. But 40 00:02:22,669 --> 00:02:26,389 S2: there's a tremendous amount of misinformation, especially in Christian circles. Uh, 41 00:02:26,710 --> 00:02:30,870 S2: Christian programs and friends and family and repeat things that 42 00:02:31,070 --> 00:02:33,030 S2: are simply wrong that they've just heard. You'll lose your 43 00:02:33,030 --> 00:02:37,630 S2: house hurts your kids too expensive. And there just is. 44 00:02:38,030 --> 00:02:41,790 S2: When things are repeated enough times, people just believe them. 45 00:02:41,790 --> 00:02:45,990 S2: But I always go back to Proverbs 1920, and it 46 00:02:46,590 --> 00:02:49,070 S2: reminds us to listen to advice and accept instruction that 47 00:02:49,070 --> 00:02:51,750 S2: you may gain wisdom in the future, simply a gentle 48 00:02:51,750 --> 00:02:54,630 S2: reminder that understanding should come before you make conclusions. 49 00:02:55,150 --> 00:02:59,410 S1: Yeah, that's well said. 800 525 7000. We'll begin taking 50 00:02:59,410 --> 00:03:02,209 S1: your questions in the next segment. Uh, Harlan, let's talk 51 00:03:02,210 --> 00:03:04,850 S1: about stewardship for a moment. If someone in their late 52 00:03:04,850 --> 00:03:09,450 S1: 60s or 70s has substantial home equity but is struggling 53 00:03:09,450 --> 00:03:12,850 S1: with monthly cash flow, maybe they're beginning to rely on 54 00:03:12,850 --> 00:03:16,530 S1: high interest credit cards. That's a situation that needs attention, 55 00:03:16,530 --> 00:03:17,130 S1: isn't it? 56 00:03:17,169 --> 00:03:19,250 S2: Well, it sure is. Just yesterday, I was talking with 57 00:03:19,250 --> 00:03:23,730 S2: someone that had listened to our program, and she's a 58 00:03:23,770 --> 00:03:30,170 S2: widow that has 15% interest on her roof loan that 59 00:03:30,169 --> 00:03:33,930 S2: she got for fixing a roof. And then just ongoing things. 60 00:03:33,930 --> 00:03:36,810 S2: She's got a mortgage payment that is only about 4%. 61 00:03:36,930 --> 00:03:40,290 S2: But then because she's making this big mortgage payment, she 62 00:03:40,290 --> 00:03:45,690 S2: has high interest credit cards and, uh, one is 25%. 63 00:03:46,010 --> 00:03:49,130 S2: We can eliminate all of that. And her payments become optional. 64 00:03:49,130 --> 00:03:51,290 S2: And if she wants to make payments, she can. But 65 00:03:51,290 --> 00:03:54,250 S2: the problem is cash flow. That's why those high interest 66 00:03:54,250 --> 00:03:56,250 S2: things come up. She's not being foolish with their money. 67 00:03:56,290 --> 00:03:59,180 S2: That getting a roof and paying for food and clothes 68 00:03:59,220 --> 00:04:00,900 S2: is kind of part of the equation. 69 00:04:01,820 --> 00:04:04,860 S1: Yeah, I think that's well said. Uh, what are you 70 00:04:04,900 --> 00:04:07,460 S1: able to do for somebody in that situation? And how 71 00:04:07,460 --> 00:04:10,860 S1: can a reverse mortgage specifically help someone who has not 72 00:04:10,860 --> 00:04:13,700 S1: saved enough? Maybe they're feeling the squeeze just to put 73 00:04:13,700 --> 00:04:16,340 S1: food on the table, or perhaps it's they can cover 74 00:04:16,339 --> 00:04:19,460 S1: their bills, but there's just, there's nothing there that's extra 75 00:04:19,460 --> 00:04:21,620 S1: that they can use to enjoy this fourth quarter. 76 00:04:21,980 --> 00:04:24,340 S2: Yes. What we can do for this particular client we've 77 00:04:24,339 --> 00:04:27,219 S2: done with a lot is completely wipe out all of 78 00:04:27,220 --> 00:04:30,940 S2: the payments, refinance all of them into one reverse mortgage, 79 00:04:30,940 --> 00:04:33,380 S2: which a lot of people are scared of debt consolidation. 80 00:04:33,660 --> 00:04:36,660 S2: But this allows her to have all of the debt 81 00:04:36,660 --> 00:04:40,820 S2: and a lower interest rate on everything with no required payment, 82 00:04:40,820 --> 00:04:43,060 S2: so that she never will run up credit cards again 83 00:04:43,060 --> 00:04:46,420 S2: because it changes the cash flow. And in addition, over 84 00:04:46,460 --> 00:04:50,300 S2: $50,000 left over in a line of credit for surprises 85 00:04:50,300 --> 00:04:52,220 S2: that come up in the future, whether it be health 86 00:04:52,260 --> 00:04:55,880 S2: related or whether it be house related or simply life happens. 87 00:04:56,560 --> 00:04:59,680 S2: We're covering not only the difference in cash flow, but 88 00:04:59,680 --> 00:05:03,080 S2: also some future money in case you need something, has 89 00:05:03,080 --> 00:05:06,880 S2: completely changed her outlook on her retirement, because she was 90 00:05:06,880 --> 00:05:09,840 S2: in such fear and worry about the next bill that 91 00:05:09,839 --> 00:05:11,719 S2: would come up that she couldn't pay. 92 00:05:12,600 --> 00:05:15,400 S1: Yeah. Well, Harlan, we're glad you're here today. We're going 93 00:05:15,400 --> 00:05:18,640 S1: to continue to answer questions. I've got a few more 94 00:05:18,640 --> 00:05:20,960 S1: of them. I know our listeners do as well. They've 95 00:05:20,960 --> 00:05:23,479 S1: been calling. So we're going to tackle those just around 96 00:05:23,480 --> 00:05:25,760 S1: the corner. This is Faith and Finance Live. We'll be 97 00:05:25,760 --> 00:05:26,360 S1: right back. 98 00:05:39,320 --> 00:05:42,719 S3: The opinions offered during this program represent the personal or 99 00:05:42,720 --> 00:05:47,560 S3: professional opinions of the participants given for informational purposes only. 100 00:05:47,800 --> 00:05:51,400 S3: Any information provided is not intended to replace advice from 101 00:05:51,400 --> 00:05:56,250 S3: a financial, medical, legal or other professional who understands your 102 00:05:56,250 --> 00:05:57,609 S3: specific situation. 103 00:06:03,210 --> 00:06:05,690 S1: What if I told you that your financial journey is 104 00:06:05,690 --> 00:06:08,130 S1: one of the key ways God shapes your spiritual journey? 105 00:06:08,130 --> 00:06:11,810 S1: I believe that at its core, money management is spiritual formation. 106 00:06:11,810 --> 00:06:16,050 S1: It's that daily, tangible expression of what we value, where 107 00:06:16,050 --> 00:06:19,050 S1: we place our trust, what we fear. We work that 108 00:06:19,050 --> 00:06:21,690 S1: out in part through our finances. And so that's why 109 00:06:21,690 --> 00:06:24,409 S1: we dedicate an hour each day to helping you live 110 00:06:24,450 --> 00:06:26,930 S1: as a wise and faithful steward. And that's going to 111 00:06:26,930 --> 00:06:30,370 S1: cover a host of topics as we deal with lifestyle issues, 112 00:06:30,370 --> 00:06:32,810 S1: your spending, as we deal with your giving, as we 113 00:06:32,810 --> 00:06:36,130 S1: deal with your investing and saving and yes, debt as well. 114 00:06:36,130 --> 00:06:39,330 S1: How do we responsibly care for the assets that we have? 115 00:06:39,330 --> 00:06:42,090 S1: What does it look like to understand how to to 116 00:06:42,130 --> 00:06:44,490 S1: use debt in ways that are appropriate and in other 117 00:06:44,490 --> 00:06:48,090 S1: ways where we're funding a consumptive lifestyle we want to 118 00:06:48,089 --> 00:06:50,650 S1: stay away from? Well, today we're talking about a particular 119 00:06:50,850 --> 00:06:54,510 S1: aspect of, of our balance sheet and that is our 120 00:06:54,510 --> 00:06:57,310 S1: home equity. And how, especially for those in the fourth 121 00:06:57,310 --> 00:07:01,070 S1: quarter of life, it can be used as a tool, 122 00:07:01,110 --> 00:07:04,310 S1: as a part of a well thought out financial plan. 123 00:07:04,310 --> 00:07:06,909 S1: You can pull from your IRA, you can get guaranteed 124 00:07:06,910 --> 00:07:11,030 S1: income from Social Security or retirement. You can pull from, uh, 125 00:07:11,030 --> 00:07:14,950 S1: a real estate investment and you might have perhaps a 126 00:07:14,950 --> 00:07:18,550 S1: lot of home equity and maybe you're struggling with fixed 127 00:07:18,550 --> 00:07:21,870 S1: income to just keep the bills paid, and yet you 128 00:07:21,870 --> 00:07:24,430 S1: want to stay in your home. Your kids don't necessarily 129 00:07:24,430 --> 00:07:27,070 S1: want the house after you pass away. And you could 130 00:07:27,070 --> 00:07:29,950 S1: leverage that home equity, maybe for a little breathing room 131 00:07:29,950 --> 00:07:32,870 S1: to keep the house repaired, perhaps to, to travel, do 132 00:07:32,870 --> 00:07:35,710 S1: some extra things, or maybe just to make ends meet. 133 00:07:35,870 --> 00:07:39,670 S1: So or perhaps even improve the home. So it's there 134 00:07:39,670 --> 00:07:42,590 S1: and can accommodate you as you age. That's where a 135 00:07:42,590 --> 00:07:45,270 S1: reverse mortgage can come in. And, and Harlan, what is 136 00:07:45,270 --> 00:07:50,150 S1: the typical size and payout of a reverse mortgage that 137 00:07:50,150 --> 00:07:53,530 S1: you're seeing today? What is it home equity line of 138 00:07:53,530 --> 00:07:55,090 S1: credit or a monthly check? 139 00:07:55,370 --> 00:07:59,730 S2: Almost everyone takes a line of credit. Um, obviously some 140 00:07:59,730 --> 00:08:02,330 S2: people take a lump sum to pay off existing debt 141 00:08:02,330 --> 00:08:05,450 S2: or an existing loan that they already have. That's one 142 00:08:05,450 --> 00:08:07,010 S2: of the most common things that we do. But if 143 00:08:07,010 --> 00:08:09,330 S2: someone has a house paid off, then they set up 144 00:08:09,330 --> 00:08:11,570 S2: a line of credit where they can pull money as 145 00:08:11,570 --> 00:08:13,970 S2: they use it, which everybody is familiar with the line 146 00:08:14,010 --> 00:08:16,850 S2: of credit. But this is different because it is a 147 00:08:16,890 --> 00:08:19,690 S2: guaranteed line of credit that can't be taken away, that 148 00:08:19,690 --> 00:08:23,730 S2: always grows and does not require repayment. Most of the time, 149 00:08:23,730 --> 00:08:27,130 S2: regular lines of credit are dangerous because you're setting up 150 00:08:27,130 --> 00:08:29,570 S2: a future obligation that you may not be able to 151 00:08:29,610 --> 00:08:32,410 S2: deal with as you age or as you lose a spouse. 152 00:08:32,690 --> 00:08:34,770 S2: So this is simply a line of credit that allows 153 00:08:34,770 --> 00:08:37,610 S2: you to pull money out as you need it when 154 00:08:37,610 --> 00:08:40,970 S2: you need it, and only interest is accruing on the 155 00:08:40,970 --> 00:08:43,450 S2: amount that you actually use. That's why it's such a 156 00:08:43,530 --> 00:08:46,290 S2: more flexible term than just getting a check every month, 157 00:08:46,290 --> 00:08:48,810 S2: or taking out a lump sum that may not be 158 00:08:48,809 --> 00:08:49,689 S2: needed at all. 159 00:08:49,730 --> 00:08:52,579 S1: Harland leads the reverse team at Movement Mortgage. You can 160 00:08:52,580 --> 00:08:56,380 S1: find out more at faith fi.com slash. Uh, Harlan, one 161 00:08:56,380 --> 00:08:58,140 S1: of the things that I learned as you and I 162 00:08:58,140 --> 00:09:00,740 S1: started getting into this and you were educating me is 163 00:09:00,860 --> 00:09:03,140 S1: I didn't realize with a line of credit tied to 164 00:09:03,140 --> 00:09:07,339 S1: a home equity conversion mortgage, as the home appreciates, which 165 00:09:07,380 --> 00:09:11,020 S1: most do and most have significantly over the last few years, 166 00:09:11,020 --> 00:09:12,780 S1: that line of credit can go up, right? 167 00:09:12,820 --> 00:09:15,820 S2: Well, yes. And the good thing is, is that it 168 00:09:15,820 --> 00:09:18,620 S2: always goes up even if the House doesn't appreciate, we 169 00:09:18,620 --> 00:09:21,620 S2: expect it to appreciate. But because of the federal guarantee, 170 00:09:22,020 --> 00:09:24,700 S2: if the House value goes down like it did in 2008, 171 00:09:24,740 --> 00:09:27,580 S2: lines of credit continued to increase because that's part of 172 00:09:27,580 --> 00:09:31,060 S2: the contract that you have right from the beginning with 173 00:09:31,059 --> 00:09:33,300 S2: a line of credit. So I actually had a lady 174 00:09:33,300 --> 00:09:35,339 S2: in her 90s that had a line of credit that 175 00:09:35,340 --> 00:09:37,059 S2: was larger than the value of her house. She actually 176 00:09:37,059 --> 00:09:38,660 S2: got more out of the house than it was worth 177 00:09:38,660 --> 00:09:42,939 S2: by the time she passed. So it is, uh, usually 178 00:09:42,940 --> 00:09:45,819 S2: lines of credit contract and get smaller, a regular line 179 00:09:45,860 --> 00:09:49,540 S2: of credit because people's income goes down or they lose 180 00:09:49,540 --> 00:09:52,640 S2: a spouse, Something happens to their credit, their credit isn't 181 00:09:52,640 --> 00:09:55,360 S2: as good as it was when they were working. And 182 00:09:55,360 --> 00:09:59,400 S2: so it's that safety of knowing that it's there no 183 00:09:59,400 --> 00:10:03,480 S2: matter what is a huge, important thing to anyone that's 184 00:10:03,480 --> 00:10:05,959 S2: in a time of life that is kind of uncertain. 185 00:10:06,559 --> 00:10:09,120 S1: Every caller today on this topic gets a copy of 186 00:10:09,120 --> 00:10:11,520 S1: Harlan's book as our gift. If you have questions on 187 00:10:11,520 --> 00:10:16,200 S1: reverse mortgages, call right now 800 525 7000. We'll also 188 00:10:16,200 --> 00:10:19,600 S1: sneak in some other questions on any financial topic 800 189 00:10:19,640 --> 00:10:23,520 S1: 525 7000. Let's head to Indiana. Brian, how can we help? 190 00:10:24,520 --> 00:10:28,160 S4: Hi. Thanks for taking my call. I've got a question about, um, 191 00:10:28,480 --> 00:10:30,600 S4: my wife and I have been looking into taking a 192 00:10:30,600 --> 00:10:34,040 S4: home equity loan, um, against our mortgage. We the home 193 00:10:34,080 --> 00:10:37,480 S4: is valued at around 500,000. We owe about 100,000. I'm 194 00:10:37,520 --> 00:10:40,959 S4: 53 years old. Um, you know, ten years, a little 195 00:10:41,000 --> 00:10:44,480 S4: bit more than, uh, closer to retirement. All of our 196 00:10:44,480 --> 00:10:48,120 S4: children are growing up and we've got this big home 197 00:10:48,120 --> 00:10:50,570 S4: and we've got some repairs that we'd like to do, 198 00:10:50,809 --> 00:10:54,530 S4: some kind of big ones. Um, but I ran across 199 00:10:54,530 --> 00:10:57,530 S4: this thing called an high home equity investment. Are you 200 00:10:57,530 --> 00:10:58,290 S4: familiar with that? 201 00:10:58,330 --> 00:10:58,530 S1: Yeah. 202 00:11:00,130 --> 00:11:03,890 S2: Yeah, it'd be very, very careful with that. Um, most 203 00:11:03,929 --> 00:11:07,730 S2: he's and he's ah. Um, and I don't know about 204 00:11:07,730 --> 00:11:09,610 S2: all of them, but I know about most of them. 205 00:11:09,970 --> 00:11:14,810 S2: Um and they are not regulated by the government. They're 206 00:11:14,809 --> 00:11:18,170 S2: not typically they're not really a HELOC. In fact, they're 207 00:11:18,170 --> 00:11:20,330 S2: not a HELOC. They're an AGI or an he, a 208 00:11:20,370 --> 00:11:26,130 S2: home equity, um, agreement or home equity investment. They own 209 00:11:26,170 --> 00:11:28,530 S2: a portion of your equity. So you don't know how 210 00:11:28,530 --> 00:11:31,730 S2: much you're going to pay back if your home appreciates, uh, 211 00:11:31,730 --> 00:11:34,410 S2: more than expected or even about what's expected, you could 212 00:11:34,410 --> 00:11:38,089 S2: end up paying 25 to 30. We've seen them as 213 00:11:38,090 --> 00:11:41,450 S2: high as 40% annualized interest when they're paid back. In fact, 214 00:11:41,450 --> 00:11:43,490 S2: we've done a lot of reverse mortgages to take people 215 00:11:43,490 --> 00:11:47,929 S2: out of them. And there's a lot of lawsuits out there, uh, 216 00:11:47,950 --> 00:11:51,790 S2: Against him right now because we are not taking any 217 00:11:51,790 --> 00:11:55,070 S2: ownership of your equity or your house. He is and 218 00:11:55,110 --> 00:11:58,990 S2: he's do and they put you in a greater danger. 219 00:11:59,030 --> 00:12:02,949 S2: Almost all the time. Nothing is always bad or always good, 220 00:12:03,110 --> 00:12:05,910 S2: but I'd be happy to review any of them and 221 00:12:05,910 --> 00:12:09,110 S2: show you what actually happens in the end. If you 222 00:12:09,110 --> 00:12:11,589 S2: took out a home equity line, you know exactly what 223 00:12:11,590 --> 00:12:13,429 S2: you're going to pay. Even though the interest rate is 224 00:12:13,429 --> 00:12:16,470 S2: probably higher than that you have now. And we can 225 00:12:16,470 --> 00:12:19,110 S2: time that out that when you are 62, that will 226 00:12:19,110 --> 00:12:21,429 S2: wipe it out completely with a line of credit that 227 00:12:21,429 --> 00:12:24,870 S2: has no obligation, which for you is about ten years away, 228 00:12:24,910 --> 00:12:27,750 S2: nine years away. Um, but we're planning for a lot 229 00:12:27,750 --> 00:12:32,630 S2: of people in their 50s. Exactly. In that situation. Brian. So, um, 230 00:12:33,309 --> 00:12:37,110 S2: look before you leap, uh, it is not something that is, uh, 231 00:12:37,110 --> 00:12:40,230 S2: as good as what it seems in most cases. So 232 00:12:40,230 --> 00:12:42,030 S2: thanks for calling on that because we need to have 233 00:12:42,030 --> 00:12:46,069 S2: more light on those issues. Movement mortgage will not participate 234 00:12:46,070 --> 00:12:46,550 S2: in them. 235 00:12:47,090 --> 00:12:48,690 S1: Very good. Brian, is that helpful? 236 00:12:48,850 --> 00:12:51,130 S4: That is. And that's why I called, because, you know, 237 00:12:51,170 --> 00:12:55,090 S4: it looks like it's a really good, good program with, uh, 238 00:12:55,130 --> 00:12:58,730 S4: you know, you sell 10% of your, your mortgage, I guess, basically, 239 00:12:58,770 --> 00:13:00,970 S4: or the value of your home. And then in ten years, 240 00:13:01,170 --> 00:13:03,809 S4: whatever that 10% went up to is what you pay 241 00:13:03,809 --> 00:13:06,530 S4: back is what it sounded like. But it was kind 242 00:13:06,530 --> 00:13:09,490 S4: of vague and I wanted clarification. Yes, you helped me 243 00:13:09,490 --> 00:13:10,410 S4: very much. Thank you. 244 00:13:10,809 --> 00:13:13,610 S1: Excellent. Thank you, Brian, for your call today. Let's head 245 00:13:13,610 --> 00:13:15,770 S1: to Minnesota. Catherine, go right ahead. 246 00:13:17,610 --> 00:13:20,370 S5: Hi. Um, I have never purchased a house. I'm almost 247 00:13:20,370 --> 00:13:24,130 S5: 60 and I'm contemplating it. But I'm wondering, and this 248 00:13:24,130 --> 00:13:26,090 S5: might be a moot point, but is there anything that 249 00:13:26,090 --> 00:13:29,090 S5: I can do in preparation so that I don't need 250 00:13:29,090 --> 00:13:31,970 S5: a reverse mortgage? Although I have heard your program before 251 00:13:32,010 --> 00:13:34,929 S5: and realize that they're not necessarily bad. Is that a 252 00:13:35,250 --> 00:13:36,290 S5: stupid question? 253 00:13:37,130 --> 00:13:39,530 S1: No, not at all. I mean, I think the key is, uh, 254 00:13:39,530 --> 00:13:41,770 S1: you know, if you want to buy one, are you 255 00:13:41,809 --> 00:13:45,890 S1: able to, uh, you know, get into one that has, 256 00:13:46,300 --> 00:13:49,820 S1: a mortgage payment that fits within your budget. And that, 257 00:13:49,820 --> 00:13:51,900 S1: for a rule of thumb, is typically going to be, 258 00:13:51,940 --> 00:13:54,860 S1: you know, no more than 25% of, of what you 259 00:13:54,860 --> 00:13:57,939 S1: have coming in as income. Uh, just to make sure 260 00:13:57,940 --> 00:14:00,140 S1: you've got enough left for everything else. There's nothing wrong 261 00:14:00,140 --> 00:14:03,300 S1: with buying a home at age 60 or older. You 262 00:14:03,300 --> 00:14:04,900 S1: just need to make sure you're going to be in 263 00:14:04,900 --> 00:14:08,780 S1: a position to cash flow that into the future and 264 00:14:08,780 --> 00:14:11,260 S1: make sure you've got the income to support it. Reverse 265 00:14:11,260 --> 00:14:13,660 S1: mortgages are folks that that don't have the ability to 266 00:14:13,700 --> 00:14:16,699 S1: do that and can pay off an existing mortgage and 267 00:14:16,700 --> 00:14:19,580 S1: make that payment optional, which could be a game changer 268 00:14:19,580 --> 00:14:22,300 S1: in their financial lives. Stay on the line. We'll talk 269 00:14:22,300 --> 00:14:23,980 S1: a bit more off the air. We'll be right back. 270 00:14:28,820 --> 00:14:31,260 S1: Thanks for joining us today on Faith and Finance Live. 271 00:14:31,260 --> 00:14:34,020 S1: I'm Rob West. Harlan Akil is here today. He leads 272 00:14:34,020 --> 00:14:38,140 S1: the reverse team at Movement Mortgage, an underwriter of this program. Harlan, 273 00:14:38,140 --> 00:14:39,900 S1: you and I were talking recently. And by the way, 274 00:14:39,900 --> 00:14:41,780 S1: we'll head back to the phones here in just a moment. 275 00:14:41,780 --> 00:14:44,619 S1: If you have a question on any topic and certainly 276 00:14:44,880 --> 00:14:49,040 S1: those related to reverse mortgages. Because Harlan is here. Call 277 00:14:49,080 --> 00:14:53,800 S1: right now 800 525 7000. Harlan, you and I were 278 00:14:53,800 --> 00:14:57,760 S1: talking recently just about the staggering statistics related to the 279 00:14:57,760 --> 00:15:02,680 S1: number of falls that occur in the home with folks 280 00:15:02,680 --> 00:15:05,840 S1: that are in that fourth quarter of life. Um, how 281 00:15:05,840 --> 00:15:08,840 S1: so many homes are not equipped because they were built 282 00:15:08,840 --> 00:15:12,000 S1: decades ago? They don't have some of the, the modern, uh, 283 00:15:12,000 --> 00:15:18,120 S1: efficiencies that are needed for folks as they age, namely multi-level, but, 284 00:15:18,120 --> 00:15:20,680 S1: but beyond that as well. And one of the things 285 00:15:20,680 --> 00:15:22,400 S1: I think a lot of people don't realize is if 286 00:15:22,400 --> 00:15:25,200 S1: they need to move to get closer to family or 287 00:15:25,520 --> 00:15:27,920 S1: to buy a newer home that has some of these 288 00:15:27,920 --> 00:15:31,360 S1: features that are suited for them as they age. Often 289 00:15:31,360 --> 00:15:34,640 S1: you can buy a home with the reverse and the 290 00:15:34,640 --> 00:15:36,800 S1: payments become optional from day one, right? 291 00:15:36,840 --> 00:15:40,680 S2: Well, yes, I was working with a, uh, a group 292 00:15:40,680 --> 00:15:44,450 S2: of Christian realtors, uh, a few weeks ago. And I said, 293 00:15:44,450 --> 00:15:46,770 S2: if you guys don't get out there and get some 294 00:15:46,770 --> 00:15:49,290 S2: listings to help people my age get out of their houses, 295 00:15:49,290 --> 00:15:52,010 S2: people are going to die. I was joking, of course, 296 00:15:52,050 --> 00:15:55,010 S2: but not really because there are so many people that 297 00:15:55,010 --> 00:15:58,530 S2: are in the wrong house and they feel trapped because 298 00:15:58,570 --> 00:16:00,610 S2: they either have a very low interest rate or they 299 00:16:00,610 --> 00:16:02,490 S2: have their house paid off and they feel they can't 300 00:16:02,490 --> 00:16:05,650 S2: afford a newer house that's more energy efficient, that suits 301 00:16:05,650 --> 00:16:09,210 S2: their lifestyle better and has those right features. Um, this 302 00:16:09,210 --> 00:16:11,850 S2: is not a few people, this is literally millions of 303 00:16:11,850 --> 00:16:13,970 S2: people that are in the wrong house and they're in 304 00:16:13,970 --> 00:16:15,770 S2: a house where they raise their kids that are multiple 305 00:16:15,770 --> 00:16:19,570 S2: levels and, and usually requires a lot more maintenance than, 306 00:16:19,570 --> 00:16:23,770 S2: than newer homes and higher utility costs. Uh, so if 307 00:16:23,770 --> 00:16:26,450 S2: anybody's in that situation, it is so important for them 308 00:16:26,450 --> 00:16:29,730 S2: to know that they have options. Um, and we've worked 309 00:16:29,730 --> 00:16:31,730 S2: with so many of the cars out there to help 310 00:16:31,730 --> 00:16:34,410 S2: people relocate to the right house rather than the house 311 00:16:34,410 --> 00:16:38,970 S2: that they feel they're stuck in. Um, such an important mission. And, um, 312 00:16:39,010 --> 00:16:42,990 S2: it's so easily avoidable. Some of these problems and where 313 00:16:42,990 --> 00:16:46,110 S2: you live has a bigger impact on your health than 314 00:16:46,190 --> 00:16:48,910 S2: just about any other decision that you make in retirement. 315 00:16:48,910 --> 00:16:50,830 S2: And we're so glad to be able to help people 316 00:16:50,870 --> 00:16:52,110 S2: sort through those options. 317 00:16:52,470 --> 00:16:55,150 S1: Yeah. That's great. Thanks for that. All the lines are full, 318 00:16:55,150 --> 00:16:57,110 S1: so let's get to as many calls as we can. 319 00:16:57,150 --> 00:16:59,150 S1: Denise is in Illinois. Denise. Go ahead. 320 00:17:00,470 --> 00:17:03,830 S6: Hi, Rob. Hi, Harlan. Thanks for taking the call. Um, boy, 321 00:17:03,870 --> 00:17:07,150 S6: I guess I'm in the fourth quarter of my life. Um, 322 00:17:08,070 --> 00:17:13,189 S6: my question is, with regard to the line of credit, 323 00:17:13,230 --> 00:17:16,870 S6: we still owe $32,000 on our home. Are we still 324 00:17:16,910 --> 00:17:18,949 S6: able to get that line of credit? 325 00:17:20,109 --> 00:17:20,550 S1: HMM. 326 00:17:20,630 --> 00:17:21,429 S2: Well, yeah. 327 00:17:21,430 --> 00:17:21,990 S5: What happened. 328 00:17:22,310 --> 00:17:22,950 S6: First? 329 00:17:23,790 --> 00:17:26,270 S2: No, that's a big misconception. Denise, you do not have 330 00:17:26,270 --> 00:17:27,869 S2: your house paid off. My house was not paid off 331 00:17:27,869 --> 00:17:30,710 S2: when I did my reverse mortgage. The first draw on 332 00:17:30,710 --> 00:17:34,189 S2: the line of credit pays off your existing mortgage. And 333 00:17:34,230 --> 00:17:36,710 S2: then we give you, let's say your line of credit 334 00:17:36,710 --> 00:17:39,830 S2: is 100,000. Well, the first draw would be the 32,000. 335 00:17:39,869 --> 00:17:43,480 S2: And then you get the remaining amount that's left after 336 00:17:43,520 --> 00:17:45,840 S2: we pay off the existing mortgage and the closing costs. 337 00:17:46,080 --> 00:17:48,119 S2: That money then is available in the line of credit. 338 00:17:48,119 --> 00:17:50,320 S2: So there's just an initial balance on the line of credit, 339 00:17:50,320 --> 00:17:53,439 S2: just like there is now. We just transfer that and 340 00:17:53,440 --> 00:17:57,440 S2: refinancing that from a regular loan to an optional payment loan. 341 00:17:57,480 --> 00:17:59,160 S2: You do not have to pay to have it paid 342 00:17:59,160 --> 00:17:59,960 S2: down to zero. 343 00:18:01,359 --> 00:18:04,800 S6: Okay. And then I heard right before you took my call, 344 00:18:04,800 --> 00:18:08,359 S6: you were talking about these houses that are not suitable 345 00:18:08,359 --> 00:18:10,480 S6: and our house really is not suitable. As a matter 346 00:18:10,480 --> 00:18:13,119 S6: of fact, I just suffered a fall on January 23rd, 347 00:18:13,160 --> 00:18:17,080 S6: and I. It was outside of the house, but it's, 348 00:18:18,400 --> 00:18:22,040 S6: you know, I'm the young one here. Yeah. So it's like, 349 00:18:22,080 --> 00:18:24,440 S6: this is we got stairs all over the place. You know, 350 00:18:24,480 --> 00:18:27,400 S6: the stuff is downstairs. There's stuff. It's just it's too 351 00:18:27,400 --> 00:18:29,160 S6: big for us. And so I don't even know if 352 00:18:29,160 --> 00:18:30,119 S6: we'd be able to. 353 00:18:31,800 --> 00:18:32,560 S2: Do we do all. 354 00:18:32,560 --> 00:18:33,040 S7: Kinds of. 355 00:18:34,200 --> 00:18:36,200 S2: Yes, we do all kinds of Zoom calls on that 356 00:18:36,200 --> 00:18:38,359 S2: to say, okay, here's where you're at. Here's where you 357 00:18:38,359 --> 00:18:41,260 S2: might like to be and go through that process of 358 00:18:41,260 --> 00:18:43,020 S2: what it would be like to sell your existing house, 359 00:18:43,060 --> 00:18:47,180 S2: pay off that $38,000, $32,000 mortgage, and then move to 360 00:18:47,220 --> 00:18:49,340 S2: a different house. And what would be involved in the 361 00:18:49,340 --> 00:18:53,100 S2: cost of moving expenses, realtor expenses, and so on. We've 362 00:18:53,140 --> 00:18:56,060 S2: talked through literally hundreds of clients like that, and I 363 00:18:56,060 --> 00:18:57,780 S2: don't know if it makes sense for you, but it 364 00:18:57,780 --> 00:18:59,379 S2: would certainly be worth an hour of your time. 365 00:19:00,460 --> 00:19:03,020 S6: Absolutely. Okay. So I can call you. 366 00:19:03,060 --> 00:19:07,580 S1: Excellent. Yeah, yeah, you can go to faith.com/movement and connect 367 00:19:07,580 --> 00:19:09,260 S1: with the team there. They'd be happy to help you 368 00:19:09,260 --> 00:19:12,139 S1: in any way they can. They're, they're really all about education. 369 00:19:12,140 --> 00:19:14,859 S1: In fact. Denise, hold the line and we'll send you 370 00:19:14,859 --> 00:19:16,740 S1: a copy of Harlan's book. That'd be a great start 371 00:19:16,740 --> 00:19:21,260 S1: for you. Uh, again, that website dot com slash movement. Uh, 372 00:19:21,260 --> 00:19:23,419 S1: let's go to Chicago. PatriciaH. Go right ahead. 373 00:19:24,340 --> 00:19:27,220 S8: Hi, Rob. Uh, super excited to be on the line. 374 00:19:27,260 --> 00:19:28,419 S8: First time caller. 375 00:19:28,540 --> 00:19:29,980 S1: Um, awesome. Thanks. 376 00:19:30,619 --> 00:19:32,740 S8: And, and thank you, Harlan, as well for taking my 377 00:19:32,740 --> 00:19:36,859 S8: call and my question. Um, I have two cars and 378 00:19:36,859 --> 00:19:39,960 S8: a trailer that is at a recreational site that are 379 00:19:40,000 --> 00:19:43,719 S8: kind of high on the interest, uh, side. I spoke 380 00:19:43,720 --> 00:19:50,199 S8: with my regular banking company and they mentioned maybe refinancing 381 00:19:50,200 --> 00:19:53,840 S8: the home bundled with the three vehicles. Wanted to know 382 00:19:53,840 --> 00:19:55,720 S8: if that was a good idea. 383 00:19:56,400 --> 00:19:59,440 S1: Yeah. You know, I typically am not a fan of that. 384 00:19:59,480 --> 00:20:01,719 S1: I mean, I'd rather you. I mean, I realize you 385 00:20:01,720 --> 00:20:03,840 S1: can make that work on paper, especially if you can 386 00:20:03,840 --> 00:20:06,960 S1: reduce the interest rate and kind of get it all 387 00:20:06,960 --> 00:20:11,480 S1: simplified in one loan. Um, I would prefer we, you know, 388 00:20:11,520 --> 00:20:14,160 S1: really dial back your lifestyle and let's go attack those 389 00:20:14,160 --> 00:20:17,520 S1: right where they are and not, uh, make them secured 390 00:20:17,520 --> 00:20:21,560 S1: by your home where you live. Um, I think just 391 00:20:21,560 --> 00:20:25,240 S1: as a general rule, that's a, that's a better approach. Um, 392 00:20:25,640 --> 00:20:27,400 S1: what are the interest rates on those? 393 00:20:27,800 --> 00:20:33,760 S8: Uh, the trailer is at 9.99. One of the vehicles 394 00:20:33,760 --> 00:20:41,570 S8: is at about 7.6 and another vehicle is about 6.9%. 395 00:20:41,609 --> 00:20:44,730 S1: Okay. Yeah. So, I mean, if it were me, rather 396 00:20:44,730 --> 00:20:47,810 S1: than paying, you know, the cost associated with the refi, 397 00:20:48,050 --> 00:20:51,250 S1: not to mention the fact that we're taking a piece 398 00:20:51,250 --> 00:20:56,409 S1: of an asset like a RV and securing it to 399 00:20:56,450 --> 00:20:59,169 S1: your house. But, um, you know, you're not going to 400 00:20:59,170 --> 00:21:01,290 S1: get a whole lot of reduction in interest. So I'd 401 00:21:01,290 --> 00:21:04,610 S1: probably just snowball it. Um, you know, let's get as 402 00:21:04,650 --> 00:21:06,449 S1: lean as you can on your budget. Let's free up 403 00:21:06,450 --> 00:21:09,210 S1: as much as you can in surplus. And then let's 404 00:21:09,210 --> 00:21:13,050 S1: attack that probably highest interest rate first, just given that 405 00:21:13,050 --> 00:21:15,610 S1: it's nearly 10% and see if we can get that 406 00:21:15,609 --> 00:21:17,489 S1: paid off and then just roll right down to the 407 00:21:17,490 --> 00:21:20,130 S1: next one. I would, I would feel better about that approach. 408 00:21:20,130 --> 00:21:22,689 S1: But Patricia, I appreciate you being a first time caller. 409 00:21:22,690 --> 00:21:26,169 S1: Thanks for being a, a regular listener. Uh, we're grateful. Uh, 410 00:21:26,170 --> 00:21:29,210 S1: Jacqueline in Ohio coming your way. And then, uh, every 411 00:21:29,210 --> 00:21:33,010 S1: line jammed up. A lot of people. Got questions for you, Harlan. Uh, 412 00:21:33,010 --> 00:21:35,409 S1: this is, uh, an important topic, and we'll continue to 413 00:21:35,410 --> 00:21:38,950 S1: unpack it. Uh, just around the corner. Harlan Akilah here today. 414 00:21:38,950 --> 00:21:41,750 S1: He leads the team at the reverse team at Movement 415 00:21:41,750 --> 00:21:44,270 S1: Mortgage and underwriter of this program. You can learn more 416 00:21:44,270 --> 00:21:55,710 S1: at free.com. We'll be right back. I'm so glad you're 417 00:21:55,710 --> 00:21:58,150 S1: tuning in today to Faith and Finance Live. I've got 418 00:21:58,150 --> 00:22:00,629 S1: a great team here making this happen each day, and 419 00:22:00,670 --> 00:22:03,350 S1: we've got a great friend on with us today, Harlan Accola. 420 00:22:03,350 --> 00:22:07,230 S1: He's clearing up reverse mortgage myths. Harlan, what is the 421 00:22:07,270 --> 00:22:10,270 S1: single biggest myth around reverse mortgages? 422 00:22:10,470 --> 00:22:14,830 S2: It comes up almost every time the bank owns the house. And, um, 423 00:22:14,910 --> 00:22:17,990 S2: in the case of his, he's selling the house. Of course, 424 00:22:17,990 --> 00:22:21,390 S2: that's that's our foreclosures. That's what happens. We never own 425 00:22:21,430 --> 00:22:24,070 S2: the house. We're only have a lien against it. And 426 00:22:24,070 --> 00:22:28,030 S2: it's simply that we allow people to put interest onto 427 00:22:28,030 --> 00:22:30,910 S2: the balance instead of paying cash. But we never take 428 00:22:30,910 --> 00:22:33,229 S2: over ownership of the house. It always is in the 429 00:22:33,230 --> 00:22:36,720 S2: ownership of the client, their trust, or their children at 430 00:22:36,720 --> 00:22:37,199 S2: the end. 431 00:22:37,720 --> 00:22:41,919 S1: Yeah. Is one of the honorable mentioned myths that when 432 00:22:41,920 --> 00:22:44,880 S1: one spouse dies, the other gets kicked out of the house. 433 00:22:45,359 --> 00:22:48,040 S2: Well, without question. And we almost always have to cover 434 00:22:48,040 --> 00:22:51,600 S2: that because it was true in the past. Foolish husbands 435 00:22:51,600 --> 00:22:54,080 S2: could take their wives off from title and have a 436 00:22:54,080 --> 00:22:55,680 S2: grand old time with the two of them. And then 437 00:22:55,680 --> 00:22:59,399 S2: when he died, the wife was required to pay off 438 00:22:59,400 --> 00:23:00,959 S2: the loan because she was never on the loan. She 439 00:23:00,960 --> 00:23:03,720 S2: wasn't even on the title. That was a horrible thing. 440 00:23:03,720 --> 00:23:05,840 S2: And it wasn't really the fault of reverse mortgages, but 441 00:23:05,880 --> 00:23:08,960 S2: it was the fault of the, um, foolish husbands that 442 00:23:08,960 --> 00:23:11,199 S2: made that decision. Well, now the law changed. And if 443 00:23:11,240 --> 00:23:13,600 S2: you're married, you have no choice but to have both 444 00:23:13,640 --> 00:23:17,800 S2: spouses on the loan so that the younger spouse or 445 00:23:17,840 --> 00:23:21,000 S2: the surviving spouse does not get kicked out. So it 446 00:23:21,359 --> 00:23:24,040 S2: that's been fixed for ten years. People still talk about it. 447 00:23:24,320 --> 00:23:28,080 S1: Yeah. That's helpful. Let's go to Ohio w CRF. Hi, Jacqueline. 448 00:23:28,080 --> 00:23:29,680 S1: Thanks for your patience. How can we help you? 449 00:23:30,480 --> 00:23:31,960 S9: Uh, yes. How are you doing today? 450 00:23:32,240 --> 00:23:33,840 S1: Great. Thank you. I hope you are. 451 00:23:34,940 --> 00:23:37,500 S9: Sure. I'm sorry. Um. I always wanted to know about 452 00:23:37,540 --> 00:23:42,300 S9: reverse mortgages. Um, we have some debt, and we're in 453 00:23:42,300 --> 00:23:46,780 S9: our early 60s, and, um, we run into an issue 454 00:23:46,780 --> 00:23:49,979 S9: about having enough money for the month because of our 455 00:23:49,980 --> 00:23:52,659 S9: health insurance costs are like 2000 a month, but we 456 00:23:52,660 --> 00:23:55,540 S9: get reimbursed a little bit of that. But is it 457 00:23:55,540 --> 00:23:58,379 S9: a reverse mortgage? Uh, the best thing for us to 458 00:23:58,420 --> 00:24:01,900 S9: do since we're in our early 60s and the health 459 00:24:01,900 --> 00:24:04,340 S9: insurance problem may go away with Medicaid. 460 00:24:04,900 --> 00:24:07,660 S1: HMM. Yeah. Harlan, what what questions would you have for 461 00:24:07,660 --> 00:24:10,220 S1: Jacqueline as you kind of diagnose her situation? 462 00:24:10,260 --> 00:24:14,580 S2: Yeah. Um, Jacqueline, uh, the when you're talking about going away, 463 00:24:14,580 --> 00:24:17,620 S2: I assume you're talking about Medicare kicking in at 65. 464 00:24:17,660 --> 00:24:18,500 S2: Is that correct? 465 00:24:19,300 --> 00:24:19,820 S9: Yes. 466 00:24:20,700 --> 00:24:23,060 S2: Yeah. There's a lot of people that will use reverse 467 00:24:23,100 --> 00:24:27,220 S2: mortgages to either bridge that health insurance cost from 62 468 00:24:27,220 --> 00:24:31,219 S2: to 65, or to delay Social Security so that they 469 00:24:31,260 --> 00:24:33,620 S2: are able to get a larger amount, especially for their 470 00:24:33,619 --> 00:24:37,400 S2: spouse if they pass. That isn't always the best idea. 471 00:24:37,600 --> 00:24:39,479 S2: We need to know just what else is going on 472 00:24:39,480 --> 00:24:41,840 S2: with your cash flow, but it is a frequent use 473 00:24:41,840 --> 00:24:45,359 S2: of a reverse mortgage to be a bridge for that gap. 474 00:24:45,400 --> 00:24:48,200 S2: And the thing is, if you get a reverse mortgage 475 00:24:48,200 --> 00:24:50,359 S2: and then you can eventually pay the money back because 476 00:24:50,359 --> 00:24:52,760 S2: your income is going to increase when you don't have 477 00:24:52,760 --> 00:24:55,880 S2: $2,000 a month for your care. When Medicare kicks in, 478 00:24:55,920 --> 00:24:59,240 S2: you can always pay back whatever you use. Even the 479 00:24:59,240 --> 00:25:02,199 S2: previous caller, Patricia, one of the things I'd add to 480 00:25:02,240 --> 00:25:05,480 S2: that is if you're going to snowball debt, it's you 481 00:25:05,480 --> 00:25:07,840 S2: can snowball debt inside of a reverse mortgage too. And 482 00:25:07,840 --> 00:25:12,399 S2: then that increases your ability to be able to have 483 00:25:12,400 --> 00:25:15,760 S2: more lines of credit available in case there's a surprise 484 00:25:15,760 --> 00:25:18,920 S2: that comes down the road that you're not anticipating. So 485 00:25:19,200 --> 00:25:23,280 S2: the quick answer to your question, Jacqueline, is maybe, um, 486 00:25:23,280 --> 00:25:27,320 S2: because health insurance costs often leads to credit card debt 487 00:25:27,640 --> 00:25:31,360 S2: and or simply very difficult to even buy food and 488 00:25:31,359 --> 00:25:35,050 S2: clothes and gas. So it can be very helpful between 489 00:25:35,050 --> 00:25:38,409 S2: that three year gap. We've had clients that have cancelled 490 00:25:38,410 --> 00:25:42,810 S2: their health insurance and between 62 and 65, and had 491 00:25:42,810 --> 00:25:45,530 S2: a devastating situation where it ended up in bankruptcy. You 492 00:25:45,530 --> 00:25:48,290 S2: just can't go without it, which obviously you aren't. But 493 00:25:48,330 --> 00:25:50,290 S2: if we can pave the way to make it easier 494 00:25:50,290 --> 00:25:53,690 S2: during that time period. And the problem does go away, 495 00:25:53,970 --> 00:25:56,330 S2: that's fine. You only used a certain amount out of 496 00:25:56,330 --> 00:25:59,210 S2: your reverse, and you can always pay it back when 497 00:25:59,250 --> 00:26:01,290 S2: cash flow gets better down the road. That's what a 498 00:26:01,290 --> 00:26:03,090 S2: lot of people don't realize. You can make a payment 499 00:26:03,090 --> 00:26:05,409 S2: on a reverse mortgage if you wish, just like you 500 00:26:05,410 --> 00:26:07,450 S2: do with a regular mortgage. It's just not required. 501 00:26:07,850 --> 00:26:10,090 S1: Yeah. Jacqueline, hang on the line. We'll get you a 502 00:26:10,090 --> 00:26:12,810 S1: copy of Harlan's book. Thanks for calling today. B is 503 00:26:12,810 --> 00:26:14,450 S1: in Florida. B, how can we help you? 504 00:26:15,369 --> 00:26:18,490 S10: Hello. Yes. Thanks for taking my call. 505 00:26:18,770 --> 00:26:19,090 S1: Sure. 506 00:26:19,130 --> 00:26:24,810 S10: I, I have I'm I'm a widow and I don't 507 00:26:24,810 --> 00:26:27,090 S10: have a whole lot of income, but I do have 508 00:26:27,090 --> 00:26:31,610 S10: a mortgage still. My husband's name was the only one 509 00:26:31,650 --> 00:26:34,550 S10: on the mortgage. My name is on the on the deed. 510 00:26:34,550 --> 00:26:36,910 S10: But his name was the only one on the mortgage 511 00:26:36,910 --> 00:26:40,150 S10: and he passed away. The house. The home is in 512 00:26:40,150 --> 00:26:44,070 S10: the estate of. I still make the mortgage payment. It's 513 00:26:44,390 --> 00:26:46,669 S10: still a reverse mortgage work for me. 514 00:26:46,910 --> 00:26:47,630 S1: Yeah. Harlan. 515 00:26:47,990 --> 00:26:50,990 S2: We have many widows that after their husband leaves and 516 00:26:50,990 --> 00:26:52,429 S2: my heart goes out to you. That's one of the 517 00:26:52,430 --> 00:26:55,629 S2: main reasons why I'm in this business, because there's so 518 00:26:55,630 --> 00:26:58,950 S2: many widows that are in the exact situation that you're in. 519 00:26:58,950 --> 00:27:00,870 S2: And it was easy to make the mortgage payment when 520 00:27:00,869 --> 00:27:02,670 S2: both of you are alive. But when that Social Security 521 00:27:02,670 --> 00:27:05,070 S2: check stopped a month after his passing, it makes a 522 00:27:05,070 --> 00:27:07,990 S2: pretty big difference. And we're very aware of that. Um, 523 00:27:08,310 --> 00:27:10,270 S2: so again, it always depends. We ask a few more 524 00:27:10,270 --> 00:27:13,709 S2: questions and go through the education process. But does it 525 00:27:13,710 --> 00:27:15,670 S2: make sense for you to continue to make a mortgage 526 00:27:15,670 --> 00:27:19,390 S2: payment when you don't have to and other things are tight? Um, 527 00:27:19,390 --> 00:27:21,630 S2: the answer is most of the time, yes, at least 528 00:27:21,630 --> 00:27:24,950 S2: make your mortgage payment optional because otherwise if you miss 529 00:27:24,950 --> 00:27:26,949 S2: a mortgage payment, you can lose the house even though 530 00:27:26,950 --> 00:27:29,230 S2: it wasn't in your name in the beginning. And it's 531 00:27:29,230 --> 00:27:32,040 S2: in the state of um, so we will have to 532 00:27:32,080 --> 00:27:35,560 S2: work with the title and the mortgage situation, but that's 533 00:27:35,560 --> 00:27:38,040 S2: simply a lien against the property and we've done that 534 00:27:38,040 --> 00:27:41,960 S2: many times. So you certainly are eligible from a logistical standpoint. 535 00:27:42,000 --> 00:27:44,680 S2: We just go through the education standpoint to see if 536 00:27:44,680 --> 00:27:46,720 S2: that's the best way to do it. But having an 537 00:27:46,760 --> 00:27:50,159 S2: optional mortgage payment instead of required mortgage payment is always 538 00:27:50,440 --> 00:27:51,640 S2: an awful lot safer. 539 00:27:52,240 --> 00:27:56,160 S1: Yeah. Harlan if it obviously if she owns title to 540 00:27:56,160 --> 00:27:59,360 S1: the property because of the way the law is written, 541 00:27:59,400 --> 00:28:02,679 S1: you know, when he passes, they can't the lender can't 542 00:28:02,680 --> 00:28:05,680 S1: force her to refinance or pay it off, which they didn't. 543 00:28:05,680 --> 00:28:08,000 S1: She's still paying on it. But if she were to 544 00:28:08,000 --> 00:28:10,800 S1: get a reverse, it would pay it off. Right. And 545 00:28:10,800 --> 00:28:12,760 S1: as long as she's on the title, there's no issue, 546 00:28:12,800 --> 00:28:13,280 S1: is there? 547 00:28:13,800 --> 00:28:18,440 S2: That's exactly correct. It simply transfers your mortgage from and 548 00:28:18,440 --> 00:28:21,120 S2: protects you up to age 150 that you don't have 549 00:28:21,119 --> 00:28:24,440 S2: to make any payments. But we just refinance his mortgage 550 00:28:24,440 --> 00:28:27,120 S2: that was done in his name into a mortgage in 551 00:28:27,119 --> 00:28:29,440 S2: your name that protects you and the home. 552 00:28:29,820 --> 00:28:31,260 S1: Yeah. B is that helpful? 553 00:28:31,540 --> 00:28:35,460 S10: Yes. Perry. One more question. The loan was the VA loan. 554 00:28:35,460 --> 00:28:36,660 S10: Would that make a difference? 555 00:28:37,180 --> 00:28:41,940 S2: It doesn't. It's obviously something that, um, you know, as 556 00:28:41,940 --> 00:28:46,219 S2: a VA widow. Um, and thanks for your husband's service. Um, 557 00:28:46,340 --> 00:28:48,380 S2: you aren't, you aren't kicked out, but you have to 558 00:28:48,380 --> 00:28:50,780 S2: continue to make the payment, but we're just, whether it's 559 00:28:50,780 --> 00:28:53,220 S2: a Fannie Mae or Freddie Mac or a line of credit, 560 00:28:53,220 --> 00:28:57,100 S2: we're simply replacing that loan with a reverse to protect 561 00:28:57,100 --> 00:29:00,660 S2: you and to make that payment optional. So no, that 562 00:29:00,660 --> 00:29:02,860 S2: would work just the same. Regardless of what type of 563 00:29:02,860 --> 00:29:03,540 S2: loan it is. 564 00:29:04,300 --> 00:29:06,620 S1: B stay on the line. We'll get your information. We'll 565 00:29:06,620 --> 00:29:09,100 S1: send you Harlan's book. And if you want somebody to 566 00:29:09,140 --> 00:29:13,340 S1: contact you, if that's easier than going to faith.com/movement, just 567 00:29:13,340 --> 00:29:14,900 S1: let the team know and they'll put you in touch 568 00:29:14,900 --> 00:29:18,020 S1: with somebody. Uh, let's stay in Florida. Patricia. Go right ahead. 569 00:29:18,300 --> 00:29:20,860 S11: Hi, gentlemen. Thank you so much for taking my call. 570 00:29:21,180 --> 00:29:25,100 S11: I'm a realtor that is representing a client that has 571 00:29:25,100 --> 00:29:29,390 S11: a reverse mortgage on the property. Um, it's the sons 572 00:29:29,390 --> 00:29:32,710 S11: that inherited it through a lady bird deed. They never 573 00:29:32,710 --> 00:29:35,310 S11: lived in it, but we have been trying to sell 574 00:29:35,310 --> 00:29:38,950 S11: it and it is not. Um, the offers that we're getting, 575 00:29:38,990 --> 00:29:41,989 S11: we've gotten quite a number of offers, but none of 576 00:29:41,990 --> 00:29:46,430 S11: them thus far have covered the balance of the mortgage 577 00:29:46,430 --> 00:29:49,510 S11: as well as the closing costs. We've come close, but 578 00:29:49,510 --> 00:29:53,710 S11: we're we're usually around 10 to $15,000 short. We've asked 579 00:29:53,710 --> 00:29:58,190 S11: them inquired about, um, doing a short sale, had it appraised, 580 00:29:58,190 --> 00:30:00,990 S11: but it appraised at much higher than the offers are 581 00:30:00,990 --> 00:30:03,390 S11: coming in. Wanted to find out if you had any 582 00:30:03,390 --> 00:30:06,790 S11: suggestions on what we could do. We've asked about them 583 00:30:06,990 --> 00:30:10,350 S11: throwing in some money for the closing costs, but have 584 00:30:10,350 --> 00:30:12,190 S11: been denied. So I was wondering if you had any 585 00:30:12,830 --> 00:30:13,590 S11: other ideas. 586 00:30:13,950 --> 00:30:16,950 S1: Yeah, it's a fascinating situation. Let me do this. Harlan, 587 00:30:16,950 --> 00:30:18,910 S1: I know you have thoughts. Patricia. I want you to 588 00:30:18,910 --> 00:30:21,430 S1: hear those thoughts. I'm up against a break, so I'm 589 00:30:21,430 --> 00:30:23,190 S1: going to get you both to hold. And then as 590 00:30:23,190 --> 00:30:25,630 S1: soon as we come back, we'll get Harlan to weigh 591 00:30:25,630 --> 00:30:28,690 S1: in on this situation and where to go from here. Uh, 592 00:30:28,690 --> 00:30:31,410 S1: this is Faith and finance live. Harlan Accola here today. 593 00:30:31,410 --> 00:30:44,650 S1: Back with our final segment right after this. Stick around. Well, 594 00:30:44,690 --> 00:30:47,130 S1: Harlan Akil is here today. I'm Rob West. This is 595 00:30:47,130 --> 00:30:50,250 S1: Faith and Finance Live. We're talking about reverse mortgages, trying 596 00:30:50,250 --> 00:30:53,090 S1: to clear up some myths and taking a lot of questions. 597 00:30:53,090 --> 00:30:54,930 S1: Still got a ton of phone calls. We'll try to 598 00:30:54,930 --> 00:30:56,530 S1: get to as many as we can. Before the break, 599 00:30:56,530 --> 00:30:59,730 S1: we were talking to Patricia in Florida. She's a realtor, 600 00:30:59,770 --> 00:31:01,890 S1: has a client who's trying to sell a house that 601 00:31:01,890 --> 00:31:04,850 S1: has a reverse mortgage, but they're not getting offers high 602 00:31:04,850 --> 00:31:08,890 S1: enough to cover the balance and and closing costs. Harlan, 603 00:31:08,890 --> 00:31:10,330 S1: what were your thoughts for Patricia? 604 00:31:11,010 --> 00:31:14,970 S2: Well, I'm so glad that Patricia called because never should 605 00:31:14,970 --> 00:31:19,570 S2: any errors pay anything in regardless of the situation. Uh, 606 00:31:19,610 --> 00:31:23,130 S2: there is one appraisal that is done. I don't know 607 00:31:23,130 --> 00:31:26,930 S2: how long ago that was done. After someone passes. That 608 00:31:26,950 --> 00:31:29,070 S2: could have been six months ago. It could have been 609 00:31:29,070 --> 00:31:31,110 S2: a year or more ago. Depending upon exactly what the 610 00:31:31,110 --> 00:31:35,870 S2: situation is, those appraisal values can be contested with the 611 00:31:35,910 --> 00:31:38,390 S2: knowledge of what you're doing. You've already had offers that 612 00:31:38,390 --> 00:31:41,830 S2: are below the appraised value, and if there's consistent offers below, 613 00:31:41,830 --> 00:31:45,070 S2: that means the original appraisal was wrong and is flawed 614 00:31:45,070 --> 00:31:47,710 S2: and was probably too optimistic. Or maybe it was done 615 00:31:47,710 --> 00:31:51,590 S2: at a time with older comps that can be redone. Um, 616 00:31:51,870 --> 00:31:53,790 S2: please get in touch with us. We work directly with 617 00:31:53,790 --> 00:31:57,030 S2: all the servicers and we'll get this taken care of 618 00:31:57,030 --> 00:32:01,150 S2: and get this house sold, because that never should the 619 00:32:01,150 --> 00:32:03,910 S2: heirs bring one dime in. They are never obligated to 620 00:32:03,910 --> 00:32:07,350 S2: do that. That's not their responsibility. And we will make 621 00:32:07,390 --> 00:32:09,190 S2: sure that's taken care of. I don't know who the 622 00:32:09,190 --> 00:32:11,950 S2: servicer is, but our team works with all of the 623 00:32:11,950 --> 00:32:14,229 S2: major servicers. It doesn't have to be our loan. We 624 00:32:14,230 --> 00:32:17,430 S2: will help you with it and very concerned about it. 625 00:32:17,430 --> 00:32:19,790 S2: But I wish we would have talked earlier when you 626 00:32:19,790 --> 00:32:22,110 S2: started getting the first offers, because it would have been 627 00:32:22,110 --> 00:32:23,989 S2: less of a hassle for you. So thank you so 628 00:32:23,990 --> 00:32:25,030 S2: much for calling in. 629 00:32:25,310 --> 00:32:28,120 S1: So Harlan, would the FHA step in and cover it, 630 00:32:28,120 --> 00:32:30,680 S1: or would the servicer just have to take less because 631 00:32:30,680 --> 00:32:32,440 S1: the home is worth less than they think? 632 00:32:33,080 --> 00:32:34,920 S2: Well, the servicer takes less, but they're still going to 633 00:32:34,920 --> 00:32:37,360 S2: get reimbursed by FHA. They just have to prove why 634 00:32:37,360 --> 00:32:40,239 S2: they took less. And so the servicer is just saying, well, 635 00:32:40,240 --> 00:32:43,200 S2: that's what the appraised value is because they think that's 636 00:32:43,200 --> 00:32:45,520 S2: what the number is. But when there's multiple when the 637 00:32:45,560 --> 00:32:47,840 S2: realtor has been PatriciaH been trying to sell it. And 638 00:32:47,840 --> 00:32:50,680 S2: that's not happening. We need to get the appraisal is 639 00:32:50,680 --> 00:32:53,080 S2: wrong and the appraisal can be contested at any given time, 640 00:32:53,080 --> 00:32:55,600 S2: which obviously is the case because otherwise it would have 641 00:32:55,600 --> 00:33:00,520 S2: sold already. So FHA will still reimburse the lender. Uh, 642 00:33:00,560 --> 00:33:03,040 S2: they just simply have to know why they're reducing the 643 00:33:03,040 --> 00:33:05,480 S2: amount and come up with a new appraisal. 644 00:33:06,560 --> 00:33:07,840 S1: PatriciaH thoughts on that? 645 00:33:07,880 --> 00:33:16,160 S11: We've actually requested information from the server about contesting the appraisal. 646 00:33:16,360 --> 00:33:23,400 S11: And it seems as if, um, the. It seems very cumbersome. 647 00:33:23,400 --> 00:33:27,460 S11: It doesn't seem like there's a very clear path on 648 00:33:27,460 --> 00:33:30,540 S11: how to do that as far as, uh, the statistics 649 00:33:30,540 --> 00:33:32,780 S11: that they're giving us, as far as the difference in 650 00:33:32,780 --> 00:33:36,780 S11: the value it has to be. I think, uh, 90% 651 00:33:36,820 --> 00:33:38,980 S11: or something along those lines, I don't have it all 652 00:33:38,980 --> 00:33:42,100 S11: in front of me, but we have inquired about contesting 653 00:33:42,100 --> 00:33:47,020 S11: the appraisal and it for what? From what Compulink is 654 00:33:47,020 --> 00:33:50,300 S11: telling us, um, it doesn't seem like that's going to 655 00:33:50,300 --> 00:33:52,460 S11: be a viable path for us. 656 00:33:52,900 --> 00:33:56,460 S2: It will be Compulink is a, um, a bit of 657 00:33:56,460 --> 00:34:01,540 S2: a difficult servicer and we've worked with them before and 658 00:34:01,580 --> 00:34:04,980 S2: it's 95% of the appraised value, uh, or whatever the 659 00:34:04,980 --> 00:34:08,700 S2: new appraised value is. So, uh, it, it, uh, that's 660 00:34:08,700 --> 00:34:11,299 S2: already written into the contract from the beginning. The short 661 00:34:11,300 --> 00:34:14,060 S2: sale is guaranteed. And so it's just a question of 662 00:34:14,100 --> 00:34:19,020 S2: reestablishing what the appraised value would be. So, um, it is, 663 00:34:19,180 --> 00:34:22,379 S2: it is irritating because compulink is a, not a great 664 00:34:22,380 --> 00:34:24,710 S2: service or not a service that we use. I'm not 665 00:34:24,710 --> 00:34:26,950 S2: trying to talk against anyone, but they are more of 666 00:34:26,950 --> 00:34:29,350 S2: a problem service, or they have more problems with customer 667 00:34:29,350 --> 00:34:32,790 S2: service because they simply don't understand some of the things 668 00:34:32,790 --> 00:34:35,830 S2: that they should be doing. So, um, we will help 669 00:34:35,830 --> 00:34:37,710 S2: with that and get in contact with the people that 670 00:34:37,710 --> 00:34:39,430 S2: can move some of those things faster. 671 00:34:39,989 --> 00:34:42,270 S1: Well, Tricia, if you want to take advantage of his assistance, 672 00:34:42,270 --> 00:34:44,270 S1: he'd be happy to offer. Just hang on the line. 673 00:34:44,310 --> 00:34:47,469 S1: Our team will get you connected. And, um, hopefully he 674 00:34:47,469 --> 00:34:49,630 S1: can be a resource to you. Thanks for checking in 675 00:34:49,630 --> 00:34:54,109 S1: with us today. A really discouraging but important situation going 676 00:34:54,110 --> 00:34:57,470 S1: on here. Let's go to, uh, well, we'll stay in Florida. Nadine, 677 00:34:57,469 --> 00:34:58,230 S1: how can we help? 678 00:34:59,430 --> 00:35:00,750 S9: Hello? Hello. 679 00:35:01,550 --> 00:35:05,149 S12: I'm. I'm hoping everybody is having a great day. Um, 680 00:35:05,150 --> 00:35:10,470 S12: my question was about reverse mortgage, and my father has 681 00:35:10,469 --> 00:35:13,830 S12: not passed yet, but we were interested in putting the 682 00:35:13,830 --> 00:35:17,710 S12: house in a trust. But we need more information. Don't 683 00:35:17,710 --> 00:35:21,150 S12: know exactly. Can we do that since it has the 684 00:35:21,150 --> 00:35:22,510 S12: reverse mortgage on it? 685 00:35:22,930 --> 00:35:24,090 S1: MM. Yeah. Harlan. 686 00:35:24,450 --> 00:35:27,170 S2: So you already have a reverse mortgage now, is that correct? 687 00:35:27,890 --> 00:35:28,650 S12: Yes. 688 00:35:28,850 --> 00:35:32,930 S2: Okay. Um, the answer is yes. Um, when you're transferring 689 00:35:32,969 --> 00:35:37,170 S2: a house or a reverse or a house from your 690 00:35:37,170 --> 00:35:40,890 S2: name to a trust, you're technically transferring it, which then 691 00:35:40,890 --> 00:35:42,810 S2: you have to get the okay from whoever the lien 692 00:35:42,810 --> 00:35:45,930 S2: holder is, which is obviously the reverse mortgage in this case. 693 00:35:45,930 --> 00:35:48,610 S2: So it can be done. They will just need copies 694 00:35:48,610 --> 00:35:50,330 S2: of all the pages of the trust as to where 695 00:35:50,330 --> 00:35:52,930 S2: it's going. Um, but you do have to look at 696 00:35:52,969 --> 00:35:57,049 S2: why you want to do that. Um, reverse mortgages protect 697 00:35:57,050 --> 00:36:01,410 S2: the house in a lot of ways that like I personally, 698 00:36:01,410 --> 00:36:03,130 S2: I have a trust, but I don't have my house 699 00:36:03,130 --> 00:36:05,689 S2: in reverse mortgage and I'm not giving you any legal advice, 700 00:36:05,690 --> 00:36:07,770 S2: but you just want to be able to accomplish what's there. 701 00:36:07,770 --> 00:36:10,250 S2: But the short answer is, yes, it can be done. 702 00:36:10,290 --> 00:36:13,690 S2: You simply have to contact the servicer, let them know 703 00:36:13,690 --> 00:36:16,529 S2: what's going on and why, and giving a copy of 704 00:36:16,530 --> 00:36:20,410 S2: the trust and a revocable or irrevocable trust will work 705 00:36:20,410 --> 00:36:21,830 S2: inside of a reverse mortgage. 706 00:36:23,030 --> 00:36:26,190 S1: Very good. Nadine. Sounds like it's possible. You're just going 707 00:36:26,190 --> 00:36:27,830 S1: to have to reach out to the servicer. Thank you 708 00:36:27,830 --> 00:36:33,430 S1: for calling. Uh, staying in Florida. Rosa. Go ahead. Hi, Rosa. 709 00:36:33,430 --> 00:36:34,150 S1: Go right ahead. 710 00:36:35,469 --> 00:36:39,950 S13: Yes. Um, I'm. My husband and I are 56, 55 711 00:36:39,989 --> 00:36:42,870 S13: so far. So we're not close to retirement age. And 712 00:36:42,870 --> 00:36:44,830 S13: I was just wondering if we're too young to do 713 00:36:44,870 --> 00:36:48,110 S13: a reverse mortgage. We're still working and everything full time 714 00:36:48,390 --> 00:36:52,950 S13: and have children under 30. So I'm wondering if we're 715 00:36:52,950 --> 00:36:55,950 S13: too young to get a reverse mortgage and how long 716 00:36:56,150 --> 00:36:57,950 S13: can you live with it? Like how long does it? 717 00:36:57,950 --> 00:36:59,669 S13: I don't even know how it works, but how long 718 00:36:59,670 --> 00:37:01,509 S13: can you live? Reverse mortgage? 719 00:37:01,550 --> 00:37:01,990 S1: Okay. 720 00:37:03,110 --> 00:37:06,270 S2: Well, great question, Rosa. Um, I was 62 when I 721 00:37:06,270 --> 00:37:10,390 S2: did mine. So you're you're even past by a few years. Um, 722 00:37:10,670 --> 00:37:12,790 S2: it's not too young. It just depends, again, what you 723 00:37:12,790 --> 00:37:13,870 S2: want to accomplish. 724 00:37:14,270 --> 00:37:17,989 S1: Well, she said she's 56. Just to clear that up, though. Oh, 725 00:37:17,989 --> 00:37:18,270 S1: I thought. 726 00:37:18,270 --> 00:37:20,070 S2: She said 66 and 65. 727 00:37:21,760 --> 00:37:23,600 S1: Uh. What what are your ages, Rosa? 728 00:37:24,560 --> 00:37:31,000 S13: 56. I'm 56, and my husband's 55. Five. Five. Five. Six. Yeah. 729 00:37:31,440 --> 00:37:33,240 S1: 55 and 56. Harlan. 730 00:37:33,760 --> 00:37:38,040 S2: Oh, okay. I just didn't hear that. Right. I'm sorry. Uh, so, yes, um, 731 00:37:38,080 --> 00:37:41,200 S2: in Florida, there is a product that's available at 55, 732 00:37:41,239 --> 00:37:44,880 S2: but it's not usually as good a product to have 733 00:37:44,920 --> 00:37:47,719 S2: to accomplish what you want. And so it's probably better 734 00:37:47,719 --> 00:37:50,440 S2: to wait until 62. Again, it comes down to the 735 00:37:50,440 --> 00:37:53,319 S2: education of what you want to accomplish for yourself and 736 00:37:53,320 --> 00:37:57,000 S2: for your kids in their 30s. Um, if you wait 737 00:37:57,040 --> 00:38:00,759 S2: till 62, that guarantees you in the house until you're 738 00:38:00,760 --> 00:38:04,680 S2: 150 years old. So it doesn't matter how early it's done, 739 00:38:04,680 --> 00:38:08,480 S2: you always have until you're 150 years old. So there's 740 00:38:08,680 --> 00:38:12,640 S2: no worry about doing it too early. Um, but you 741 00:38:12,640 --> 00:38:14,799 S2: might want to look at some of the other products 742 00:38:14,960 --> 00:38:20,219 S2: that start at 55. Um, but generally the best thing 743 00:38:20,219 --> 00:38:23,020 S2: to do is to wait until 62. We go through 744 00:38:23,020 --> 00:38:26,500 S2: education with people at. Even when they're in their 50s 745 00:38:26,540 --> 00:38:30,020 S2: and doing a refinancing of forward mortgage. Um, and so 746 00:38:30,020 --> 00:38:32,219 S2: it comes down again to what you want to accomplish. 747 00:38:32,219 --> 00:38:34,900 S2: There's no forward mortgage or reverse mortgage. That's always a 748 00:38:34,900 --> 00:38:37,460 S2: good idea. It's always a good idea to check out 749 00:38:37,460 --> 00:38:40,620 S2: what you're eligible for. Um, and maybe you should do 750 00:38:40,620 --> 00:38:43,020 S2: something early, but it probably will make sense for you 751 00:38:43,020 --> 00:38:44,419 S2: to wait until you're 62. 752 00:38:45,020 --> 00:38:49,380 S1: Yeah. Very good. We're getting short on time quickly to Illinois. Uh, Antoinette. 753 00:38:49,380 --> 00:38:54,220 S1: Go ahead. Okay. Uh, Harlan, I'm seeing one question here. Um, 754 00:38:54,260 --> 00:38:56,500 S1: and I'll just read it because I know we're short 755 00:38:56,500 --> 00:39:01,260 S1: on time here. Um, Carl said his financial advisor suggested 756 00:39:01,260 --> 00:39:03,819 S1: they may want to get a reverse mortgage in order 757 00:39:03,820 --> 00:39:07,540 S1: to help repair the house in the future. Wondering if 758 00:39:07,540 --> 00:39:10,420 S1: that's a good idea. And also what happens if they 759 00:39:10,420 --> 00:39:11,500 S1: don't ever use it? 760 00:39:12,300 --> 00:39:14,339 S2: Well, I always say the best time. My dad told 761 00:39:14,340 --> 00:39:16,299 S2: me the best time to borrow money is when you 762 00:39:16,300 --> 00:39:18,910 S2: don't need it. And so if you know that there's 763 00:39:18,910 --> 00:39:21,870 S2: some things approaching, you make plans for it. And that's 764 00:39:21,870 --> 00:39:25,069 S2: really something that's taught in Proverbs as well. Um, if 765 00:39:25,110 --> 00:39:28,870 S2: you never use it, uh, you have paid for insurance, 766 00:39:28,870 --> 00:39:31,830 S2: so to speak, that you've never used, uh, because there's 767 00:39:31,830 --> 00:39:34,750 S2: some closing costs. And so if it's highly unlikely that 768 00:39:34,750 --> 00:39:36,710 S2: you would ever use it, well, it's not a wise 769 00:39:36,710 --> 00:39:38,589 S2: idea to spend any closing costs on it, but if 770 00:39:38,590 --> 00:39:40,750 S2: it's likely that something is going to come up in 771 00:39:40,750 --> 00:39:42,790 S2: the future, whether it be health care, whether it be 772 00:39:42,790 --> 00:39:45,910 S2: repairing on your house and being prepared for that, it's 773 00:39:45,910 --> 00:39:47,589 S2: a really good idea to do it before you have 774 00:39:47,590 --> 00:39:51,190 S2: to do it, before the roof starts leaking or before 775 00:39:51,550 --> 00:39:54,910 S2: something is critical. So, um, there's a lot of people 776 00:39:54,910 --> 00:39:57,110 S2: that put a line of credit in place. My father 777 00:39:57,110 --> 00:40:01,790 S2: never used his reverse until he was, uh, had a 778 00:40:01,790 --> 00:40:04,710 S2: stroke and needed care at home. A sad way to 779 00:40:04,710 --> 00:40:07,430 S2: use it, but it's good that it was in place. So, um, 780 00:40:07,469 --> 00:40:10,830 S2: if the financial advisor has, uh, encouraged you to do 781 00:40:10,830 --> 00:40:13,189 S2: at this point, he's probably thought things out, but we'd 782 00:40:13,230 --> 00:40:15,790 S2: be happy to give you the options and the numbers 783 00:40:15,790 --> 00:40:17,890 S2: of what would be there if you never used it, 784 00:40:17,890 --> 00:40:20,049 S2: but whatever you didn't use, 100% of it goes to 785 00:40:20,050 --> 00:40:22,129 S2: your kids anyway. So if you didn't use anything other 786 00:40:22,130 --> 00:40:24,049 S2: than the closing costs, the kids get it all. It's 787 00:40:24,050 --> 00:40:25,690 S2: not like you transferred ownership. 788 00:40:26,489 --> 00:40:28,649 S1: Carl, I know you're with us now. Does that is 789 00:40:28,650 --> 00:40:30,609 S1: that clear it up. Do you have any follow up questions? 790 00:40:30,890 --> 00:40:34,930 S14: Yeah, yeah. That was, um. I own a old house 791 00:40:35,250 --> 00:40:38,890 S14: and I've replaced the plumbing. I've replaced the air conditioning. 792 00:40:39,250 --> 00:40:42,810 S14: I've done a bunch of repairs, and, uh, I was 793 00:40:42,810 --> 00:40:45,610 S14: just worried about, you know, ten years down the road, 20. 794 00:40:45,810 --> 00:40:48,210 S14: I need a roof, you know, that kind of thing. 795 00:40:48,730 --> 00:40:51,370 S1: Yeah. Any other thoughts? 796 00:40:52,130 --> 00:40:54,730 S2: Yeah. I just hate it when somebody comes in and 797 00:40:54,730 --> 00:40:58,049 S2: it's just a, um. Uh, it's a crisis. And we're 798 00:40:58,050 --> 00:41:01,009 S2: happy to help people in a crisis, but being prepared 799 00:41:01,530 --> 00:41:03,890 S2: is better than a crisis. And I think that's why 800 00:41:03,890 --> 00:41:06,130 S2: the advisor and I used to own a old house 801 00:41:06,170 --> 00:41:09,930 S2: and surprises came along, it seemed, every year. Uh, so 802 00:41:09,969 --> 00:41:11,890 S2: would it be wise to have that in place? Because 803 00:41:11,890 --> 00:41:13,930 S2: then at that point, the money is there and you 804 00:41:13,930 --> 00:41:15,770 S2: don't have to wait 4 or 6 weeks to get 805 00:41:15,770 --> 00:41:19,219 S2: things done. You've already got things in place and it's 806 00:41:19,219 --> 00:41:22,500 S2: a lot less worrying on your mind when something like 807 00:41:22,500 --> 00:41:25,060 S2: that happens and the money is just there and ready 808 00:41:25,060 --> 00:41:26,819 S2: to be used. The only thing I always say, the 809 00:41:26,820 --> 00:41:29,100 S2: only thing certain about the future, is that it's uncertain. 810 00:41:29,140 --> 00:41:31,980 S2: And it's not just repairs on your house. There's other 811 00:41:31,980 --> 00:41:33,419 S2: things that happen in retirement. 812 00:41:33,739 --> 00:41:36,860 S1: Yeah, that's well said, Karl. Thanks for your call today. Well, Harlan, 813 00:41:36,860 --> 00:41:39,300 S1: you did it. I think we covered a record number 814 00:41:39,300 --> 00:41:41,540 S1: of questions today. You got you gave a lot of 815 00:41:41,540 --> 00:41:44,980 S1: great information. And we're always appreciative of our time with you. 816 00:41:44,980 --> 00:41:45,860 S1: Thanks for being here. 817 00:41:46,460 --> 00:41:48,380 S2: Well thank you Rob. It's glad to be able to 818 00:41:48,380 --> 00:41:49,020 S2: help folks. 819 00:41:49,580 --> 00:41:51,500 S1: Uh, you do a great job at it, folks. If 820 00:41:51,500 --> 00:41:53,660 S1: you want to connect with Harlan and his team, head 821 00:41:53,660 --> 00:42:00,180 S1: to faith.com slash that's faith f i.com slash. Big thanks 822 00:42:00,180 --> 00:42:03,380 S1: to my team today. Josh Taylor to hira Omar and 823 00:42:03,380 --> 00:42:06,180 S1: everybody here at faith fi that make this possible. Faith 824 00:42:06,180 --> 00:42:08,540 S1: in Finance live is a partnership between moody radio and 825 00:42:08,540 --> 00:42:12,660 S1: faith fi. Head to faith fi.com/give to support the ministry 826 00:42:12,660 --> 00:42:14,420 S1: and then come back and join us tomorrow. We'll see 827 00:42:14,420 --> 00:42:15,220 S1: you then. Bye bye.