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Unlocking the Hidden Potential of Reverse Mortgages

Updated: Mar 22, 2023

RL160 - Unlocking the Hidden Potential of Reverse Mortgages


In this episode of the Retirement Lifestyle Show, Erik Olson and Adrian Nicholson break down reverse mortgages and their use in retirement planning. They discuss the different types of reverse mortgages, ways to extend the life of your portfolio, and the mechanics of an efficient reverse mortgage.



[00:00] Introduction

[01:47] Challenges Retirees Face When Planning for Retirement

[04:37] What is a Reverse Mortgage?

[07:55] The Different Types of Reverse Mortgages

[09:20] Biggest Drawback of Taking on a Reverse Mortgage

[12:15] Erik Shares an Actual Use Case of Reverse Mortgages

[17:33] Practical Ways You Could Use a Reverse Mortgage

[24:08] When to Start and How Reverse Mortgages Work

[26:29] How to Extend the Life of Your Portfolio

[28:33] Reasons for People Holding Bonds in Their Portfolios

[30:45] Pros and Cons of a Reverse Mortgage

[38:47] Mechanics of an Efficient Reverse Mortgage

[40:05] Resources on How to Apply for Home Equity Loan

[43:50] Parting Thoughts



For more links and the full show notes keep scrolling down!


Roshan Loungani can be reached at roshan.loungani@aretewealth.com or at 202-536-4468.


Erik Olson can be reached at erik.olson@aretewealth.com or 815-940-4652.


Adrian Nicholson can be reached at adrian.nicholson@aretewealth.com or at 703-915-8905.

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For other links to listen NOW! https://retirementlifestyleshow.com/show-notes/


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Full Show Notes:


What is a Reverse Mortgage?

A reverse mortgage is a type of loan that allows homeowners who are 62 years or older to convert a portion of their home equity into cash, without having to sell their home or make monthly mortgage payments. How does it work? Well, instead of the homeowner making payments to the lender, the lender makes payments to the homeowner, either in a lump sum, monthly payments, or a line of credit. The loan is typically repaid when the homeowner sells the home, moves out, or passes away. One of the major benefits of a reverse mortgage is that it can provide a source of income for retirees who may be struggling to make ends meet. However, it's important to note that the loan will need to be repaid eventually, and the interest can compound over time, potentially reducing the equity in the home.


Unfortunately, reverse mortgages can come with high fees and interest rates, so it's important to research and understand the terms and conditions before signing up for one. It's also a good idea to discuss your options with a trusted financial advisor.


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All opinions expressed by podcast hosts and guests are solely their own. While based on information that they believe is reliable, neither Arete Wealth nor its affiliates warrant its completeness or accuracy, nor do their opinions reflect the opinion of Arete Wealth. This podcast is for general informational purposes only, and should not be regarded as specific advice or recommendations for any individual. Before making any decisions, consult a professional.

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