October 20, 2025 • 44 mins
In the podcast episode of "Money & You," host Michelle Perkins discusses the topic of reverse mortgages with an expert guest, Laura Phillips. The conversation emphasizes the importance of understanding financial tools like reverse mortgages, particularly for seniors, as a means to tap into home equity for financial security. The discussion highlights common misconceptions and the hesitance of financial advisors to address reverse mortgages, which can lead to misinformation among the public.
The episode aims to educate listeners about the mechanics of reverse mortgages, including eligibility requirements and potential benefits, such as alleviating monthly mortgage payments. Michelle and Laura also touch on the emotional and practical implications of these loans, especially for women who may outlive their partners.
This episode is significant as it seeks to empower listeners with knowledge about financial options that can enhance their quality of life in retirement, ultimately fostering a healthier relationship with money. The conversation reflected ongoing concerns about planning for the future and helped to inform people about an option they may not have considered.
00:01 - Introduction to money mindset
07:48 - Understanding reverse mortgages
17:35 - Benefits and considerations
26:54 - Selling with a reverse mortgage
38:55 - Empowerment through financial knowledge
Key Takeaways:- Reverse mortgages can be a valuable financial tool for seniors, allowing them to tap into their home equity without monthly payments.- Education and open discussions about reverse mortgages can help dispel myths and empower homeowners to make informed decisions.- It’s essential to consult with knowledgeable professionals who specialize in reverse mortgages to understand the full implications of such loans.
Laura Phillips is a mortgage broker for decades and an expert in reverse mortgages with extensive experience in the field. Laura shares her insights and knowledge to help listeners navigate this complex topic and can be reached at: aura@lauraphillips.com --------------------------------------------------------------------------------
For more tools and conversations about money mindset, practical tips, confidence, and financial empowerment…
Subscribe to the Money & You Podcast: Apple Podcasts, spotify, iheart radio and more
Please rate & review and share the show with friends and family who want to feel more confident and in control of their financial lives—it really helps us!Join the Limit Free Life Community & Blog: https://limitfreelife.com/newsletter
Learn more about Michelle Perkins: https://limitfreelife.com
LinkedIn: Michelle M. Perkins MBA on LinkedIn
Instagram: @livealimitfreelife
YouTube: https://www.youtube.com/@michelleperkins-limitfreel2446For more tools and conversations about money mindset, practical tips, confidence, and financial empowerment…
The episode aims to educate listeners about the mechanics of reverse mortgages, including eligibility requirements and potential benefits, such as alleviating monthly mortgage payments. Michelle and Laura also touch on the emotional and practical implications of these loans, especially for women who may outlive their partners.
This episode is significant as it seeks to empower listeners with knowledge about financial options that can enhance their quality of life in retirement, ultimately fostering a healthier relationship with money. The conversation reflected ongoing concerns about planning for the future and helped to inform people about an option they may not have considered.
00:01 - Introduction to money mindset
07:48 - Understanding reverse mortgages
17:35 - Benefits and considerations
26:54 - Selling with a reverse mortgage
38:55 - Empowerment through financial knowledge
Key Takeaways:- Reverse mortgages can be a valuable financial tool for seniors, allowing them to tap into their home equity without monthly payments.- Education and open discussions about reverse mortgages can help dispel myths and empower homeowners to make informed decisions.- It’s essential to consult with knowledgeable professionals who specialize in reverse mortgages to understand the full implications of such loans.
Laura Phillips is a mortgage broker for decades and an expert in reverse mortgages with extensive experience in the field. Laura shares her insights and knowledge to help listeners navigate this complex topic and can be reached at: aura@lauraphillips.com --------------------------------------------------------------------------------
For more tools and conversations about money mindset, practical tips, confidence, and financial empowerment…
Subscribe to the Money & You Podcast: Apple Podcasts, spotify, iheart radio and more
Please rate & review and share the show with friends and family who want to feel more confident and in control of their financial lives—it really helps us!Join the Limit Free Life Community & Blog: https://limitfreelife.com/newsletter
Learn more about Michelle Perkins: https://limitfreelife.com
LinkedIn: Michelle M. Perkins MBA on LinkedIn
Instagram: @livealimitfreelife
YouTube: https://www.youtube.com/@michelleperkins-limitfreel2446For more tools and conversations about money mindset, practical tips, confidence, and financial empowerment…
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Have you ever had a money or career question you
really wanted to ask, but didn't know who to go to,
or just felt uncomfortable even bringing it up. You're not alone.
Talking about money can feel intimidating, even scary, and that's
exactly what I'm trying to change. That's why I created
a free virtual coffee chat, a casual, no pressure, twenty
(00:21):
minute conversation where you can bring one thing you're wrestling
with and we'll talk it through. No judgment, no jargon,
no sales pitch, just clarity, ease, and a real answer
from someone who gets it. If you've got something on
your mind, don't sit in the confusion. Book a spot
at limitfreelife dot com and let sip.
Speaker 2 (00:40):
And sort it out.
Speaker 1 (00:42):
Hey there, and welcome to Money in You. I'm Michelle Perkins,
your host. My search for more fulfilling work led me
to career in business coaching, where I stumbled upon a
game changing discovery. Money issues often start with our mindset
and habits. You see, our relationship with money is the
key to becoming those frustrating financial obstacles. As an entrepreneur, coach,
(01:04):
and problem solver, I'm passionate about helping you create a
great relationship with money, because turns out that's the foundation
for limit free life. Each week on Money in You,
I speak with amazing guests about all things money, mindset,
practical tips, and everything in between. We're here to give
you new insights, education, and empowerment, so money can be
(01:25):
one of your favorite relationships. So join us for some
lively conversations and let's transform your financial life together. Hello, Hello,
and welcome to this episode of the Money and You Show.
I'm Michelle Perkins, your host, CEO and founder of Limit
Free Life, and I am really excited about our guests.
Speaker 2 (01:46):
Today.
Speaker 1 (01:47):
We're going to talk about some a topic you probably
don't hear a lot about on podcasts very often. We're
talking about reverse mortgages with an expert in the field,
and you know, here's a mindset for you. Sometimes when
we hear a topic, we can or like immediately attracted
to it, like I've got to hear about that. And
(02:08):
other times there are topics that maybe we haven't heard
much about or we have preconceived ideas about. For example,
reverse mortgage information is something that I'll worry about, you know,
in forty years, So I want you to think about that,
because the whole purpose of this show is to give
you a broad financial education, which is a huge step
(02:30):
toward financial well being, so that you can have this
like arsenal of ideas for the future, so whether it's
retirement planning or just you know, building this foundation of
knowledge so that as things come up in life, you
have information, You have the ideas that you can go
then learn more about or talk to somebody about. And
(02:50):
so I think it's really important even with the topics
that you may not have necessarily a huge interest.
Speaker 2 (02:58):
In right now.
Speaker 1 (02:58):
Maybe you're on the younger side and you think this
is for the future, Please listen in. Please just get
to know what's out there for you in the finance world,
because you never know when you might be more interested
in something, and if at least that seed has been planted,
you can go and draw from your wealth of information.
So I think this is going to be a really interesting show.
(03:19):
I actually can't wait because there's a lot that I
want to know about this particular topic. So without further ado,
I'm going to introduce Laura Phillips. Laura Phillips is a
licensed reverse mortgage specialist with over twenty five years of
experience in real estate lending, dedicated to guiding clients through
(03:40):
the HCM and reverse loan process to ensure they make
informed financial decisions for their futures. Serving all of Colorado,
she specializes in FH, HGCM and proprietary portfolio jumbo reverse loans,
helping our client enhance and preserve their retirement assets. Laura
(04:03):
believes that a home is more than just a house.
It's a significant financial commitment and she is committed to
helping families enjoy their best years in their homes. And Tony,
I'm excited for you to hear their show because you
are a new homeowner and this will be interesting.
Speaker 2 (04:19):
So welcome Laura. Well, thank you so much for having
me on boorn. Michelle, I'm really glad to be here.
I'm really glad that you are here. And let's start
out with what is h ECM. What does that stand?
Thank you?
Speaker 1 (04:31):
I could barely say it.
Speaker 2 (04:32):
Yeah, and it's pronounced heckham, which sounds like you're coughing
up something that you don't really want to cough up.
But it stands for home Equity Mortgage conversion.
Speaker 1 (04:45):
More interesting now, okay, great.
Speaker 2 (04:48):
So, and that's actually what it is. It's taking your
equity and converting it so that you can use it. It
is alone. I'm going to start there with it. Absolutely
is alone. It's not a Gary item any more than
any other loan that you do. Is to be honest
with you, I think it's misunderstood and there's a lot
(05:08):
of urban myth around it. So let's stay that. I've
been ask you some questions.
Speaker 1 (05:13):
Yeah, so I love this, and i'd love to know,
given your background, what drew you to this particular you
know area.
Speaker 2 (05:24):
I've been a mortgage lender for oh my god, over
thirty years, maybe even closer to forty because my daughter's
birthday was today. Oh she can grow up with me
doing it. So we're going to go forty now. And
I looked at the picture you had of me, and
I think I'm a little bit more gray now than
I was before.
Speaker 1 (05:40):
Okay, we all change our hair color. That's fine.
Speaker 2 (05:44):
So I got involved with this probably my first one
was about fifteen years ago, and it was kind of
just a fluke. Gentleman called and said he wanted to
do a reverse mortgage. I thought, Okay, I'll do that,
but I have to go read about how to do it.
And he wanted to do it because he wanted to
buy his wife a dream trip. She had been diagnosed
(06:05):
with a terminal illness and was still well enough to travel,
and he wanted to use his equity to give her
a gift that she would remember in those final days
when it wasn't so much fun. Gives me goosebumps to
this day to even think about it or talk about it.
But as I moved through life of being a reverse
well being a mortgage lender actually for about forty years,
(06:25):
I found that this is an under underserved and certainly
misunderstood product. And I can speak to seniors. I'm right
there with you, and I think that there's a comfort
zone for a lot of seniors to go, oh, this
person has been through the life changes with me in
(06:48):
some form or fashion and understands my concerns and fears. Now,
so it's easier to talk to seniors being a senior. Yeah, yeah,
I agree.
Speaker 1 (06:58):
But I also, you know, like I said the intro,
I think it's so what we don't know, you know,
that's a problem. And I think in the finance world,
it's so important to have more information than you need
in the moment. You know, just so that you can
draw from it at some point or at least remember, hey,
that's a thing, you know, maybe that would help me
(07:18):
at some later point. And I think it's it's very
interesting that I hear so little about this. And I
also will tell you my bias because I, unlike many
things in the financial world, I've not necessarily heard. I've
not necessarily heard a lot of negatives, honestly, but I've
also not heard a lot of positives or anything. So
(07:40):
you assume, well, this must not be the greatest way
to go. So how do you address that?
Speaker 2 (07:47):
Well, I think I think a lot of people don't
know about it, and a lot of financial advisors are
very hesitant to discuss it. So that is a lot
of white people don't know about it. And then if
they were to go to say their church, of their
friends and a social group and say hey, I'm thinking
about getting a reverse mortgage, the comment that they're going
(08:09):
to hear is oh my god, don't do that, or
oh you know, and they have some kind of war story,
and that scares the average person out there from even
taking their toe into to the subject and even learning
a little bit about it. So this is probably why
you don't hear a lot about it. I mean, we
all see Tom Selle, like on the TV selling reverse mortgages, right,
(08:32):
you know, and there have been lots of other celebrities
that have sold them over the years. But that's not
going to get you to really pick up the phone
and want to learn more about it, let's face it.
In fact, you might even be more skeptical because you
saw it on TV.
Speaker 1 (08:47):
That's true, That's very true. And I think that's the
big problem with the financial industry is there are some
great products out there and great options for people, but
there are also, you know, some rather poor ones, and
you know, some really shady ones, and so it becomes
very very difficult to trust. And so you know, that's
(09:07):
where I love that you're a mortgage broker for so long,
because you know, there's just a trust factor in that
as well. And I don't know, I don't know. There
are other things out there that I've had the same
reaction that you just described around things and you know,
twenty thirty years later, I'm sorry, I don't know more
(09:29):
about them. Yeah, you know, whole what they used to
call whole life was one of them. And when I
was first coming along. You know, people talk to me
about it, and it was expensive, and I didn't get it,
and it was never explained well, and so I just
you know, I spent my whole life really almost looking
for evidence that it was a bad thing because I
didn't have it, and I didn't and oftentimes now it's
(09:51):
it's sort of transformed a bit in there all kinds
of new versions, and I've had a number of people
come on the show and talk about life insurance options
that I never really gave it thought to. So that's
a mistake. You know, we want at least.
Speaker 2 (10:04):
Learn, absolutely, and it is a mistake to not at
least inquire. And I fully believe in educating any client
that comes to me and talks about reverse mortgages, whether
they do it or not, they're going to have a
good understanding and education of what it is and what
it can do. And I always talk about the good,
the bad, and the ugly ones. Might as well get
(10:24):
those elephants out in the room and let's talk about
them and see if they fit. If they absolutely fit.
So at the beginning, I mean, this loa's been out
since the Reagan era, so most of us remember President
Reagan and he and his administration was one of the
first to get this loan on the books and get
it into the federal HUT product. And it is a
(10:46):
federal program program. So but you know, there there was
a lot of not great thought into ramifications if we
did this or we did that. And I'm happy to
speak about some of the myths if you are.
Speaker 1 (11:00):
I would love to hear the miss I'd also just
like an overall description of what the heck it is listening.
Speaker 2 (11:07):
Absolutely, what the heck is a heck? I've often thought
about entitling that as a blog host. So what is
a reverse mortgage twelve? First of all, it's been out
in the United States since Reagan's erarand I guess I
should go back and actually look at the date of
his administration, so I'll just say that. And it was
(11:28):
designed the original one was designed to help a widow
who had five kids, husband had died and had no
way to live in the home and continue to raise
your children. But they had equity. They had equity in
the house. House must have been paid off or free
and clear at that point, I don't know. So a
savings loan came up with an internal program that would
(11:50):
allow her to tap the equity and she did not
have to make any payments if she didn't want to.
Now that's a plus and a minus that. The minus
to that is that the loan is going to grow,
the balance is going to grow. But this allowed her
to stay in the home and raise her children as
a single mother of five children. So that's how this
loan got started. It's in almost every I call us
(12:14):
the first world nations versus the developing world nations, so
it's in almost every country in some form or fashion
to help the seniors use their equity to allow them
to live a better life, whether it's to upgrade the
home and make it more comfortable, providing the ramps or
rab bars that you might need, or to just be
(12:35):
able to pay for medical care. So it is a
loan that allows you to tap your equity. You need
to be sixty two or older for the official HUT product.
If you have a higher loan balanced home or higher
value home, there is a proprietary loan that will allow
you to go to fifty five or younger. But let's
just talk about the main one. Because both of the
(12:58):
programs use the same guidelines. So you go in and
do a loan application, we do an appraisal. It's an
asset based loan, so we're going to be looking at
how much asset you have in your home value, and
then you're allowed to take a certain percentage out. So
right now, it's remember the old logarithm tables when you're
(13:19):
in high school, very similar or insurance things. We have
a chart and it is age and interest rate, and
so you go down to your age over the interest rate,
and that's going to show you how much. Literally it's
had the computer do it for us now, but the
old days of manual, that's exactly how we did it,
and that gives us how much equity you can tap
(13:42):
of your home. So you're not allowed to tap one
hundred percent. I think that's a misconception. When a lot
of people talk to me, it's like, oh, this is
all I get. You know, they're thinking that they can
take one hundred percent, and no, they don't want for
own protection. Really absolutely for their own protection. And that
number has gone down since the beginning of time to
(14:05):
about forty five percent or so for somebody who's sixty two,
and if you get up to ninety and I haven't
had a couple of ninety year old Jews. Then they're
getting close to the seventies of percent. And that is
to protect something. Nobody wants to own your home. You
want to own your home. You don't want to go
upside down. You don't want it to go into foreclosure
or on bankruptcy types of the situation. So that is
(14:26):
to protect the client. You bet, yeah, very interesting. So
you can borrow, you know, whatever percentage you're allowed to borrow.
And how does it work?
Speaker 1 (14:36):
So the qualifying you know, how does this work in
terms of accessing these.
Speaker 2 (14:42):
Well, it is still alone. So it's going to be
a loan process, just like you've done your whole life.
Whenever you did a refinance, you buy the house, you
did a loan. Very few people are lucky enough to
pay cash, and good for them that they can, but
most people end up getting alone. So you do a
loan application, you do have to take a class. This
is usually what defies most people. Oh my god, it's
(15:02):
like school again, and yes and no, that's true. The
class is offered by a third party HUD certified agency,
so they are all over the US there with both
your county and eight hundred numbers that you can call.
It is done by the telephone. It's about an hour. Law.
They want to make sure that you the senior and
(15:26):
it's hard to say that when you're sixty years old senior.
But understand that it is a negative amateurization loan, and
that's a scary term.
Speaker 1 (15:37):
Really.
Speaker 2 (15:37):
The reality is is, yes, the loan grows in balance
if you're not going to pay on it. You know,
banks don't lend money to for free, and they want
something back, and that's how banks make their money. So
this is designed that you do not know have to
make a payment if you don't wish to. It's the
only loan I know out there in my lending years
(15:59):
that would allow you to make a choice, make a payment,
make a partial payment, never make a payment. And then
but again, like I said, if you don't make the
interest payments then or balance payments either, then the loan
is going to grow. I haven't ever seen anybody say, oh,
I don't think I like that, particularly as they're aging.
(16:20):
Then most people at that point that talk to me
are on some kind of fixed income. They don't have
any other way of generating any additional income, and expenses
are getting harder as we get older. Basically there's more
medical costs that involved as we age, and they were
necessarily planning for it, so they're okay that they don't
(16:41):
have to make those payments. So once we've done this loan,
we get your class done, this little class that says, yes,
they understood what's going on. The only way you're going
to be able to lose the house is if you
don't pay your property taxes or you don't live in
and so those are the two biggest requirements that have
caused the home to be lost for lack of better words, foreclosure.
(17:02):
The bank takes it back once the client understands that
they've gone over all the details. Some agencies ask for
a budget, others don't, but that's really the whole situation.
Then we do the loan process, we get the loan information.
It's not a hard credit situation. We want to make
sure that you can afford to pay your property taxes
(17:22):
in your insurance, so we are looking at that. So
people social Security would cover one twelfth of that payment
each month if they didn't have to make other payments
out of their retirement funds. So that's what we're looking at.
And if you can make that, then we are able
to get an appraisal. We judge to see how much
you're remember the little chart, we're going to see how
(17:44):
you actually get. Then then we go to closing, so
the whole process. If it's a good year, no gremlins
are out there like Amazon going down today, closing got
a lot of things. Then we are able to close
the loan in six weeks, start to finish or less.
Speaker 1 (18:03):
Yeah, and then you're funded the full amount less.
Speaker 2 (18:07):
They are funded the amount that you're allowed. And now
if you have a mortgage against the property, we're going
to take that out of that portion that you're allowed.
So if you're allowed to have, say forty six percent,
and you have a loan balance, and we want to
make sure that we're paying off the loan balance, and
a good portion of cases, people are just happy that
they no longer have to make that anywhere from fifteen
(18:29):
hundred up mortgage payment because that's going back into their
pocket and the amount of relief and sigh when they
hear that and see that on paper and understand that
again they never have to make that payment, it's like, oh,
this is huge. Why don't more people do this? Why
don't people understand what this does, because it's a huge
(18:49):
it's a huge benefit.
Speaker 1 (18:51):
Yeah, yeah, that's very interesting. And so the negative amortization
is the idea that you know, in the normal loan,
you would be paying it down principle an interest, and
so that exact same thing is happening, but it's adding
to the loan.
Speaker 2 (19:05):
Correct, correct, Okay, And that has a lot of negative
thoughts because when we had arms out there, we had
the collapse of the industry back in nine and ten,
and also just the beginning armed products that came out,
they went into negative amateurization because of thoughts that didn't
(19:26):
think it through to make it a better product. So
this product, I said, product's been out for a long time.
There have been a lot of revisions, and I do
find it to be a kinder and gentler product than
it was in the beginning. So I'll tell a lot
of people it's not your grandmother's reverse, you know. Yeah,
I mean they thought about what happens to the spouse. Well,
in the early days, they didn't put these spouse, which
(19:48):
was usually the wife, onto the loan. So when the
loan when the husband died, at that point, she was
out on the street and you know again moments as
I say so, they have made it so that if
the spouse and you could have a spouse that's not
even sixty two years old and do a reverse mortgage,
(20:08):
there are protections out there now for the spouse that
were not put into the original loan product, which I
think helped it grow in its negative thoughts. Of course,
the other one was, and I touched on it briefly,
was people when we first gave these loans out back
in the day, we gave them seventy five to eighty
percent of their equity. That's a lot. Yeah, and if
(20:31):
you put negative amateurization on top of that, the house
was going to go upside down to the loan. Thus,
you know, the loan was more than the house was worth.
And the third thing was we didn't check to make
sure they could make the property taxes. So a lot
of people lost their homes because nobody checked to make
sure they had enough income coming in to make the
(20:52):
property taxes.
Speaker 1 (20:53):
Right right, very interesting, And so what happens in a
case where somebody lose a very long time and I've
never made a payment, and can you exceed with this
loan the equity or the I mean, can you go
as far as you can go with this and find
yourself can.
Speaker 2 (21:11):
And a lot of it depends on your age. So
if we're going to get a reverse mortgage when you're
sixty two years old and you live to be ninety,
because we are living longer, and that's we're having to
plan for another thirty years of quote retirement unquote, then yes,
you're probably going to see that house go upside down,
which means the house is worth less than the loan
(21:33):
and somewhere in your nineties. Absolutely, it's just basic math, right,
It really is just basic math. At that point. Most
of the homes that I have helped people with or
are loves with are looking at it in their early seventies.
And I'm not really predicting out a reverse an upside
(21:55):
down situation. And we can look at that on graphs.
When you work with me, I'm able to show you
lots of graphs and play what if we get on
we share my computer and we go what if the
interest rates go up? What if the interest rates go down?
What if I take more out of my home? I
have a line of credit, very popular product with the
reverse board, which what if I take out this much
(22:16):
each month and or each year. How does this affect
the loan and effect the value of my home? I
want to make sure people really understand what's going on.
Speaker 1 (22:26):
Right right, And you know, of course you could also
sit down with somebody and maybe they can't make a
full payment, but look at what a partial payment will do.
Speaker 2 (22:35):
I mean absolutely, and we can do that. We can
show interest payments, we can show paying off this line
of credit. It's most popular loan out there. There's there's
two options. A line of credit, which is probably mostly
familiar with from having gotten seconds on our homes exactly
the same way. It works exactly the same way, except
that it doesn't get turned off as it could and
(22:57):
did during the during the banking collapse back in nine
and ten. And the other one is a fixed rate.
I would say probably nationwide, I'm thinking of the number
off the top of my head, it's probably ninety five
percent of the loans are lines of credit. Because that
line of credit grows and its usage mount, so it
(23:18):
makes it quite popular, particularly if you don't need to
use it, and we can and again we play we
have models that the lenders have provided us that allow
us to show okay, well, this is how much your
line of credit is, and maybe you can't still make
interest only payments. That keeps your loan balance down right, Lots.
Speaker 1 (23:36):
Of different ways to look at that, you bet, And
I think if you have an expert like yourself looking
at it with somebody and all the options, that gives
you comfort.
Speaker 2 (23:46):
Too, because you couldn't have choice. I mean, choice is
always always a good thing.
Speaker 1 (23:50):
So if you, you know, and the person obviously can
take less if they want, I mean, if they're allowed
to take x amount, they can certainly take a look
certain amount if they prefer correct absolutely.
Speaker 2 (24:03):
In fact, in the changes that came out when President
Trump was in his first administration, they lowered how much
you could actually tap out of your home equity. So
that's down, as we said, we got a haircut. And
the other thing was is they wouldn't allow how much
you would allow to use the first year. So if
you are allowed two hundred thousand dollars, these are just
(24:25):
going to be numbers off the top of my head,
not real, then you might only be allowed to tap
fifty percent. It really is more like sixty five percent.
But I can do math really well at fifty percent. Yeah,
So fifty percent. The first year you would only allow
to begin after paying off any other closing costs, and
(24:45):
if you had a mortgage or not, you would only
get fifty percent of that money. The second year, you
would have the balance that you could use. Now again,
if you don't use it, it grows right right. Okay, wow,
very interesting. So let's talk about some of those myths,
some of the things that you hear out there from
people you work with that maybe are not true. Things. Well,
(25:08):
a lot of people say the bank owns your house,
and well, you know, the bank owns your house if
you think of it that way, from the very first
loan you ever got. That's not true. You are always
in title on your home. You own your home. It
is yours. It is a lean, it is a mortgage,
It is a lean against the home, and it does
not mean the bank owned your house. Of course, we've
(25:29):
talked about oh, you know the wife was out on
the streets. Well, we have that protection. So that's a
big one that I heard. I hear a lot or
how you know, they went into foreclosure somehow, and usually
if you delve into what was really going on, it
was probably that the person didn't pay his property taxes.
He forgot to pay them, so you're trying to remember
(25:51):
that now you're responsible for the property taxes. There's no
escrow account. You can get one. It's called Elisa, because
we have to have our own name for everything, Lisa,
which is alone equity set aside. I believe with all
that means, but I'm not sure that I've only seen
one Lisa used. I had a gentleman that required it
(26:13):
because he didn't want to keep track of remembering to
pay the taxes and insurance, and he asked for the
property taxes, and he keeps his own home owners insurance
up on his own. So those are kind of the
big ones. The other ones are there won't be any
equity left for my children, So that's a big concern.
If you want to leave your house to your kids,
(26:35):
your first mortgage is probably not a good choice. I
won't say not a good choice, but it may not
be the choice you want to think about, because it's
going to have a lean on it when your kids
inherit it, and they would have to pay that lean
off to be able to have the house. In some
way or another. They're going to have to go out
and get a loan of their own. So for those
that want have felt like they've always wanted to from
(26:58):
generation from generation to inherit the house from mom and
dad or grandma and grandpa, then this floan, let's really
talk about it. I think it's a conversation you need
to have with that reverse mortgage person to make sure
you understand what's going to happen.
Speaker 1 (27:14):
It's a really interesting question, you know, because what can
also happen is that the parent needs another place to
live if they're not going to keep the house, which
can actually be much more expensive, and so you know,
where does that money come from. I mean, it's a
kind of a bigger puzzle to sit down and go through.
(27:38):
That was my feeling that that must be one of
the big drawbacks is not being able to leave a
house free and clear. But I would imagine if somebody
has the house long enough though, that even with the
reverse mortgage, it may there still have some value if
the person were to inherit it or sell it or whatever.
Speaker 2 (27:59):
In most cases, I said, if you start out getting
a reverse mortgage in your sixties and you look again,
you live to the nineties, which is right now is
probably a realistic number for us, medicine is doing better
about keeping us alive, We're being healthier, you know, all
of those things. Then, yeah, that house is probably going
to be upside down. But if you do something later
on into your retirement years, A lot of people don't
(28:20):
retire at sixty two any longer. So I would say
there is value in the home, it's just not as much, right,
And that's why the haircut came, was to make sure
that like again, banks I've been lending for a long time,
that's the gray hair. The pigs don't want your house.
They're not in the house business. They're in the money
(28:43):
lending business, and so they don't want to take over
a bunch of four closed properties and they already had
a really bad experience once, so they're pretty sure they
don't want to do that.
Speaker 1 (28:53):
I'm going to say, when I watched the banks take
over not just houses but whole developments, you know, and things,
I honestly didn't understand. It seemed like a giant burden
for them and one that they couldn't really deal with.
So I was curious. Actually, that's an interesting point you
brought up. Did they learn like would they do it
that way again?
Speaker 2 (29:14):
I don't know. One would hope that we learned from
our mistakes, whether we are an organization or an individual,
Absolutely one would help. And one of the ways that
they found to help them them being the lenders, the
people behind the curtain, as I say, they have asked
or they didn't ask, but it was a decision that
(29:34):
had actually made in reviewing. How come we had so
many foreclosures? What was going on? Well, there's a whole
bunch over here in the early days that didn't have
enough money to pay their property taxes. Well, gosh, maybe
we never asked if they could. That's the aha moment
and the correction to the loan product. Same thing with
well if we gave them seventy five percent of their equity,
(29:58):
maybe that wasn't the best idea either. So this is
it is designed. It is actually a much kind of
product designed to protect the senior now and going forward,
so that it's not going to be such a headache
for them or their heirs.
Speaker 1 (30:14):
Yeah, yeah, okay, really interesting. And when you were saying
initially that like financial advisors might not be recommending this
or discussing it, well, why is that?
Speaker 2 (30:27):
Well, I think there are two things. One is not
knowing much about it. So and the other on was
in their early days. FIREA, I think I'm pronouncing that
correctly is their governance of how they can act. And
for a long time FIAREEA would not allow them to
talk about reverse mortgages. Their FIREA has since backtracked and
(30:50):
said no, that you can talk about it. And a
lot of it is because we as an industry have
to make sure the client is well educated. So that
education and the class coming from a certified hud councelor
helps say. I'm not trying to educate them. I mean,
I educate them so they can pass the class. Right,
(31:11):
that's my job to make sure that everybody's really comfortable
with what's going on. But the financial advisor is not
on the hook for saying maybe not having provided enough
education for the client. So I think a lot of
advisors are looking at it and saying, oh, this isn't
such a bad product. After all, they are well educated.
There are a lot of checks and balances involved. I should,
(31:33):
you know, feel comfortable with it. But they don't know.
They just don't know. Yeah, yeah, I wish they did.
I mean, I wish every financial advisor in Colorado would
call me and say how do you do what's going on?
Because it you know, it's just another tool for them
to work with retirement for their client.
Speaker 1 (31:53):
Yeah, and it's kind of interesting because it's actually advantageous
in my limited opinion, for them because then people aren't
taking their investments and cashing those out, So in a way,
it's a little symbiotic relationship there, it could be.
Speaker 2 (32:08):
Anyway, go ahead, No, I fully agree, I totally agree.
Speaker 1 (32:13):
Yeah, I was going to ask you too, So can
I go directly to my bank for this?
Speaker 2 (32:18):
Do I go through?
Speaker 1 (32:19):
Like you're a mortgage broker? So does that mean that
you're going to be shopping around for the best product
for me, best interest rates, all that if I come
to you for this?
Speaker 2 (32:30):
I'm not sure banks offer them. For a while, A
couple banks offered them, but then got out of the
mortgage business altogether. Okay, same, Yeah, you know, now banks
do internal loans. They like to do lines of credit seconds. Okay,
if you are a high net worth person in a
private banking scenario, they might offer something like that, But
(32:51):
just the average person coming in off the street, they
would try to move you or have you encourage you
to look at a line of credit through a second.
The difference between the two because the people say, well,
why don't I just go do that just right? Is
the line of credit with the bank requires a payment, yeah,
and to be turned off if the economy dictated that
(33:13):
they wanted to do that, So they have the control
to turn it off, and that a lot of people
experience that back in nine, ten and eleven where their
lines of credit were turned off overnight. So this loan
doesn't require a payment and cannot buy the contract it
currently be turned off. Now they can rewrite contracts or
rewrite the rules, but that's the way it stands right now.
(33:35):
So how are you going to find a reverse mortgage person?
You need to find a mortgage person. Okay, not all
mortgage people do reverse mortgages. I would definitely ask some
questions about that when I'm talking to people and kind
of vetting it. I mean, it's like, if you need
a heart surgeon, would you open up the Google buy
my best heart surgeon next to me and go to
(33:57):
the first to one. Probably not. You're probably going to
interview and talk and decide who's a good fit with
you personality wise, talk wise, comfort wise, and also expertise
it's exact same thing that needs to be done. And
looking for a reverse mortgage person or for that matter,
any mortgage person to be honest with you.
Speaker 1 (34:15):
True, yeah, very true. So I know you're licensed in Colorado.
Does that mean you can do this for people in
other states? What does that mean exactly? I can.
Speaker 2 (34:24):
I currently carry a license in California, Florida, Arizona, so
you bet people can call me. I've done loans in Arizona.
I have not done anything in Florida or California. A
couple of false starts, you might say, just wasn't the
right timing for the clients in both of those places.
And that's it. It is one hundred percent timing in
(34:45):
your needs. You know. You look at and I like
to make sure that people consider, well, what if I
do this now and I pass, how that's going to
affect my spouse, And what if I do this now
and I have a lot of medical stuff. Yeah, I
want to make sure. I don't want to wake up
in the middle of the night and have a panic
(35:05):
call from anybody. I'm want to know that they can
we both are sleeping well, oh for sure.
Speaker 1 (35:12):
And that's one of the things that I was really
impressed with with you because you are covering all those bases,
which is a caring kind of person that I like
doing business with. And I've been so excited about the
guests I've had on the show because I feel like,
for whatever reason, the people who are coming on the
show are who are attracted to the show, are also heartfelt,
(35:37):
you know, solid qualified, but also good people who weren't
selling products to sell products.
Speaker 2 (35:44):
So I just really appreciate that.
Speaker 1 (35:48):
There was another question that I was just going to
ask you, So.
Speaker 2 (35:52):
If you if you decide to sell.
Speaker 1 (35:56):
Your house and you have the reverse mortgage, you know,
I'm assuming that looks like just what I would think.
It looks like like that you sell the house and
that gets paid off. Is there anything more to it
than that?
Speaker 2 (36:11):
It's exactly how it happens, And that's true if you
would now you know, you inherit the home. It's a
part of your state. So it's true if you pass
away and you've given it to your children as a
state and so now they have to deal with it.
It is one you pay off the loan and you
either can keep it at that point, or you pay
off the loan and you move so a lot of
(36:32):
seniors get a reverse and then realize they want to
move closer to their children. Okay, thank you for varying reasons,
and so we will do that. We will take care
of paying off the current reverse mortgage and the money
that they have in between paying off that reverse, and
the equity in their home is now their equity. They
(36:54):
have it in a cash at closing kind of situation.
We'll take that and then look at home values where
they're wanting to move to and use that money to
use a reverse for a purchase. So they come back
in and they put a reverse on with a lump
sum to the house, and again they're back into no
no mortgage praayments, which is their choice. Wow, I saw
(37:18):
your curiosity about what is a reverse for purchase? Yeah? Interesting?
Speaker 1 (37:23):
Okay, And how does that impact your credit score? Does
it do anything to it if you're not all paying
on these loans that you have.
Speaker 2 (37:31):
Every poor I have, I mean, I've done dozens and
dozens of these things. I mean, you know, I won't
say millions because they have to be timing, but I've
never had anybody say that it affected their score. I
had one family that tragically lost their home in one
of the fires we had here in Colorado not that
long ago, and we are finally finishing up the reverse
(37:53):
and the buildout of that new home and paying off
the current reverse to get a new reverse on it
and take some of the equity out. They funded their
own rebuild of that home, and there's no effect on
the credit score at all to my knowledge. I mean,
I see their credit report. We do pull a credit report.
If you've been in bankruptcy within the last two years,
(38:14):
you'll probably want to put that, Lisa, that funny word
for an escrow one because they're concerned that Again, then
I want to own your house. I want to make
sure that the property taxes and the homeowers insurance are
pay and taken care of. And if you have an
h OOA usually that's on you. But you could put
all three of those into that Lisa. So I don't
think I don't think it affects it at all. Personally.
Speaker 1 (38:37):
Okay, this is great, This is so interesting, and I
feel like, you know, I hear all the time people
are so worried about, you know, their later years. I mean,
I was just talking to a girlfriend yesterday and she,
you know, was saying I don't own my home. I
don't have long term care. You know, I mean when
you don't own your home, this obviously doesn't apply. But
(38:59):
but yeah, assuming you do have a home, but all
other things, you know, being kind of similar in terms
of you know, either not having things or not having
enough money saved. This is a nice fallback in my mind, and.
Speaker 2 (39:14):
It is hitting is definitely I think probably the thing
that my generation, I assume your generation or behind me
and that generation that's coming up, is worried about am
I going to have enough money to make it to
the end. The end is thirty plus years after you
(39:35):
quote quit working a full time paycheck job. And in
many cases, sadly the answer may not. Maybe no, but
you have this house and you have equity, and we
talk about it is it's very hard to punch a
hole in the wall and pull the money out. The
only way you can do it is through a loan.
(39:57):
One loan requires that you make a payment. It's kind
of counterintuitive in some cases, and the other loan says, no,
you don't have to make a payment, and we'll give
you the money a certain amount of the money that's there.
So yeah, I find a product that people should really
look at at some point in their senior years. Yeah, yeah,
(40:18):
super interesting. I love this.
Speaker 1 (40:20):
I think this is fascinating. So tell people, if you will,
how people can get in touch with you and have
Is it okay to just get done with you and
have a conversation about this?
Speaker 2 (40:30):
Absolutely, Even if I'm not licensed in your state, It's
okay to call me and ask. I do have a
kind of internal referring business. I don't refer any money,
don't get any money to refer. But I have a
company that I've had good success with for referring out
to the states that I don't work with. They were
friends and they had their mothers live in those states,
(40:50):
so I got good feedback. Oh wow, I really feel
good about that in doing that referring if I need to,
But people can reach me on my telephone. You call me,
leave me a voice now, you can set up an
appointment to have a discovery call for lack of better words,
a cup of coffee conversation and we and we just
(41:11):
kind of go from there. So my phone number is
three oh three eight one seven four six one one,
and that's my cell you're going to get me. I
don't have any automatic people talking for me to get
my voice not says hey, I'll get back to you.
And of course you can always go out to my
website at Laura Phillips. It's my name dot com and
Phillips this with two l's.
Speaker 1 (41:32):
Okay, yeah, that's great. And actually I just found you
on LinkedIn, so you're there as well.
Speaker 2 (41:37):
Here, Yeah, I am on LinkedIn. Yeah, so about that. Thanks?
Speaker 1 (41:43):
Yeah, no, I just put a connection request out to you,
so thank you in advance if you would accept. Well,
so well, Laura, I think this has been fascinating and
I'm so glad to know more about it. And I
just feel like this is what empowers people, especially you know,
for women. I mean, it is a reality many of
(42:04):
us will you know, be alive after our partner is not,
and so yeah, or there are so many single women too,
owning homes and you know, I mean partners, you know aside,
this is a and this is also for men. I mean,
I don't know why I'm it's not the nineteen fifties anymore.
(42:25):
So that whole conversation about this being for older widows,
I don't know why I'm even having it right now,
but anyway, it's where my mind went. It's great for
whoever needs it, basically who owns a house. And I
think it's a great thing to add into the equation
when you're you know, I find when you are stressing
about how am I going to you know, live decently
(42:49):
or well or whatever you're wondering to yourself in your
older years, this is something else that can give you
some security and you know, an option.
Speaker 2 (42:59):
People are very relaxed when they finally get to the
closing and say, oh, you know, it's done. The money's
in my pocket now, so is sending it to the bank.
I don't have to ask my kids to help support
me in my later years. I mean, it's just such
a huge relief to people to consider it. It's a
good product.
Speaker 1 (43:18):
Okay, all right, well, Laura, I really appreciate you being here,
and I appreciate all your wisdom, and I love it
when people have, you know, done a job in an
area like you have for so many years. You've kind
of seen everything and you know, like you said, the good,
the bad, and the ugly. So it makes you a
really great person for people to talk to and to
(43:40):
get information and frankly get loans with.
Speaker 2 (43:42):
So thank you. I appreciate that great. Like I said,
even if I don't do alone in your state, I'm
happy to talk.
Speaker 1 (43:48):
So okay, all right, well, thank you, thank you, thank you,
thank you for your time and you're sharing all your
wisdom and audience, thank you. Thank you for joining us
on the Money and New show it when you watch
and or listen. So we are on all the podcast platforms.
We're on the Limit Free Life YouTube channel. And please
share this show with anybody who you think could use it.
(44:12):
Share with your parents, share with your friends. I think
there's a lot of really valuable information here and we
love it when you rate and review the show. And
you can reach me at Michelle at limitfreelife dot com.
Check out limitfreelife dot com and see some of the
offerings that we have in the information and there's a
lot of old blogs and a lot of old podcasts,
(44:33):
and so you can play there if you'd like for
a little bit.
Speaker 2 (44:36):
I would love that. All right, and Newbi and go.
Speaker 1 (44:39):
Thank you so much for all your help in producing
the show, and we'll see you next week.
Have you ever had a money or career question you
really wanted to ask, but didn't know who to go to,
or just felt uncomfortable even bringing it up. You're not alone.
Talking about money can feel intimidating, even scary, and that's
exactly what I'm trying to change. That's why I created
a free virtual coffee chat, a casual, no pressure, twenty
(00:21):
minute conversation where you can bring one thing you're wrestling
with and we'll talk it through. No judgment, no jargon,
no sales pitch, just clarity, ease, and a real answer
from someone who gets it. If you've got something on
your mind, don't sit in the confusion. Book a spot
at limitfreelife dot com and let sip.
Speaker 2 (00:40):
And sort it out.
Speaker 1 (00:42):
Hey there, and welcome to Money in You. I'm Michelle Perkins,
your host. My search for more fulfilling work led me
to career in business coaching, where I stumbled upon a
game changing discovery. Money issues often start with our mindset
and habits. You see, our relationship with money is the
key to becoming those frustrating financial obstacles. As an entrepreneur, coach,
(01:04):
and problem solver, I'm passionate about helping you create a
great relationship with money, because turns out that's the foundation
for limit free life. Each week on Money in You,
I speak with amazing guests about all things money, mindset,
practical tips, and everything in between. We're here to give
you new insights, education, and empowerment, so money can be
(01:25):
one of your favorite relationships. So join us for some
lively conversations and let's transform your financial life together. Hello, Hello,
and welcome to this episode of the Money and You Show.
I'm Michelle Perkins, your host, CEO and founder of Limit
Free Life, and I am really excited about our guests.
Speaker 2 (01:46):
Today.
Speaker 1 (01:47):
We're going to talk about some a topic you probably
don't hear a lot about on podcasts very often. We're
talking about reverse mortgages with an expert in the field,
and you know, here's a mindset for you. Sometimes when
we hear a topic, we can or like immediately attracted
to it, like I've got to hear about that. And
(02:08):
other times there are topics that maybe we haven't heard
much about or we have preconceived ideas about. For example,
reverse mortgage information is something that I'll worry about, you know,
in forty years, So I want you to think about that,
because the whole purpose of this show is to give
you a broad financial education, which is a huge step
(02:30):
toward financial well being, so that you can have this
like arsenal of ideas for the future, so whether it's
retirement planning or just you know, building this foundation of
knowledge so that as things come up in life, you
have information, You have the ideas that you can go
then learn more about or talk to somebody about. And
(02:50):
so I think it's really important even with the topics
that you may not have necessarily a huge interest.
Speaker 2 (02:58):
In right now.
Speaker 1 (02:58):
Maybe you're on the younger side and you think this
is for the future, Please listen in. Please just get
to know what's out there for you in the finance world,
because you never know when you might be more interested
in something, and if at least that seed has been planted,
you can go and draw from your wealth of information.
So I think this is going to be a really interesting show.
(03:19):
I actually can't wait because there's a lot that I
want to know about this particular topic. So without further ado,
I'm going to introduce Laura Phillips. Laura Phillips is a
licensed reverse mortgage specialist with over twenty five years of
experience in real estate lending, dedicated to guiding clients through
(03:40):
the HCM and reverse loan process to ensure they make
informed financial decisions for their futures. Serving all of Colorado,
she specializes in FH, HGCM and proprietary portfolio jumbo reverse loans,
helping our client enhance and preserve their retirement assets. Laura
(04:03):
believes that a home is more than just a house.
It's a significant financial commitment and she is committed to
helping families enjoy their best years in their homes. And Tony,
I'm excited for you to hear their show because you
are a new homeowner and this will be interesting.
Speaker 2 (04:19):
So welcome Laura. Well, thank you so much for having
me on boorn. Michelle, I'm really glad to be here.
I'm really glad that you are here. And let's start
out with what is h ECM. What does that stand?
Thank you?
Speaker 1 (04:31):
I could barely say it.
Speaker 2 (04:32):
Yeah, and it's pronounced heckham, which sounds like you're coughing
up something that you don't really want to cough up.
But it stands for home Equity Mortgage conversion.
Speaker 1 (04:45):
More interesting now, okay, great.
Speaker 2 (04:48):
So, and that's actually what it is. It's taking your
equity and converting it so that you can use it. It
is alone. I'm going to start there with it. Absolutely
is alone. It's not a Gary item any more than
any other loan that you do. Is to be honest
with you, I think it's misunderstood and there's a lot
(05:08):
of urban myth around it. So let's stay that. I've
been ask you some questions.
Speaker 1 (05:13):
Yeah, so I love this, and i'd love to know,
given your background, what drew you to this particular you
know area.
Speaker 2 (05:24):
I've been a mortgage lender for oh my god, over
thirty years, maybe even closer to forty because my daughter's
birthday was today. Oh she can grow up with me
doing it. So we're going to go forty now. And
I looked at the picture you had of me, and
I think I'm a little bit more gray now than
I was before.
Speaker 1 (05:40):
Okay, we all change our hair color. That's fine.
Speaker 2 (05:44):
So I got involved with this probably my first one
was about fifteen years ago, and it was kind of
just a fluke. Gentleman called and said he wanted to
do a reverse mortgage. I thought, Okay, I'll do that,
but I have to go read about how to do it.
And he wanted to do it because he wanted to
buy his wife a dream trip. She had been diagnosed
(06:05):
with a terminal illness and was still well enough to travel,
and he wanted to use his equity to give her
a gift that she would remember in those final days
when it wasn't so much fun. Gives me goosebumps to
this day to even think about it or talk about it.
But as I moved through life of being a reverse
well being a mortgage lender actually for about forty years,
(06:25):
I found that this is an under underserved and certainly
misunderstood product. And I can speak to seniors. I'm right
there with you, and I think that there's a comfort
zone for a lot of seniors to go, oh, this
person has been through the life changes with me in
(06:48):
some form or fashion and understands my concerns and fears. Now,
so it's easier to talk to seniors being a senior. Yeah, yeah,
I agree.
Speaker 1 (06:58):
But I also, you know, like I said the intro,
I think it's so what we don't know, you know,
that's a problem. And I think in the finance world,
it's so important to have more information than you need
in the moment. You know, just so that you can
draw from it at some point or at least remember, hey,
that's a thing, you know, maybe that would help me
(07:18):
at some later point. And I think it's it's very
interesting that I hear so little about this. And I
also will tell you my bias because I, unlike many
things in the financial world, I've not necessarily heard. I've
not necessarily heard a lot of negatives, honestly, but I've
also not heard a lot of positives or anything. So
(07:40):
you assume, well, this must not be the greatest way
to go. So how do you address that?
Speaker 2 (07:47):
Well, I think I think a lot of people don't
know about it, and a lot of financial advisors are
very hesitant to discuss it. So that is a lot
of white people don't know about it. And then if
they were to go to say their church, of their
friends and a social group and say hey, I'm thinking
about getting a reverse mortgage, the comment that they're going
(08:09):
to hear is oh my god, don't do that, or
oh you know, and they have some kind of war story,
and that scares the average person out there from even
taking their toe into to the subject and even learning
a little bit about it. So this is probably why
you don't hear a lot about it. I mean, we
all see Tom Selle, like on the TV selling reverse mortgages, right,
(08:32):
you know, and there have been lots of other celebrities
that have sold them over the years. But that's not
going to get you to really pick up the phone
and want to learn more about it, let's face it.
In fact, you might even be more skeptical because you
saw it on TV.
Speaker 1 (08:47):
That's true, That's very true. And I think that's the
big problem with the financial industry is there are some
great products out there and great options for people, but
there are also, you know, some rather poor ones, and
you know, some really shady ones, and so it becomes
very very difficult to trust. And so you know, that's
(09:07):
where I love that you're a mortgage broker for so long,
because you know, there's just a trust factor in that
as well. And I don't know, I don't know. There
are other things out there that I've had the same
reaction that you just described around things and you know,
twenty thirty years later, I'm sorry, I don't know more
(09:29):
about them. Yeah, you know, whole what they used to
call whole life was one of them. And when I
was first coming along. You know, people talk to me
about it, and it was expensive, and I didn't get it,
and it was never explained well, and so I just
you know, I spent my whole life really almost looking
for evidence that it was a bad thing because I
didn't have it, and I didn't and oftentimes now it's
(09:51):
it's sort of transformed a bit in there all kinds
of new versions, and I've had a number of people
come on the show and talk about life insurance options
that I never really gave it thought to. So that's
a mistake. You know, we want at least.
Speaker 2 (10:04):
Learn, absolutely, and it is a mistake to not at
least inquire. And I fully believe in educating any client
that comes to me and talks about reverse mortgages, whether
they do it or not, they're going to have a
good understanding and education of what it is and what
it can do. And I always talk about the good,
the bad, and the ugly ones. Might as well get
(10:24):
those elephants out in the room and let's talk about
them and see if they fit. If they absolutely fit.
So at the beginning, I mean, this loa's been out
since the Reagan era, so most of us remember President
Reagan and he and his administration was one of the
first to get this loan on the books and get
it into the federal HUT product. And it is a
(10:46):
federal program program. So but you know, there there was
a lot of not great thought into ramifications if we
did this or we did that. And I'm happy to
speak about some of the myths if you are.
Speaker 1 (11:00):
I would love to hear the miss I'd also just
like an overall description of what the heck it is listening.
Speaker 2 (11:07):
Absolutely, what the heck is a heck? I've often thought
about entitling that as a blog host. So what is
a reverse mortgage twelve? First of all, it's been out
in the United States since Reagan's erarand I guess I
should go back and actually look at the date of
his administration, so I'll just say that. And it was
(11:28):
designed the original one was designed to help a widow
who had five kids, husband had died and had no
way to live in the home and continue to raise
your children. But they had equity. They had equity in
the house. House must have been paid off or free
and clear at that point, I don't know. So a
savings loan came up with an internal program that would
(11:50):
allow her to tap the equity and she did not
have to make any payments if she didn't want to.
Now that's a plus and a minus that. The minus
to that is that the loan is going to grow,
the balance is going to grow. But this allowed her
to stay in the home and raise her children as
a single mother of five children. So that's how this
loan got started. It's in almost every I call us
(12:14):
the first world nations versus the developing world nations, so
it's in almost every country in some form or fashion
to help the seniors use their equity to allow them
to live a better life, whether it's to upgrade the
home and make it more comfortable, providing the ramps or
rab bars that you might need, or to just be
(12:35):
able to pay for medical care. So it is a
loan that allows you to tap your equity. You need
to be sixty two or older for the official HUT product.
If you have a higher loan balanced home or higher
value home, there is a proprietary loan that will allow
you to go to fifty five or younger. But let's
just talk about the main one. Because both of the
(12:58):
programs use the same guidelines. So you go in and
do a loan application, we do an appraisal. It's an
asset based loan, so we're going to be looking at
how much asset you have in your home value, and
then you're allowed to take a certain percentage out. So
right now, it's remember the old logarithm tables when you're
(13:19):
in high school, very similar or insurance things. We have
a chart and it is age and interest rate, and
so you go down to your age over the interest rate,
and that's going to show you how much. Literally it's
had the computer do it for us now, but the
old days of manual, that's exactly how we did it,
and that gives us how much equity you can tap
(13:42):
of your home. So you're not allowed to tap one
hundred percent. I think that's a misconception. When a lot
of people talk to me, it's like, oh, this is
all I get. You know, they're thinking that they can
take one hundred percent, and no, they don't want for
own protection. Really absolutely for their own protection. And that
number has gone down since the beginning of time to
(14:05):
about forty five percent or so for somebody who's sixty two,
and if you get up to ninety and I haven't
had a couple of ninety year old Jews. Then they're
getting close to the seventies of percent. And that is
to protect something. Nobody wants to own your home. You
want to own your home. You don't want to go
upside down. You don't want it to go into foreclosure
or on bankruptcy types of the situation. So that is
(14:26):
to protect the client. You bet, yeah, very interesting. So
you can borrow, you know, whatever percentage you're allowed to borrow.
And how does it work?
Speaker 1 (14:36):
So the qualifying you know, how does this work in
terms of accessing these.
Speaker 2 (14:42):
Well, it is still alone. So it's going to be
a loan process, just like you've done your whole life.
Whenever you did a refinance, you buy the house, you
did a loan. Very few people are lucky enough to
pay cash, and good for them that they can, but
most people end up getting alone. So you do a
loan application, you do have to take a class. This
is usually what defies most people. Oh my god, it's
(15:02):
like school again, and yes and no, that's true. The
class is offered by a third party HUD certified agency,
so they are all over the US there with both
your county and eight hundred numbers that you can call.
It is done by the telephone. It's about an hour. Law.
They want to make sure that you the senior and
(15:26):
it's hard to say that when you're sixty years old senior.
But understand that it is a negative amateurization loan, and
that's a scary term.
Speaker 1 (15:37):
Really.
Speaker 2 (15:37):
The reality is is, yes, the loan grows in balance
if you're not going to pay on it. You know,
banks don't lend money to for free, and they want
something back, and that's how banks make their money. So
this is designed that you do not know have to
make a payment if you don't wish to. It's the
only loan I know out there in my lending years
(15:59):
that would allow you to make a choice, make a payment,
make a partial payment, never make a payment. And then
but again, like I said, if you don't make the
interest payments then or balance payments either, then the loan
is going to grow. I haven't ever seen anybody say, oh,
I don't think I like that, particularly as they're aging.
(16:20):
Then most people at that point that talk to me
are on some kind of fixed income. They don't have
any other way of generating any additional income, and expenses
are getting harder as we get older. Basically there's more
medical costs that involved as we age, and they were
necessarily planning for it, so they're okay that they don't
(16:41):
have to make those payments. So once we've done this loan,
we get your class done, this little class that says, yes,
they understood what's going on. The only way you're going
to be able to lose the house is if you
don't pay your property taxes or you don't live in
and so those are the two biggest requirements that have
caused the home to be lost for lack of better words, foreclosure.
(17:02):
The bank takes it back once the client understands that
they've gone over all the details. Some agencies ask for
a budget, others don't, but that's really the whole situation.
Then we do the loan process, we get the loan information.
It's not a hard credit situation. We want to make
sure that you can afford to pay your property taxes
(17:22):
in your insurance, so we are looking at that. So
people social Security would cover one twelfth of that payment
each month if they didn't have to make other payments
out of their retirement funds. So that's what we're looking at.
And if you can make that, then we are able
to get an appraisal. We judge to see how much
you're remember the little chart, we're going to see how
(17:44):
you actually get. Then then we go to closing, so
the whole process. If it's a good year, no gremlins
are out there like Amazon going down today, closing got
a lot of things. Then we are able to close
the loan in six weeks, start to finish or less.
Speaker 1 (18:03):
Yeah, and then you're funded the full amount less.
Speaker 2 (18:07):
They are funded the amount that you're allowed. And now
if you have a mortgage against the property, we're going
to take that out of that portion that you're allowed.
So if you're allowed to have, say forty six percent,
and you have a loan balance, and we want to
make sure that we're paying off the loan balance, and
a good portion of cases, people are just happy that
they no longer have to make that anywhere from fifteen
(18:29):
hundred up mortgage payment because that's going back into their
pocket and the amount of relief and sigh when they
hear that and see that on paper and understand that
again they never have to make that payment, it's like, oh,
this is huge. Why don't more people do this? Why
don't people understand what this does, because it's a huge
(18:49):
it's a huge benefit.
Speaker 1 (18:51):
Yeah, yeah, that's very interesting. And so the negative amortization
is the idea that you know, in the normal loan,
you would be paying it down principle an interest, and
so that exact same thing is happening, but it's adding
to the loan.
Speaker 2 (19:05):
Correct, correct, Okay, And that has a lot of negative
thoughts because when we had arms out there, we had
the collapse of the industry back in nine and ten,
and also just the beginning armed products that came out,
they went into negative amateurization because of thoughts that didn't
(19:26):
think it through to make it a better product. So
this product, I said, product's been out for a long time.
There have been a lot of revisions, and I do
find it to be a kinder and gentler product than
it was in the beginning. So I'll tell a lot
of people it's not your grandmother's reverse, you know. Yeah,
I mean they thought about what happens to the spouse. Well,
in the early days, they didn't put these spouse, which
(19:48):
was usually the wife, onto the loan. So when the
loan when the husband died, at that point, she was
out on the street and you know again moments as
I say so, they have made it so that if
the spouse and you could have a spouse that's not
even sixty two years old and do a reverse mortgage,
(20:08):
there are protections out there now for the spouse that
were not put into the original loan product, which I
think helped it grow in its negative thoughts. Of course,
the other one was, and I touched on it briefly,
was people when we first gave these loans out back
in the day, we gave them seventy five to eighty
percent of their equity. That's a lot. Yeah, and if
(20:31):
you put negative amateurization on top of that, the house
was going to go upside down to the loan. Thus,
you know, the loan was more than the house was worth.
And the third thing was we didn't check to make
sure they could make the property taxes. So a lot
of people lost their homes because nobody checked to make
sure they had enough income coming in to make the
(20:52):
property taxes.
Speaker 1 (20:53):
Right right, very interesting, And so what happens in a
case where somebody lose a very long time and I've
never made a payment, and can you exceed with this
loan the equity or the I mean, can you go
as far as you can go with this and find
yourself can.
Speaker 2 (21:11):
And a lot of it depends on your age. So
if we're going to get a reverse mortgage when you're
sixty two years old and you live to be ninety,
because we are living longer, and that's we're having to
plan for another thirty years of quote retirement unquote, then yes,
you're probably going to see that house go upside down,
which means the house is worth less than the loan
(21:33):
and somewhere in your nineties. Absolutely, it's just basic math, right,
It really is just basic math. At that point. Most
of the homes that I have helped people with or
are loves with are looking at it in their early seventies.
And I'm not really predicting out a reverse an upside
(21:55):
down situation. And we can look at that on graphs.
When you work with me, I'm able to show you
lots of graphs and play what if we get on
we share my computer and we go what if the
interest rates go up? What if the interest rates go down?
What if I take more out of my home? I
have a line of credit, very popular product with the
reverse board, which what if I take out this much
(22:16):
each month and or each year. How does this affect
the loan and effect the value of my home? I
want to make sure people really understand what's going on.
Speaker 1 (22:26):
Right right, And you know, of course you could also
sit down with somebody and maybe they can't make a
full payment, but look at what a partial payment will do.
Speaker 2 (22:35):
I mean absolutely, and we can do that. We can
show interest payments, we can show paying off this line
of credit. It's most popular loan out there. There's there's
two options. A line of credit, which is probably mostly
familiar with from having gotten seconds on our homes exactly
the same way. It works exactly the same way, except
that it doesn't get turned off as it could and
(22:57):
did during the during the banking collapse back in nine
and ten. And the other one is a fixed rate.
I would say probably nationwide, I'm thinking of the number
off the top of my head, it's probably ninety five
percent of the loans are lines of credit. Because that
line of credit grows and its usage mount, so it
(23:18):
makes it quite popular, particularly if you don't need to
use it, and we can and again we play we
have models that the lenders have provided us that allow
us to show okay, well, this is how much your
line of credit is, and maybe you can't still make
interest only payments. That keeps your loan balance down right, Lots.
Speaker 1 (23:36):
Of different ways to look at that, you bet, And
I think if you have an expert like yourself looking
at it with somebody and all the options, that gives
you comfort.
Speaker 2 (23:46):
Too, because you couldn't have choice. I mean, choice is
always always a good thing.
Speaker 1 (23:50):
So if you, you know, and the person obviously can
take less if they want, I mean, if they're allowed
to take x amount, they can certainly take a look
certain amount if they prefer correct absolutely.
Speaker 2 (24:03):
In fact, in the changes that came out when President
Trump was in his first administration, they lowered how much
you could actually tap out of your home equity. So
that's down, as we said, we got a haircut. And
the other thing was is they wouldn't allow how much
you would allow to use the first year. So if
you are allowed two hundred thousand dollars, these are just
(24:25):
going to be numbers off the top of my head,
not real, then you might only be allowed to tap
fifty percent. It really is more like sixty five percent.
But I can do math really well at fifty percent. Yeah,
So fifty percent. The first year you would only allow
to begin after paying off any other closing costs, and
(24:45):
if you had a mortgage or not, you would only
get fifty percent of that money. The second year, you
would have the balance that you could use. Now again,
if you don't use it, it grows right right. Okay, wow,
very interesting. So let's talk about some of those myths,
some of the things that you hear out there from
people you work with that maybe are not true. Things. Well,
(25:08):
a lot of people say the bank owns your house,
and well, you know, the bank owns your house if
you think of it that way, from the very first
loan you ever got. That's not true. You are always
in title on your home. You own your home. It
is yours. It is a lean, it is a mortgage,
It is a lean against the home, and it does
not mean the bank owned your house. Of course, we've
(25:29):
talked about oh, you know the wife was out on
the streets. Well, we have that protection. So that's a
big one that I heard. I hear a lot or
how you know, they went into foreclosure somehow, and usually
if you delve into what was really going on, it
was probably that the person didn't pay his property taxes.
He forgot to pay them, so you're trying to remember
(25:51):
that now you're responsible for the property taxes. There's no
escrow account. You can get one. It's called Elisa, because
we have to have our own name for everything, Lisa,
which is alone equity set aside. I believe with all
that means, but I'm not sure that I've only seen
one Lisa used. I had a gentleman that required it
(26:13):
because he didn't want to keep track of remembering to
pay the taxes and insurance, and he asked for the
property taxes, and he keeps his own home owners insurance
up on his own. So those are kind of the
big ones. The other ones are there won't be any
equity left for my children, So that's a big concern.
If you want to leave your house to your kids,
(26:35):
your first mortgage is probably not a good choice. I
won't say not a good choice, but it may not
be the choice you want to think about, because it's
going to have a lean on it when your kids
inherit it, and they would have to pay that lean
off to be able to have the house. In some
way or another. They're going to have to go out
and get a loan of their own. So for those
that want have felt like they've always wanted to from
(26:58):
generation from generation to inherit the house from mom and
dad or grandma and grandpa, then this floan, let's really
talk about it. I think it's a conversation you need
to have with that reverse mortgage person to make sure
you understand what's going to happen.
Speaker 1 (27:14):
It's a really interesting question, you know, because what can
also happen is that the parent needs another place to
live if they're not going to keep the house, which
can actually be much more expensive, and so you know,
where does that money come from. I mean, it's a
kind of a bigger puzzle to sit down and go through.
(27:38):
That was my feeling that that must be one of
the big drawbacks is not being able to leave a
house free and clear. But I would imagine if somebody
has the house long enough though, that even with the
reverse mortgage, it may there still have some value if
the person were to inherit it or sell it or whatever.
Speaker 2 (27:59):
In most cases, I said, if you start out getting
a reverse mortgage in your sixties and you look again,
you live to the nineties, which is right now is
probably a realistic number for us, medicine is doing better
about keeping us alive, We're being healthier, you know, all
of those things. Then, yeah, that house is probably going
to be upside down. But if you do something later
on into your retirement years, A lot of people don't
(28:20):
retire at sixty two any longer. So I would say
there is value in the home, it's just not as much, right,
And that's why the haircut came, was to make sure
that like again, banks I've been lending for a long time,
that's the gray hair. The pigs don't want your house.
They're not in the house business. They're in the money
(28:43):
lending business, and so they don't want to take over
a bunch of four closed properties and they already had
a really bad experience once, so they're pretty sure they
don't want to do that.
Speaker 1 (28:53):
I'm going to say, when I watched the banks take
over not just houses but whole developments, you know, and things,
I honestly didn't understand. It seemed like a giant burden
for them and one that they couldn't really deal with.
So I was curious. Actually, that's an interesting point you
brought up. Did they learn like would they do it
that way again?
Speaker 2 (29:14):
I don't know. One would hope that we learned from
our mistakes, whether we are an organization or an individual,
Absolutely one would help. And one of the ways that
they found to help them them being the lenders, the
people behind the curtain, as I say, they have asked
or they didn't ask, but it was a decision that
(29:34):
had actually made in reviewing. How come we had so
many foreclosures? What was going on? Well, there's a whole
bunch over here in the early days that didn't have
enough money to pay their property taxes. Well, gosh, maybe
we never asked if they could. That's the aha moment
and the correction to the loan product. Same thing with
well if we gave them seventy five percent of their equity,
(29:58):
maybe that wasn't the best idea either. So this is
it is designed. It is actually a much kind of
product designed to protect the senior now and going forward,
so that it's not going to be such a headache
for them or their heirs.
Speaker 1 (30:14):
Yeah, yeah, okay, really interesting. And when you were saying
initially that like financial advisors might not be recommending this
or discussing it, well, why is that?
Speaker 2 (30:27):
Well, I think there are two things. One is not
knowing much about it. So and the other on was
in their early days. FIREA, I think I'm pronouncing that
correctly is their governance of how they can act. And
for a long time FIAREEA would not allow them to
talk about reverse mortgages. Their FIREA has since backtracked and
(30:50):
said no, that you can talk about it. And a
lot of it is because we as an industry have
to make sure the client is well educated. So that
education and the class coming from a certified hud councelor
helps say. I'm not trying to educate them. I mean,
I educate them so they can pass the class. Right,
(31:11):
that's my job to make sure that everybody's really comfortable
with what's going on. But the financial advisor is not
on the hook for saying maybe not having provided enough
education for the client. So I think a lot of
advisors are looking at it and saying, oh, this isn't
such a bad product. After all, they are well educated.
There are a lot of checks and balances involved. I should,
(31:33):
you know, feel comfortable with it. But they don't know.
They just don't know. Yeah, yeah, I wish they did.
I mean, I wish every financial advisor in Colorado would
call me and say how do you do what's going on?
Because it you know, it's just another tool for them
to work with retirement for their client.
Speaker 1 (31:53):
Yeah, and it's kind of interesting because it's actually advantageous
in my limited opinion, for them because then people aren't
taking their investments and cashing those out, So in a way,
it's a little symbiotic relationship there, it could be.
Speaker 2 (32:08):
Anyway, go ahead, No, I fully agree, I totally agree.
Speaker 1 (32:13):
Yeah, I was going to ask you too, So can
I go directly to my bank for this?
Speaker 2 (32:18):
Do I go through?
Speaker 1 (32:19):
Like you're a mortgage broker? So does that mean that
you're going to be shopping around for the best product
for me, best interest rates, all that if I come
to you for this?
Speaker 2 (32:30):
I'm not sure banks offer them. For a while, A
couple banks offered them, but then got out of the
mortgage business altogether. Okay, same, Yeah, you know, now banks
do internal loans. They like to do lines of credit seconds. Okay,
if you are a high net worth person in a
private banking scenario, they might offer something like that, But
(32:51):
just the average person coming in off the street, they
would try to move you or have you encourage you
to look at a line of credit through a second.
The difference between the two because the people say, well,
why don't I just go do that just right? Is
the line of credit with the bank requires a payment, yeah,
and to be turned off if the economy dictated that
(33:13):
they wanted to do that, So they have the control
to turn it off, and that a lot of people
experience that back in nine, ten and eleven where their
lines of credit were turned off overnight. So this loan
doesn't require a payment and cannot buy the contract it
currently be turned off. Now they can rewrite contracts or
rewrite the rules, but that's the way it stands right now.
(33:35):
So how are you going to find a reverse mortgage person?
You need to find a mortgage person. Okay, not all
mortgage people do reverse mortgages. I would definitely ask some
questions about that when I'm talking to people and kind
of vetting it. I mean, it's like, if you need
a heart surgeon, would you open up the Google buy
my best heart surgeon next to me and go to
(33:57):
the first to one. Probably not. You're probably going to
interview and talk and decide who's a good fit with
you personality wise, talk wise, comfort wise, and also expertise
it's exact same thing that needs to be done. And
looking for a reverse mortgage person or for that matter,
any mortgage person to be honest with you.
Speaker 1 (34:15):
True, yeah, very true. So I know you're licensed in Colorado.
Does that mean you can do this for people in
other states? What does that mean exactly? I can.
Speaker 2 (34:24):
I currently carry a license in California, Florida, Arizona, so
you bet people can call me. I've done loans in Arizona.
I have not done anything in Florida or California. A
couple of false starts, you might say, just wasn't the
right timing for the clients in both of those places.
And that's it. It is one hundred percent timing in
(34:45):
your needs. You know. You look at and I like
to make sure that people consider, well, what if I
do this now and I pass, how that's going to
affect my spouse, And what if I do this now
and I have a lot of medical stuff. Yeah, I
want to make sure. I don't want to wake up
in the middle of the night and have a panic
(35:05):
call from anybody. I'm want to know that they can
we both are sleeping well, oh for sure.
Speaker 1 (35:12):
And that's one of the things that I was really
impressed with with you because you are covering all those bases,
which is a caring kind of person that I like
doing business with. And I've been so excited about the
guests I've had on the show because I feel like,
for whatever reason, the people who are coming on the
show are who are attracted to the show, are also heartfelt,
(35:37):
you know, solid qualified, but also good people who weren't
selling products to sell products.
Speaker 2 (35:44):
So I just really appreciate that.
Speaker 1 (35:48):
There was another question that I was just going to
ask you, So.
Speaker 2 (35:52):
If you if you decide to sell.
Speaker 1 (35:56):
Your house and you have the reverse mortgage, you know,
I'm assuming that looks like just what I would think.
It looks like like that you sell the house and
that gets paid off. Is there anything more to it
than that?
Speaker 2 (36:11):
It's exactly how it happens, And that's true if you
would now you know, you inherit the home. It's a
part of your state. So it's true if you pass
away and you've given it to your children as a
state and so now they have to deal with it.
It is one you pay off the loan and you
either can keep it at that point, or you pay
off the loan and you move so a lot of
(36:32):
seniors get a reverse and then realize they want to
move closer to their children. Okay, thank you for varying reasons,
and so we will do that. We will take care
of paying off the current reverse mortgage and the money
that they have in between paying off that reverse, and
the equity in their home is now their equity. They
(36:54):
have it in a cash at closing kind of situation.
We'll take that and then look at home values where
they're wanting to move to and use that money to
use a reverse for a purchase. So they come back
in and they put a reverse on with a lump
sum to the house, and again they're back into no
no mortgage praayments, which is their choice. Wow, I saw
(37:18):
your curiosity about what is a reverse for purchase? Yeah? Interesting?
Speaker 1 (37:23):
Okay, And how does that impact your credit score? Does
it do anything to it if you're not all paying
on these loans that you have.
Speaker 2 (37:31):
Every poor I have, I mean, I've done dozens and
dozens of these things. I mean, you know, I won't
say millions because they have to be timing, but I've
never had anybody say that it affected their score. I
had one family that tragically lost their home in one
of the fires we had here in Colorado not that
long ago, and we are finally finishing up the reverse
(37:53):
and the buildout of that new home and paying off
the current reverse to get a new reverse on it
and take some of the equity out. They funded their
own rebuild of that home, and there's no effect on
the credit score at all to my knowledge. I mean,
I see their credit report. We do pull a credit report.
If you've been in bankruptcy within the last two years,
(38:14):
you'll probably want to put that, Lisa, that funny word
for an escrow one because they're concerned that Again, then
I want to own your house. I want to make
sure that the property taxes and the homeowers insurance are
pay and taken care of. And if you have an
h OOA usually that's on you. But you could put
all three of those into that Lisa. So I don't
think I don't think it affects it at all. Personally.
Speaker 1 (38:37):
Okay, this is great, This is so interesting, and I
feel like, you know, I hear all the time people
are so worried about, you know, their later years. I mean,
I was just talking to a girlfriend yesterday and she,
you know, was saying I don't own my home. I
don't have long term care. You know, I mean when
you don't own your home, this obviously doesn't apply. But
(38:59):
but yeah, assuming you do have a home, but all
other things, you know, being kind of similar in terms
of you know, either not having things or not having
enough money saved. This is a nice fallback in my mind, and.
Speaker 2 (39:14):
It is hitting is definitely I think probably the thing
that my generation, I assume your generation or behind me
and that generation that's coming up, is worried about am
I going to have enough money to make it to
the end. The end is thirty plus years after you
(39:35):
quote quit working a full time paycheck job. And in
many cases, sadly the answer may not. Maybe no, but
you have this house and you have equity, and we
talk about it is it's very hard to punch a
hole in the wall and pull the money out. The
only way you can do it is through a loan.
(39:57):
One loan requires that you make a payment. It's kind
of counterintuitive in some cases, and the other loan says, no,
you don't have to make a payment, and we'll give
you the money a certain amount of the money that's there.
So yeah, I find a product that people should really
look at at some point in their senior years. Yeah, yeah,
(40:18):
super interesting. I love this.
Speaker 1 (40:20):
I think this is fascinating. So tell people, if you will,
how people can get in touch with you and have
Is it okay to just get done with you and
have a conversation about this?
Speaker 2 (40:30):
Absolutely, Even if I'm not licensed in your state, It's
okay to call me and ask. I do have a
kind of internal referring business. I don't refer any money,
don't get any money to refer. But I have a
company that I've had good success with for referring out
to the states that I don't work with. They were
friends and they had their mothers live in those states,
(40:50):
so I got good feedback. Oh wow, I really feel
good about that in doing that referring if I need to,
But people can reach me on my telephone. You call me,
leave me a voice now, you can set up an
appointment to have a discovery call for lack of better words,
a cup of coffee conversation and we and we just
(41:11):
kind of go from there. So my phone number is
three oh three eight one seven four six one one,
and that's my cell you're going to get me. I
don't have any automatic people talking for me to get
my voice not says hey, I'll get back to you.
And of course you can always go out to my
website at Laura Phillips. It's my name dot com and
Phillips this with two l's.
Speaker 1 (41:32):
Okay, yeah, that's great. And actually I just found you
on LinkedIn, so you're there as well.
Speaker 2 (41:37):
Here, Yeah, I am on LinkedIn. Yeah, so about that. Thanks?
Speaker 1 (41:43):
Yeah, no, I just put a connection request out to you,
so thank you in advance if you would accept. Well,
so well, Laura, I think this has been fascinating and
I'm so glad to know more about it. And I
just feel like this is what empowers people, especially you know,
for women. I mean, it is a reality many of
(42:04):
us will you know, be alive after our partner is not,
and so yeah, or there are so many single women too,
owning homes and you know, I mean partners, you know aside,
this is a and this is also for men. I mean,
I don't know why I'm it's not the nineteen fifties anymore.
(42:25):
So that whole conversation about this being for older widows,
I don't know why I'm even having it right now,
but anyway, it's where my mind went. It's great for
whoever needs it, basically who owns a house. And I
think it's a great thing to add into the equation
when you're you know, I find when you are stressing
about how am I going to you know, live decently
(42:49):
or well or whatever you're wondering to yourself in your
older years, this is something else that can give you
some security and you know, an option.
Speaker 2 (42:59):
People are very relaxed when they finally get to the
closing and say, oh, you know, it's done. The money's
in my pocket now, so is sending it to the bank.
I don't have to ask my kids to help support
me in my later years. I mean, it's just such
a huge relief to people to consider it. It's a
good product.
Speaker 1 (43:18):
Okay, all right, well, Laura, I really appreciate you being here,
and I appreciate all your wisdom, and I love it
when people have, you know, done a job in an
area like you have for so many years. You've kind
of seen everything and you know, like you said, the good,
the bad, and the ugly. So it makes you a
really great person for people to talk to and to
(43:40):
get information and frankly get loans with.
Speaker 2 (43:42):
So thank you. I appreciate that great. Like I said,
even if I don't do alone in your state, I'm
happy to talk.
Speaker 1 (43:48):
So okay, all right, well, thank you, thank you, thank you,
thank you for your time and you're sharing all your
wisdom and audience, thank you. Thank you for joining us
on the Money and New show it when you watch
and or listen. So we are on all the podcast platforms.
We're on the Limit Free Life YouTube channel. And please
share this show with anybody who you think could use it.
(44:12):
Share with your parents, share with your friends. I think
there's a lot of really valuable information here and we
love it when you rate and review the show. And
you can reach me at Michelle at limitfreelife dot com.
Check out limitfreelife dot com and see some of the
offerings that we have in the information and there's a
lot of old blogs and a lot of old podcasts,
(44:33):
and so you can play there if you'd like for
a little bit.
Speaker 2 (44:36):
I would love that. All right, and Newbi and go.
Speaker 1 (44:39):
Thank you so much for all your help in producing
the show, and we'll see you next week.
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