Episode Transcript
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Speaker 1 (00:26):
Did you know that over a million Americans over sixty
are sitting on more than one hundred billion dollars in
untapped home equity, and many of them don't even realize
it could change their lives. So, whether you're caring for
an aging parent, approaching retirement yourself, or reapproaching the age
(00:48):
of sixty two plus yourself, or just wondering what a
reverse mortgage is all about? What does that really mean?
The good, the bad, and the ugly and a lot
of good. Today's show is for you. My guest, Tiffany Nieri,
is a mortgage expert and the voice behind Retirement Reimagined.
(01:09):
She's on a mission to clear the fog, challenge the myths,
and show you how your home can actually fund your freedom.
So let's get into it. Welcome Tiffany to Always Aigless.
Speaker 2 (01:21):
Thank you, Valerie.
Speaker 3 (01:23):
First time on an actual radio show, so I'm pretty excited.
Thank you so much.
Speaker 1 (01:27):
You're welcome. Yes, we are a real radio show here
on Kimmy t.
Speaker 2 (01:31):
Yeah.
Speaker 1 (01:32):
I love sharing all of our tips and tricks and
all the great things that people need to know about
living life Always ageless, and I know that that's your
passion as well. Slightly different side of things than what
I do. But that's why we wanted you on our
show today because we know that you have a passion
for seniors and for helping them in your own way,
(01:52):
and we want to hear about that. We want to
hear about some of the ways that you've actually helped people.
Because some of our listeners and viewers, because this will
be known as a video as well, they're going to
have a lot of questions and they may not ask them.
But I think, and I think you'll agree with this,
that a lot of times people don't know what to ask.
Speaker 2 (02:11):
Yes, and this is true.
Speaker 3 (02:13):
So I really like to start off with a true
fact that I have been.
Speaker 2 (02:19):
I have been in the.
Speaker 3 (02:20):
Loan business, real estate finance for thirty years and up
until about four years ago.
Speaker 2 (02:28):
Five years ago, I thought reverse mortgages were.
Speaker 3 (02:31):
Bad well, and they used to be, and they used
to be. They have since been rehabed. We like to
use their real estate term. They have definitely become very conservative,
even more conservative than some of my clients would like
them to be. But they have tightened up the restrictions
(02:54):
they are They are makes sense loan now. They want
to keep your equity they have noticed to have your
home back, the bank does not want your home. That
is a myth. And we're going to be busting a
few myths today because a lot of my clients that
are sixty two plus heard about the reverse mortgage.
Speaker 2 (03:16):
Back in the day, just like I did.
Speaker 3 (03:19):
And that just sticks with you unless you raise your
hand and ask some questions, or someone likes me like me,
comes on a radio show and says, hey, let's bust
the myths about reverse mortgages.
Speaker 2 (03:30):
And that's what we're going to do today.
Speaker 1 (03:32):
So you've been breathing real estate since childhood, I see,
and have originated loan since nineteen ninety seven. That's about
the same time that I did. So what drew you
specifically to serving older adults and reverse mortgages.
Speaker 3 (03:47):
Yes, So being in the finance world for this amount
of time, you I don't want to say burnout, but
you're talking about the same things that my fellow loan
officers are talking about. When you get in a group, well,
that gets exhausting and I wanted something new. I turned
I'm fifty two and about forty eight, I was getting
(04:08):
a little antsy and I came across my mentor Christina Harmshaika,
who is local to my area, thank goodness, I'm in California,
and she coaches people in the reverse world, people like
me as a loan officer and teaches us that they
are not your auntie's loan. But she also teaches us
(04:31):
the proper way to present them, speak about them, nurture
our clients because these loans are not boom boom boom
like a purchase you would do for a thirty.
Speaker 2 (04:41):
Five year old.
Speaker 3 (04:42):
They can take six months, and that's okay, that is okay.
Speaker 2 (04:48):
It's funny.
Speaker 3 (04:49):
My mom used to pray that I would have patients,
and now I'm doing a six month loan.
Speaker 2 (04:54):
I know.
Speaker 1 (04:54):
Boy, I never have patients except with my customers, that's
for sure.
Speaker 3 (04:58):
Yes, so you learn, but I find it very interesting.
I love the stories from my clients. I love hearing
about their history because they've got a lot of history.
You know, when you're working with someone that's maybe in
their eighties, that's some stories.
Speaker 2 (05:14):
Sixty two not so much that's only ten years older
than me.
Speaker 3 (05:17):
But my older clients, I love listening to them and
that we.
Speaker 2 (05:22):
Just sit on the phone for sometimes a little too long.
It goes into my next appointment.
Speaker 1 (05:26):
So give us your okay. So you start. So you
met this person, this lady, and you listen to her,
and that sparked something in you that you thought, this
is something I would like to do.
Speaker 2 (05:37):
Sparked something.
Speaker 3 (05:38):
Her story was she used to be a loan officer
and then she came across some information on the reverse
and she tells a very heartfelt story about her grandfather.
Speaker 2 (05:51):
And he's Hungarian.
Speaker 3 (05:53):
My family's Hungarian, so we kind of it all went together.
But he would have probably lived a very long, happy
life instead of passing away had anyone in the family
talked about reverse mortgages to him. Yes, And it's not
really my place to talk about her story, but it
(06:14):
is what drew me to it, and I just jumped
in with both feet. I paid for some training with her,
I got with her personally, and we do a Wednesday
chit chat with a bunch of loan officers all over
the US that help educate about reverse mortgages and have
a passion for it. So I am in good company.
Speaker 1 (06:37):
So this is something you felt that you had a
heart for.
Speaker 3 (06:40):
Oh, yes, absolutely, And it's very interesting and I don't
mind that. Sometimes you get critics not a problem because
it gives me an opportunity to educate, because a lot
of times the critics are just bringing what they knew
from the past, and that's okay, that's what they know.
So I feel like it's my job to again educate
(07:03):
bus the myths talk about options and tell stories about
people that it's helped.
Speaker 1 (07:10):
And this, like any other loan program or real estate program,
or any program for older adults where they should live,
how they should finance, what they should or shouldn't do. This,
like any of those other things, isn't for everybody, no,
but for some people, it literally can be a life saver.
Speaker 3 (07:33):
Life changing. Would you like me to go into a
story I just did, certainly tell us about it, all right.
This scal was referred to me by a real estate
agent who talked to a friend, who.
Speaker 2 (07:44):
Talked to a friend. And she was seven.
Speaker 3 (07:46):
She is seventy two, which does matter to my law
because it's all about age, property value, and of course
the market at the time, So age matters in my world.
And we talk about dying, and we talk about airs,
we talk about trust, We talked about things that maybe
somebody's uncomfortable with.
Speaker 2 (08:03):
When I spoke to her.
Speaker 3 (08:06):
She was very monotone, had no excitement in her world.
And my job is to ask questions. My job is
to dive in a little bit. No heirs house is
paid for worth one point seven She does not have
a cell phone, she does not go out.
Speaker 2 (08:22):
With her girlfriend.
Speaker 3 (08:23):
She can't afford lunch, she can't afford movies. She cannot
go anywhere and have fun. But she's sitting on a
home that her grandfather built that's worth one point seven million.
Like I mentioned before, this loan is extremely conservative, so conservative.
Speaker 2 (08:40):
She was like, oh gosh, that's that's enough, but I'm surprised.
That's all.
Speaker 3 (08:44):
We got her enough money to do some work around
the house, so she got all new decking. The house
was peeling paint everywhere, so we got this work done.
We gave her a little bit of cash up to
pay off her credit cards.
Speaker 2 (09:02):
She was She had a little chart. She would pay
off one credit.
Speaker 3 (09:08):
Card with another credit card just to go to the grocery,
just to get fuel, just to make ends meet. So
she was fifty thousand dollars in debt on her credit card, just.
Speaker 2 (09:20):
From trying to live.
Speaker 3 (09:22):
We got her enough money to do the repairs, pay
off her high interest credit cards. The home had no
loan on it, so to speak. Actually, I'm sorry. It
didn't have a helock that someone gave her a year prior,
at seventy one years old.
Speaker 2 (09:37):
Someone gave her a heelock, but she had no But
she had no first no, so she had.
Speaker 1 (09:45):
No primary So let's explain to our audience.
Speaker 2 (09:47):
What that means.
Speaker 3 (09:48):
So she did not have a primary loan on the
home like you would expect faha, conventional VA, not a
thirty year fixed mortgage. However, she had a line of credit,
which is very similar to a credit card. You get
X amount of money and you use it as you
need to and then the payment is based on what
you need. This was maxed out along with fifty thousand
(10:10):
dollars in credit cards. And it doesn't seem like a lot,
but when you're on fixed income, that is a lot,
very very stressful for her. She admitted to me after
a few chit chats that she was not sleeping. She
doesn't sleep, and to anybody, I don't it doesn't matter
(10:30):
your age. Sleeping is so important for your health. So
I'm thinking to myself, I can help this woman. I
can change her life. Absolutely, so on.
Speaker 2 (10:43):
And on.
Speaker 3 (10:44):
Got her an increase in her monthly income. So we
have what is called a ten years So she got
we started at seven hundred and fifty dollars a month
extra in her checking account. And she said, tip, I'm
seventy two years old. I think I want a thousand
dollars a month. I said, good for you. Good for you.
(11:06):
And it's not because the loan increases or anything from me,
but I want.
Speaker 2 (11:11):
This woman to live live.
Speaker 1 (11:14):
So let me interrupted this a second again for the
benefit of our listeners and our viewers. So what that
meant was she was going to receive a check or
a deposit in her bank account for one thousand dollars
a month. So you were going to pay off her
credit cards. You were going to give her money to
fix her deck so she could go outside, right, Yes,
(11:34):
and in addition to that, she was going to receive
one thousand dollars a month that she could spend on
food and so forth.
Speaker 3 (11:42):
Yes, and this is going to help her obviously live
her best life. But the kicker in all of this
is my favorite part of It's called a heck of
home equity conversion mortgage, also known in the layman's terms,
as a reverse mortgage. So we got her a line
of credit. And this is not the line of credit
(12:04):
that you go to the big box bank and get.
Speaker 2 (12:06):
This is not one of those.
Speaker 3 (12:09):
This is under the umbrella of hud FAHA government backed loan.
Speaker 2 (12:14):
The line of credit.
Speaker 3 (12:15):
For instance, Let's say you get one hundred thousand dollars
in the line of credit. It has a growth factor,
and the growth factor is typically a half a percent
higher than the actual interest rate for that month. What
that means, Let's assume the interest rate is six and
a half percent, okay, so the line of credit growth
(12:38):
would be a half a percent higher than that seven
So on one hundred thousand dollars in a year, if everything,
of course, stayed the same, you would have one hundred
and seven thousand dollars available to you of liquid equity.
Liquidity means you could take it out very easily. It
(12:58):
is not stuck in your home one hundred thousand dollars.
Is that what you just said?
Speaker 2 (13:03):
Yes, okay, And I'm just giving an example.
Speaker 3 (13:06):
This gal got a little bit more than that because
she could, of course, now the idea behind the line
of credit. Strategically, the longer you leave it there, the
more access to your equity you have, it grows.
Speaker 2 (13:21):
It's fantastic.
Speaker 3 (13:23):
It is a very strategic move that my financial advisors
absolutely love. But I don't want to get too deep
just yet. The line of credit is there for her
later on, later on when maybe.
Speaker 2 (13:38):
Some repairs become due.
Speaker 3 (13:40):
Or she needs some kind of She had a to
story house and she wasn't moving, so she's going to
have to make this home friendly in the event that
she no longer can go upstairs, or she needs to
adjust it to her living standards as she ages. And
that's fantastic because she has the ability to do that
(14:02):
in two days. They say they have up to five
days to put in your checking account, but it takes
about two days and you go online or you call
them or you fax them, and the money ends up
in your account.
Speaker 2 (14:13):
Just magine. So she is.
Speaker 3 (14:19):
Number one two weeks into the lung she was already
sleeping better. Yes, of course, and this made me feel
better because now her health is going to improve.
Speaker 2 (14:29):
Yes.
Speaker 3 (14:32):
So not only did we give her a fun life
with her girlfriends, we gave her health benefits. She raised
her hand and she was she was done living the
life she was currently living. And someone gave her an
opportunity to raise her hand. Someone gave her an out,
(14:52):
so to speak, and she took it. And I'm very
very proud of her, and she is. I check in
with her every other month or so and see how
she's doing.
Speaker 1 (15:05):
That's a great story and just one of many. And
we have to we have can help. But think about
how many other people are there out there listening to
us today and watching us who either are in that
situation or who knows somebody who is, or knows somebody
(15:26):
who's about to be.
Speaker 3 (15:29):
Yes, a spouse, the way, we'll leave you in a
very bad position because you're going to be losing income.
And some may say, oh, just sell the house. Well, sure,
sometimes that is not the answer.
Speaker 1 (15:45):
And I think one of the saddest things I hear
and see is when a spouse passes away and someone
gets the advice you need to sell your house, and
the realtor goes there says, oh, you need to sell
your house right now. First of all, maybe they don't.
(16:07):
Number two, maybe they don't want to. And number three
is maybe it's not the best time. Maybe if they
held on a little while, they could sell it for
more money, or maybe if they made a few repairs,
they could stay there, or they could sell it for
more money. And one of the things I think, and
I'm sure you'll agree, Tiffany, one of the things I
(16:29):
think is the saddest thing is when people don't know
their options.
Speaker 2 (16:34):
Options. You just said the key word. I'm a huge
fan of options.
Speaker 3 (16:38):
Whether or not I'm buying mayonnaise or I'm buying a car,
I need options.
Speaker 2 (16:43):
Yes, I don't want end to buy all one thing. No.
Speaker 1 (16:47):
And I was asked recently on an interview, a TV interview,
and the gentleman asked me, so what do you want
your if you could have for your superpower, what would
your superpower be? And my answer was, my superpower would
be to give people options and to protect them.
Speaker 3 (17:05):
Right.
Speaker 1 (17:06):
And I'm sure you feel the same way. Listening to
you and what I know about you, I believe that
you're the same way that you.
Speaker 2 (17:12):
Just the story you told us, it's.
Speaker 1 (17:14):
An amazing story of someone else would have said, oh,
you should sell the house because and then they would say,
because look at all the money you're going to get,
and you can take that money and live off that,
which she could, but.
Speaker 2 (17:29):
Maybe she didn't want to leave that house.
Speaker 3 (17:32):
And this house was actually very emotional for her because
her grandfather had built it. So she has no plans
on leaving. So we checked off the boxes that she wanted.
She gave me her wish list, We got them all.
Speaker 1 (17:47):
That's pretty impressive. So tell us, Tiffany, give us your
sixty second explainer.
Speaker 2 (17:53):
What is a reverse mortgage? What is it not?
Speaker 1 (17:57):
And bust the top myth that you're the most often.
Speaker 2 (18:01):
Okay, so there's book reverse. There you go, and I
am going.
Speaker 3 (18:06):
To read the functional definition of a reverse because there's
two paragraphs about what a reverse is and then there's
a functional definition.
Speaker 1 (18:16):
All right, ladies and gentlemen, you're hearing it here and
always ages from Tiffany.
Speaker 3 (18:21):
A federally insured loan. This is insured from HUT all right,
loan product that allows homeowners age sixty two or older
to access a portion of their home equity in cash,
monthly payments or a growing line of credit options options.
With this particular type of loan, it's very customizable and
(18:46):
it's really fun my side to go, Okay, what do.
Speaker 2 (18:50):
We need to do?
Speaker 3 (18:51):
And I'm back here on my little computer customizing it.
And then I'm giving a proposal and they're going, oh,
this is great, But we just remembered that we want
to do the bathroom at our kids house because when
we stay there, we don't want to get into.
Speaker 2 (19:04):
The bathtub right It's unsafe for us.
Speaker 3 (19:08):
So we want to help our daughter remodel her bathroom
so that we stay with her it doesn't feel uncomfortable
for us. And you can do that, and that's fantastic
to me. It opens up all kinds of possibilities. So
the number one myth, Oh, the bank owns my home. Yes,
(19:29):
I think that's true.
Speaker 2 (19:31):
I've heard that so often.
Speaker 3 (19:33):
Well, I have a traditional law right now because I
am not sixty two yet, and the bank owns a
portion of my home because I owe them and I
owe the other half. So every time that you get
a loan, it is collateral. However, you are still untitle.
You can refinance, you can sell, you can do anything
(19:54):
you want with your home, so long as you pay
your taxes and insurance.
Speaker 1 (20:00):
Yes, yes, and there's so much more, And I want
to go to. Your podcast is called Retirement Reimagine. It
aims to flip the script on senior living. What script
needs flipping the mouse when it comes to housing and
finances over.
Speaker 2 (20:14):
Sixty Oh gosh.
Speaker 3 (20:16):
Well, I have talked to people when they retire, they
sleep all day.
Speaker 2 (20:22):
I talked to two gentlemen.
Speaker 3 (20:24):
One was sixty seven, one was seventy four, and they
retired in the past six months, let's say, because all right,
and I said, so, what are you doing with your day?
Speaker 2 (20:36):
Oh? I sleep until noon. And that's in my mind.
Speaker 3 (20:43):
I would want him being out doing the things he
never got to do, fixing the car that's in.
Speaker 2 (20:49):
His garage that he's always wanted to fix.
Speaker 3 (20:52):
So I want to give options for people, or I
want to give safety features. I had a police detective
on talking about fraud.
Speaker 2 (21:01):
So we give people options.
Speaker 3 (21:04):
Maybe they want to be a Ham radio operator at
their local police station.
Speaker 2 (21:09):
My husband is on that group, but he's with a lot.
Speaker 3 (21:12):
Of people sixty two plus in this little group and
they tinker with their little Ham radios because ham radios
are back in the day.
Speaker 2 (21:21):
I don't know if you know what a ham radio is.
Speaker 1 (21:24):
I do, Actually I do. My brother was a Ham
radio operator.
Speaker 3 (21:30):
Yes, and a lot of people that are maybe over
seventy know what ham radio is. I'm a Ham radio licensee.
My license plate says my call sign. But it's yes, it's.
Speaker 2 (21:44):
Calling I remember that. Yes, Yes.
Speaker 3 (21:47):
So the idea behind my podcast is to talk about
things that maybe need to be brought to the forefront.
Hell had we had an owner of AGA Studio on
the other day talking about eating healthy, breathing, breathing. Do
you know so many people take tiny little short breasts
(22:10):
from up here and not down here?
Speaker 2 (22:12):
Not they're abdomen.
Speaker 1 (22:13):
Yes, and I'm and you know well out where you live,
you know, in Lomolinda University. Also there's a section on
the blue zones, right, blue zones.
Speaker 2 (22:25):
An agent.
Speaker 1 (22:25):
There's a gentleman that has a site called Living Eating
to one hundred, which is great. But Tiffany, I want
to ask you this is I think an incredible testimony
that you talk about and experience you had with your
own father that he was a real estate veteran and
he went from a reverse mord skeptic to an advocate.
(22:48):
What changed his mind?
Speaker 3 (22:50):
Well, my dad, we he sits across from me and
I talk about reverses all day long. So my dad
is not in the category where he quote needs a reverse.
There are clients that need a reverse. He's more of
a strategic user of the reverse, because my dad likes
(23:13):
to stay very mentally active and physically active. He buys
homes in Mexico, and when you buy a home in
Mexico takes a good year year and a half. Well,
he was using his line of credit. Well, he's on
fixed income, so he had a payment on this line
(23:33):
of credit every month, but he didn't own the property
going along with it.
Speaker 2 (23:37):
So he was out all of this money for a year,
year and a half.
Speaker 3 (23:42):
Doing what he really likes to do, just for fun.
But why not make it better? So he's hearing me
talk and he sits me down. He goes, I think
I need one of those lines of credit, He said,
you think my dad did not want to put a
loan on his house because of my sister and I.
(24:06):
He did not want to. He did not want to
dive into our inheritance.
Speaker 1 (24:14):
And a lot of people feel that way, don't they.
Speaker 3 (24:17):
Yes, And I watched my dad work very hard, my
whole life very hard. Back when we were kids, there
were no cell phones, so my dad couldn't just run
to my softball game because he'd miss a phone call.
That's on his desk phone attached to the wall. And
that's what pays our bills. Is that phone ringing?
Speaker 2 (24:39):
Yeah, so that's true. And I watched him.
Speaker 3 (24:43):
I'm sure he wanted to be at my softball game
because I was pretty good, So why wouldn't you want
to be there? So I saw him work extremely hard.
So I want my mom and my dad to live
their best life. Right now, they're in Cavo, they come
home for three days and then they go to Miami Beach.
Speaker 1 (25:03):
Oh, have fun?
Speaker 2 (25:04):
Yeah why not? Why not?
Speaker 1 (25:07):
And they were able to do this because of the
reverse mortgage.
Speaker 2 (25:11):
Well, the Mexico situation. Let me get back to that.
Speaker 3 (25:15):
So now he's using his line of credit to buy
the property. When he sells the property, he pays the
line of credit back, right because that whole year there's
no payment, there's no payment, So he's not dieving into
his fixed income to try to do his hobby.
Speaker 2 (25:34):
Of course.
Speaker 3 (25:36):
Yeah, so it's very strategic for him, and he and
I both in real estate. He's been in real estate
since sixty nine, very long time. He was licensed when
he was eighteen years old. And again we were both
of the same mindset.
Speaker 2 (25:52):
But now we are converted.
Speaker 3 (25:54):
We understand the new and improved reverse mortgage, and we
are using it to better our lives.
Speaker 2 (26:01):
When I turn.
Speaker 3 (26:01):
Sixty two, I'm putting one on my home one hundred percent.
The line of credit will see.
Speaker 1 (26:09):
The person who actually got me started with my radio
show was a gentleman who had a show every Friday afternoon.
Speaker 2 (26:14):
You may have known.
Speaker 1 (26:15):
His name is Jay Kaplan. And Jay said everybody should
have them, whether you need it or not. So we
haven't done it yet, but certainly I keep thinking that
in the back of my mind. So Tiffany, A lot
of times we hear that everybody's not a good candidate,
and I have so many questions for you. Everybody's not
a good candidate for this, So who is and who isn't?
Speaker 3 (26:35):
All right, let's talk about who is not? Somebody that's
getting ready to move in the next two years. This
loan is not free, and that is one of the myths.
It's not a myth because the loan does have a
cost to it, and that is one of the questions
that I always get, or a comment, oh, it's so expensive.
Speaker 2 (26:59):
It's pretty price. See if you're not going to keep
it over two years.
Speaker 3 (27:02):
The longer you keep it, obviously, the less amount of
cost it is. But it does have a mortgage insurance premium.
So again, if you're moving in two years, not a fit.
If you're going to be three plus possibly now, if
you need short term money, we have other options for
that under the umbrella of reverse, but not on the
(27:25):
heck'm that we're talking about right now. Again options, So
person that's going to be moving, someone that is possibly
maybe we have to be over sixty You have to
be over sixty two. You have to be over sixty two,
and sixty two again is very young. That loan will
(27:48):
be extremely conservative. You'd be surprised. Rarely do they let
you borrow even fifty percent of the value of your home.
Speaker 2 (27:57):
Rare.
Speaker 3 (27:58):
You need to be up in the eighties, up in
the eighties and have a very good market for that.
So they're only going to let you do I'd give
you an example, all right.
Speaker 2 (28:12):
I'll use my dad because he has given me permission.
Speaker 3 (28:18):
Estimated property value eight hundred thousand at the time. He's
seventy five years old, all right, all right, they are
only going to allow him to tap into three hundred
and forty five thousand dollars of his eight hundred at
seventy five years old. That leaves quite a bit of equity,
(28:44):
doesn't it four hundred and some change of equity. The
bank is not here to take your equity. It is
here to allow you options for living your best life.
If maybe your retirement isn't as you thought it might be,
or inflation little hitting a little bit harder, or you
lost a spouse, those are the people that actually need it.
(29:07):
Losing a spouse wanting to No, let's stay on that.
It's not good for You're right, we should stay on task.
Speaker 2 (29:17):
Again.
Speaker 3 (29:17):
I could talk about this all day long. I love
this loan, and I'm right.
Speaker 2 (29:21):
Oh, that's why you're on. Okay, who else?
Speaker 3 (29:31):
Sometimes if you have a spouse, let's say you're sixty
two but your spouse is only fifty nine, they are
going to lower the amount of money that you get.
The spouse could still go as a non borrowing spouse
and stay stay in the home, but you're going to
get less money. So we might want to wait until
everybody's sixty two. So sometimes age is something that we
(29:55):
wait for. So those are the big ones that we
kind of say might not be a fit.
Speaker 2 (30:04):
If the house has two stories, the driveway.
Speaker 3 (30:07):
Is a forty five degree angle, you can't get your
trash cans, your bedroom is upstairs, kitchen is downstairs, No
downstairs bedroom. This might be something we need to dive into,
and we ask about the home. Do you love the home?
Is it conducive to aging in place? Can you see
yourself being there and being able to utilize the whole house.
Speaker 2 (30:30):
I've had clients that only stay downstairs.
Speaker 3 (30:32):
They have a been upstairs in three years.
Speaker 1 (30:35):
All right, so let me ask you a question. So
why would someone Let's talk about a surviving spas situation.
So there's something that's called a non borrowing spouse and
airs what protections exist today and what happens to the
home when the borrower passes.
Speaker 3 (30:57):
All right, let's say we're getting really deep here on
the non borrowing spouse. Okay, non borrowing spouse is able
to live in the home until they pass or vacate
the home after the main borrower passes away.
Speaker 2 (31:12):
We can dive into that.
Speaker 3 (31:12):
If that's something you guys have, that would be someone
under sixty two.
Speaker 1 (31:17):
So let's just be sure we define that again for
the benefit of our viewers and our listeners. What is
a non borrowing spouse?
Speaker 3 (31:25):
Define that spouse is someone under sixty two.
Speaker 2 (31:29):
Who was married.
Speaker 1 (31:30):
So I'm I'm I'm seventy and my spouse is sixty one.
I passed, so they could not be on the loan.
Speaker 2 (31:41):
Is that correct?
Speaker 3 (31:42):
They're they're they're on title. They have access to the home.
They are not going to be kicked out. They have
access to the home, but they do not have access
to any line of credit funds. Okay, So now I'm
passimate because they're not on the loan.
Speaker 1 (32:00):
Okay, So I pass away and my spouse is sixty one,
fifty nine or whatever, So what happens to them?
Speaker 3 (32:07):
They can stay in the home business as usual. However,
they have to keep up on taxes and insurance. But
if there was a line of credit or any funds
being deposited each month, those freeze.
Speaker 1 (32:23):
But if they had the kind of loan that it
just had no mortgage payments, then they can stay there. Yes,
And the reason they get to stay there is because
they were on the loan when it was originated. Correct,
So what Let's let me ask a question. What So
I'm I have a reverse mortgage and now I marry someone,
(32:48):
So now what happens and I pass away?
Speaker 3 (32:51):
Now it happened that one they are not covered you
must be married at the time you do the loan
for the non borrowing spouse to take effect.
Speaker 2 (32:59):
All right.
Speaker 1 (33:00):
So if I marry someone after I originated the loan
and I pass away, then they have to do something
with it. They have to pay it off, do something else.
Speaker 3 (33:10):
They can refinance into their name under the umbrella of
reverse if they are sixty two plus, okay, which is
traditionally what someone would do, all right.
Speaker 2 (33:19):
Or they can sell the home if they're not.
Speaker 3 (33:21):
If they don't want to be there anymore, maybe they
can refinance to a traditional loan if.
Speaker 2 (33:27):
They wanted to.
Speaker 1 (33:29):
Yeah, all right. So now let's talk about airs. So
my mom and dad have a reverse mortgage, they or
one of them passes away. Now what happens to me
as their child? What can I do with that property?
You can?
Speaker 3 (33:43):
Number one, You cannot just move in, you I can.
You cannot just move in. This loan is attached to
the two borrowers that qualified.
Speaker 2 (33:54):
Okay, you cannot move in and just live red free.
Speaker 3 (33:57):
Oh yeah, so you must refinance. If you own the
property from maybe being in the trust and the property
passed directly to you. Now you now own the property,
you can do a refinance if you are not the
heir that owns the property basedupon whatever documentation is listed,
(34:21):
the the option is to purchase it or to sell it.
So it depends really where you are as an heir
if the property got passed out to you. Refinancing is
ideal if it's a property you'd like to keep, and
if you're the only rule that just refinance into another reverse.
Speaker 1 (34:42):
If I'm old enough, But isn't there some rule about
if I'm the air about I can I can buy
the loan for some amount less than what it is
or less than what.
Speaker 2 (34:56):
It is worth, less than a praise about you.
Speaker 1 (35:00):
Okay, so I'm sorry, tell us again, I may.
Speaker 3 (35:02):
Have interrupted you five percent less than a praise value
and huggles, and you'll get a hut appraiser out there.
Speaker 1 (35:12):
So I can buy it for less than the appraise value.
But what happens to that existing reverse mortgage?
Speaker 2 (35:21):
You have to pay it off.
Speaker 3 (35:23):
It must be paid off upon death or vacating the home.
Speaker 1 (35:29):
Okay, so we pay it off. But then I can
buy the house for less than.
Speaker 3 (35:33):
The appraise under certain circumstances, and the servicer will go
over that with you. When your family members pass and
they had to reverse. Your first step is to call
the servicer. I send this book to my clothes clients.
I put my card on the back and I put
call me. And then I have my clients put their
(35:55):
first mortgage statement in here. Oh, so that they know
who the servicer is.
Speaker 1 (36:02):
Okay, so let's just explain. Make sure everybody knows what
servicer means. The servicer is.
Speaker 3 (36:08):
The person that you make the check to, the person
you're making your payment to. If you have a house
right now, you're making a payment on your loan, that
person is called your servicer. Some people call it the bank,
some call it the lender. They are servicing your loan,
and there's always an eight.
Speaker 2 (36:24):
Hundred number to call.
Speaker 3 (36:25):
Uh. That is who you call and say, I'm sorry,
but so and so passed this is our plan? Or
do I have some options? And yes, there are some options?
Speaker 2 (36:36):
All right?
Speaker 1 (36:37):
So this is so if you're if the company you
make your payment to changes, then it's obviously the current one.
It's not the one who you funded your loan through.
It's not your original loan officer. Always, it's who you're
making your payments to at that time, right, Yes, and a.
Speaker 2 (36:50):
Lot of reverses. They don't.
Speaker 3 (36:52):
They don't change like a traditional purchase, Like you know,
I give somebody that's thirty five a home loan through
ABC com Company, that ABC Company may not be their
service er in six months.
Speaker 2 (37:04):
Yeah, or six years or whatever.
Speaker 1 (37:06):
So we know, we've heard that counseling is required before
a REPS word can be given, and that's something that's
not typical with all mortgage loans. So let's tell our
audience counseling is that what can they expect and what
do they need to have ready before they go into
(37:26):
that counseling session.
Speaker 3 (37:28):
Counseling is a check and balance to make sure I
have done my job and to that said, yes, and
to possibly alleviate any fraud maybe from a family member
or something like that on the back end who's being coerced.
We don't want our seniors being coerced into this loan, No,
(37:49):
we don't. So we have checks and balances. The counseling
looks at the proposal that I provide. They have access
to all the paperwork that I've provided to the.
Speaker 2 (38:00):
Client, and they discuss that.
Speaker 3 (38:03):
Plus they discuss their income and debts, and they do
their own little numbers and go, okay, it looks like
you are you know, good to go or wooh, you're
right there.
Speaker 2 (38:15):
Your home's really going to need to appraise. And we
talk about all of that.
Speaker 3 (38:19):
Obviously, I'm talking to my clients for hours before they
even go into their counseling.
Speaker 2 (38:22):
But I like counseling.
Speaker 3 (38:24):
And this is one of the new items that is
with the reverse counseling. Is it must it's done over
the phone, and it's done by a HUD counselor.
Speaker 1 (38:34):
All right, So it's just in over the phone situation,
and they and they just want to make sure that
the people understand what they're getting into.
Speaker 3 (38:44):
So make you sit down with a HUD counselor. California,
most states are on the phone now.
Speaker 1 (38:51):
Right right for convenience of course, yes, all right, so
that's important that they know what they're getting into.
Speaker 2 (38:56):
Yeah, and all of the things is that they.
Speaker 1 (38:58):
Have, Yeah, that they talk to somebody beside the lone originator.
Because we like to think that everybody who does what
you do and what I do are helpful and honest
and care more about the client than themselves.
Speaker 2 (39:11):
But this is just a good opportunity.
Speaker 3 (39:14):
Yes, go through with them and family members can sit on.
They just have to announce themselves if they want to
learn and help them.
Speaker 1 (39:22):
Yeah, sure, Okay. Let's talk about something else that I
think most people don't really even know about and I
think is an amazing tool. Is the reverse for purchase.
Speaker 3 (39:34):
Oh so, yes, you could buy a house under the
umbrella of reverse. And this is what our sixty two
plus clients need to know because sometimes they want to
move but they don't know how to do it. They've
got equity, but where they want to go, they can't
(39:56):
pay cash, like, oh, gosh, I'm going to get a loan.
Speaker 2 (40:02):
I'm eighty two. I don't want a loan.
Speaker 1 (40:05):
Well, or they can't qualify.
Speaker 3 (40:07):
Or they can't qualify because we're on fixed income right
and our rates are a little bit you know what
people would say, Hi, I've been in it long enough
where we had a party when the interest rates hit
nine point nine to nine because they were in single
digits instead of double So I love a good six
percent interest rate. Again, it's all relative. Yes, the purchase.
(40:33):
A lot of my real estate agent partners don't even
know you can do this, and again it's my job
to get the world word out. But the purchase is fantastic.
So let's say, for instance, you sell your current home
and you get five hundred thousand dollars cash in hand.
All right, Well, gosh, I want to go move to
San Diego where my daughter is, and a condo is
(40:55):
eight hundred thousand. I don't want a three hundred thousand
dollars loan, plus I won't qualify.
Speaker 2 (41:01):
So what do I do?
Speaker 3 (41:02):
Well, Thankfully, Valerie, my real estate agent knows the reverse
options and says, hey, I have a gal that you
should talk to. She's got options for you, and this
may be the answer to your prayers. So we talk
about it, and the client was able to put at
(41:23):
the time.
Speaker 2 (41:25):
Four hundred thousand dollars down.
Speaker 3 (41:28):
Right now, it's probably five hundred thousand, just because our
market changed a little.
Speaker 2 (41:31):
Bit and you put significant down.
Speaker 3 (41:34):
By the way, these loans are all equity driven significant down.
So let's say, for instance, you are seventy, you're most
likely on an eight hundred thousand dollars condo. You're most
likely putting about six hundred thousand down. Okay, because the
loan is going to cover two hundred thousand. Maybe a
(41:55):
little bit different. Right now, rates have gotten a little
bit better getting a loan for two hundred thousand under
the umbrella of reverse, so you don't have a mortgage payment,
you have taxes, insurance, and hoa homeowners association which you
can handle. We've done your ratios, we know you know
you're comfortable, and you can go live your best life
(42:20):
two miles from your daughter and your grandkids in San
Diego in a cute little condo area and have the
best retirement instead of staying where you didn't want to
be just because you didn't have this option. So why
that's played devil's advocate? Why not just go rent? Oh?
(42:44):
You could take your proceeds and you could go rent.
You absolutely could. Some people don't want to rent. They
want to own their home. They don't want the rent
to go up. They don't want someone to you.
Speaker 2 (42:57):
Ah, the rent could go up, It could go up.
Speaker 1 (43:01):
Oh my goodness. And if they own the home. There's
one thing I think of that could go up, which
would be the value.
Speaker 2 (43:10):
Oh, the value started on our appreciation.
Speaker 1 (43:14):
Yes, yes, instead of the rent going up, you actually
the value could go up and you could be making
more money on the house from a value standpoint.
Speaker 2 (43:27):
Yes.
Speaker 3 (43:28):
Now, even if you took the funds, and let's say
you had that five hundred thousand and then you're taking
your rent out of it every month. It's silly, but
it's for some people if they wanted to, or they
use a portion of that to invest. If you have
someone helping you invest, Please don't buy anything wild or
(43:51):
go to Las Vegas with your cash.
Speaker 1 (43:55):
Yes, yes, And don't go to Vegas with your cash.
Speaker 2 (43:57):
Please don't do that.
Speaker 1 (43:58):
You are a very good gambler and most of us
are not.
Speaker 2 (44:02):
No.
Speaker 1 (44:02):
Most so, how do interest rates affect reverse mortgages? It's
kind of the.
Speaker 2 (44:09):
Same as we all do.
Speaker 1 (44:12):
Many people see I think often and having had a
background like yours, that people say, well, just take today's
rate because you canize refinance and if the rates go down.
Is that the same thing with the reverse mortgage.
Speaker 3 (44:22):
Tiffany, So the most popular reverse mortgage is actually an
adjustable and we have to stop ourselves and go adjustable again.
Speaker 2 (44:31):
I was told those were bad.
Speaker 3 (44:34):
There they are wonderful when properly positioned for you. Of
reverse mortgage clients do get what is called the Heckam
home equity conversion mortgage, which is the true reverse mortgage
under the umbrella of hud fah.
Speaker 2 (44:55):
It's the one with all the goodies. It's the one
with all the options.
Speaker 3 (45:00):
The line of credit growth factor only exists because this
loan is is adjustable. It's on a very slow moving index.
It's called the CMT very slow moving interest rates like
for instance, Prime just got lowered, So a lot of
my interest rates are going to be lowered because the
(45:20):
index is going to be going down. So in our
environment right now, this loan is fantastic.
Speaker 1 (45:27):
And do the rate do the interest rate change monthly?
Speaker 2 (45:30):
Yes?
Speaker 1 (45:31):
All right, so let's talk about we let's talk about
the children of your clients. Many of them say, and
we both have heard this, I don't know. There's two
people involved in this. One is the children say, well,
I don't want my parents to have a reverse mortage
because then all the equity is going to be gone.
(45:53):
Actually that's kind of going to be my own investment, right,
my inheritance. The other thing is an adults who say, well,
I don't want to have a reverse mortgage because I'm
leaving it for my children. So what do you say
to those people?
Speaker 2 (46:10):
A couple different things.
Speaker 3 (46:12):
A number one, if my sixty two plus clients are
not living their best life. I ask more questions about
what they'd like to be doing, because I truly believe
that that money still belongs to the owners of the
home while they're here on this beautiful earth. It is
your money, not your children's money, all right. And my
(46:34):
dad was worried about my inheritance, and I told him,
do not worry about it.
Speaker 2 (46:38):
Please go have fun, do your thing.
Speaker 3 (46:41):
So I did have a dad that was worried about us,
and I am on the other side of the coin
where I was raised to actually have a job and
do well and be my own person. But we will
talk about this, and these loans are still very conservative.
So what we do is we look at numbers for
(47:03):
the future with appreciation. Specifically in our state, California, on average,
we're about six and a half percent appreciation, and our
numbers do usually.
Speaker 2 (47:16):
Very conservative at four.
Speaker 3 (47:17):
So we look at numbers and we go, Okay, when
you're ninety five years old, you're still going to have
x amount of equity based upon appreciation.
Speaker 2 (47:27):
So we do dive in.
Speaker 3 (47:29):
We do look at that because there are sometimes different
types of loans where you will have negative equity, So
we talk about this. We do screen shares, We sit
at kitchen tables, we talk about what is your plan, and.
Speaker 2 (47:46):
There are several different things we can do.
Speaker 3 (47:48):
So, for instance, say Joe and Susie want to keep
their home, but it is for their kids.
Speaker 2 (47:57):
But their kids are renting right now, and.
Speaker 3 (47:58):
They're paying three thousand dollars in rent, and they're having
a new baby. All right, Joe, you already told me
the house is your son's. He's having a new baby.
He pays three thousand dollars in rent. Hmmm, we would
love to help him buy a house.
Speaker 2 (48:15):
What do we do?
Speaker 3 (48:17):
Well, I've gotten the call. I want to help my
grandson buy a house. I'm eighty three, and I want
to get a line of credit he lock.
Speaker 2 (48:24):
I go, oh, are you sure? That's eighteen hundred dollars payment.
Let's have Let's not listen to this audience.
Speaker 1 (48:33):
Listen to this.
Speaker 2 (48:36):
The he lock has a payment attached to it.
Speaker 3 (48:40):
Okay, it has a beginning date and date payment attached,
just like a credit card.
Speaker 2 (48:47):
So why don't we explore our options.
Speaker 3 (48:50):
You already said the house is your son, so why
not utilize some of the equity to give him future
inheritance while you are still on this beautiful earth. And
can guide them in the process of being a homeowner.
Alternative you pass away, sun gets the house, doesn't want
(49:10):
the house, the house is in disarray, sells the house
cash in hand. Oooh, I have five hundred thousand dollars.
And this is not everybody, but a lot of people
do not know what to do with a large amount
of money.
Speaker 2 (49:25):
No, they do not.
Speaker 3 (49:27):
So what happens if they both go We're at the
Cady dealer and we're driving away with two escalades. They're
beautiful cars, but they're not going to shelter your family.
So again, future inheritance is really really cool when you
want to enjoy what you've done and give it while
(49:49):
you're still on this earth to see the joy it brings,
the financial stability, the security, the Sunday dinners that you're
life no longer has to cook because now it's.
Speaker 2 (50:02):
On your daughter in law woo, and.
Speaker 3 (50:07):
What you've taught your kids now they get to go grow.
But the cool part is you don't have.
Speaker 2 (50:13):
To wait until you die.
Speaker 1 (50:15):
Right And a lot of times I think what children
and I am the adult child of aging parents, even
children our age is that we don't realize is that
we either have to pay for our parents now, so
we financially help our parents now, or and then we
get this inheritance hopefully, or we use the inheritance now,
(50:39):
but then we don't have to take it out of
our own pocket to help them with their housing and
care expenses.
Speaker 3 (50:45):
Well, let's talk about that real quick, because if I
had to give my parents, let's just say a thousand
dollars each month, that would be diving into my current retirement,
my kids money that maybe we didn't go to to Disneyland,
or maybe I couldn't take them on that trip they
really wanted to go with school. It is cutting into
(51:07):
your personal current right now, right where we are. We
are not promised tomorrow is it is taking away from
your current family. We don't know what the future is
going to bring, but we know everybody needs to be
cared for right now. And if we can find an
alternative from giving family members money every single month out
(51:28):
of your pocket, and we could utilize their own equity.
It also allows them to keep their dignity.
Speaker 1 (51:37):
Yes it does, it does, and they deserve their dignity,
and they deserve to be treated well and live well
and to be respected as a human rights. Our that's
our thing right now, is that everyone is They're always human,
and they deserve to be respected, and certainly we would agree,
you and I would agree that they deserve to have it.
(51:59):
So input and some thoughts into how this should be used.
Shouldn't be our decision, should be their decision always, and
why not let them have money to go on vacation,
you know, and a.
Speaker 3 (52:11):
Lot of it's interesting. I thought, oh, gosh, you know
she's going to want to travel, She's going to want
to do stuff. No, no, no, she really just wanted
to go out to lunch.
Speaker 2 (52:18):
With her girlfriends. Yeah.
Speaker 1 (52:19):
Absolutely, absolutely, Tiffany, big thanks to you for being with
us today. You are obviously well versed, you have a
lot of information, you're experienced. And just one really quick question,
so how can someone know we have barely about thirty
seconds left. How can someone know who's the right person
to choose to help them with their reverse mortgage? We
(52:42):
hope everybody uses you, but they hear ads on the
TV and so forth, so how do they know.
Speaker 3 (52:48):
Okay, I am going to say something that may not
be what everyone wants to see here, but I am
what is called a broker. I can shop around two
different people that lend the money, and I can find
the best deal as a broker. If you go to
one person who might be the ones putting the ads out, you're.
Speaker 2 (53:10):
In their tiny little box.
Speaker 3 (53:13):
I prefer a great big box, just because I might
not fit in the tiny box.
Speaker 2 (53:18):
So that is number one.
Speaker 3 (53:19):
It's your choice, but your question should be answered without hesitation.
I study reverse mortgages every day. I'm in a coaching class.
I am not somebody that just dabbles in reverse.
Speaker 2 (53:34):
Oh yeah, we have that.
Speaker 3 (53:36):
No, no, no, this is what we do. I would investigate.
I would ask questions that any questions, ask them all,
even the ones that you think might make you sound
a little bit ignorant. Don't think that this is a
very detailed type of loan. Please ask questions and make
sure that those answers are satisfactory to you.
Speaker 1 (53:58):
Yes, and I know I can be witness to the
fact that every mortgage company does not have the same programs.
There are little twists to every one of them. And
be sure that you don't take no for an answer,
or that someone says we can't do that. There's some
other exciting things they're available right now that haven't been
available and aren't available with everybody. Tiffany, thank you so
(54:20):
much for being with us, and to our viewers and
our listeners. Whether you're sixty two or you're just planning ahead,
or you're beyond sixty two, knowledge is power, and it
all starts with asking the right questions. So join us
next week for another episode of Always Ageless with Valerie
V for more stories, insights, and inspiration here on Always
Aides Us, where we prove that age isn't a limit,
(54:43):
it's a launch pad.
Speaker 2 (54:44):
Thank you, Tiffany, Thank you Valerie
Did you know that over a million Americans over sixty
are sitting on more than one hundred billion dollars in
untapped home equity, and many of them don't even realize
it could change their lives. So, whether you're caring for
an aging parent, approaching retirement yourself, or reapproaching the age
(00:48):
of sixty two plus yourself, or just wondering what a
reverse mortgage is all about? What does that really mean?
The good, the bad, and the ugly and a lot
of good. Today's show is for you. My guest, Tiffany Nieri,
is a mortgage expert and the voice behind Retirement Reimagined.
(01:09):
She's on a mission to clear the fog, challenge the myths,
and show you how your home can actually fund your freedom.
So let's get into it. Welcome Tiffany to Always Aigless.
Speaker 2 (01:21):
Thank you, Valerie.
Speaker 3 (01:23):
First time on an actual radio show, so I'm pretty excited.
Thank you so much.
Speaker 1 (01:27):
You're welcome. Yes, we are a real radio show here
on Kimmy t.
Speaker 2 (01:31):
Yeah.
Speaker 1 (01:32):
I love sharing all of our tips and tricks and
all the great things that people need to know about
living life Always ageless, and I know that that's your
passion as well. Slightly different side of things than what
I do. But that's why we wanted you on our
show today because we know that you have a passion
for seniors and for helping them in your own way,
(01:52):
and we want to hear about that. We want to
hear about some of the ways that you've actually helped people.
Because some of our listeners and viewers, because this will
be known as a video as well, they're going to
have a lot of questions and they may not ask them.
But I think, and I think you'll agree with this,
that a lot of times people don't know what to ask.
Speaker 2 (02:11):
Yes, and this is true.
Speaker 3 (02:13):
So I really like to start off with a true
fact that I have been.
Speaker 2 (02:19):
I have been in the.
Speaker 3 (02:20):
Loan business, real estate finance for thirty years and up
until about four years ago.
Speaker 2 (02:28):
Five years ago, I thought reverse mortgages were.
Speaker 3 (02:31):
Bad well, and they used to be, and they used
to be. They have since been rehabed. We like to
use their real estate term. They have definitely become very conservative,
even more conservative than some of my clients would like
them to be. But they have tightened up the restrictions
(02:54):
they are They are makes sense loan now. They want
to keep your equity they have noticed to have your
home back, the bank does not want your home. That
is a myth. And we're going to be busting a
few myths today because a lot of my clients that
are sixty two plus heard about the reverse mortgage.
Speaker 2 (03:16):
Back in the day, just like I did.
Speaker 3 (03:19):
And that just sticks with you unless you raise your
hand and ask some questions, or someone likes me like me,
comes on a radio show and says, hey, let's bust
the myths about reverse mortgages.
Speaker 2 (03:30):
And that's what we're going to do today.
Speaker 1 (03:32):
So you've been breathing real estate since childhood, I see,
and have originated loan since nineteen ninety seven. That's about
the same time that I did. So what drew you
specifically to serving older adults and reverse mortgages.
Speaker 3 (03:47):
Yes, So being in the finance world for this amount
of time, you I don't want to say burnout, but
you're talking about the same things that my fellow loan
officers are talking about. When you get in a group, well,
that gets exhausting and I wanted something new. I turned
I'm fifty two and about forty eight, I was getting
(04:08):
a little antsy and I came across my mentor Christina Harmshaika,
who is local to my area, thank goodness, I'm in California,
and she coaches people in the reverse world, people like
me as a loan officer and teaches us that they
are not your auntie's loan. But she also teaches us
(04:31):
the proper way to present them, speak about them, nurture
our clients because these loans are not boom boom boom
like a purchase you would do for a thirty.
Speaker 2 (04:41):
Five year old.
Speaker 3 (04:42):
They can take six months, and that's okay, that is okay.
Speaker 2 (04:48):
It's funny.
Speaker 3 (04:49):
My mom used to pray that I would have patients,
and now I'm doing a six month loan.
Speaker 2 (04:54):
I know.
Speaker 1 (04:54):
Boy, I never have patients except with my customers, that's
for sure.
Speaker 3 (04:58):
Yes, so you learn, but I find it very interesting.
I love the stories from my clients. I love hearing
about their history because they've got a lot of history.
You know, when you're working with someone that's maybe in
their eighties, that's some stories.
Speaker 2 (05:14):
Sixty two not so much that's only ten years older
than me.
Speaker 3 (05:17):
But my older clients, I love listening to them and
that we.
Speaker 2 (05:22):
Just sit on the phone for sometimes a little too long.
It goes into my next appointment.
Speaker 1 (05:26):
So give us your okay. So you start. So you
met this person, this lady, and you listen to her,
and that sparked something in you that you thought, this
is something I would like to do.
Speaker 2 (05:37):
Sparked something.
Speaker 3 (05:38):
Her story was she used to be a loan officer
and then she came across some information on the reverse
and she tells a very heartfelt story about her grandfather.
Speaker 2 (05:51):
And he's Hungarian.
Speaker 3 (05:53):
My family's Hungarian, so we kind of it all went together.
But he would have probably lived a very long, happy
life instead of passing away had anyone in the family
talked about reverse mortgages to him. Yes, And it's not
really my place to talk about her story, but it
(06:14):
is what drew me to it, and I just jumped
in with both feet. I paid for some training with her,
I got with her personally, and we do a Wednesday
chit chat with a bunch of loan officers all over
the US that help educate about reverse mortgages and have
a passion for it. So I am in good company.
Speaker 1 (06:37):
So this is something you felt that you had a
heart for.
Speaker 3 (06:40):
Oh, yes, absolutely, And it's very interesting and I don't
mind that. Sometimes you get critics not a problem because
it gives me an opportunity to educate, because a lot
of times the critics are just bringing what they knew
from the past, and that's okay, that's what they know.
So I feel like it's my job to again educate
(07:03):
bus the myths talk about options and tell stories about
people that it's helped.
Speaker 1 (07:10):
And this, like any other loan program or real estate program,
or any program for older adults where they should live,
how they should finance, what they should or shouldn't do. This,
like any of those other things, isn't for everybody, no,
but for some people, it literally can be a life saver.
Speaker 3 (07:33):
Life changing. Would you like me to go into a
story I just did, certainly tell us about it, all right.
This scal was referred to me by a real estate
agent who talked to a friend, who.
Speaker 2 (07:44):
Talked to a friend. And she was seven.
Speaker 3 (07:46):
She is seventy two, which does matter to my law
because it's all about age, property value, and of course
the market at the time, So age matters in my world.
And we talk about dying, and we talk about airs,
we talk about trust, We talked about things that maybe
somebody's uncomfortable with.
Speaker 2 (08:03):
When I spoke to her.
Speaker 3 (08:06):
She was very monotone, had no excitement in her world.
And my job is to ask questions. My job is
to dive in a little bit. No heirs house is
paid for worth one point seven She does not have
a cell phone, she does not go out.
Speaker 2 (08:22):
With her girlfriend.
Speaker 3 (08:23):
She can't afford lunch, she can't afford movies. She cannot
go anywhere and have fun. But she's sitting on a
home that her grandfather built that's worth one point seven million.
Like I mentioned before, this loan is extremely conservative, so conservative.
Speaker 2 (08:40):
She was like, oh gosh, that's that's enough, but I'm surprised.
That's all.
Speaker 3 (08:44):
We got her enough money to do some work around
the house, so she got all new decking. The house
was peeling paint everywhere, so we got this work done.
We gave her a little bit of cash up to
pay off her credit cards.
Speaker 2 (09:02):
She was She had a little chart. She would pay
off one credit.
Speaker 3 (09:08):
Card with another credit card just to go to the grocery,
just to get fuel, just to make ends meet. So
she was fifty thousand dollars in debt on her credit card, just.
Speaker 2 (09:20):
From trying to live.
Speaker 3 (09:22):
We got her enough money to do the repairs, pay
off her high interest credit cards. The home had no
loan on it, so to speak. Actually, I'm sorry. It
didn't have a helock that someone gave her a year prior,
at seventy one years old.
Speaker 2 (09:37):
Someone gave her a heelock, but she had no But
she had no first no, so she had.
Speaker 1 (09:45):
No primary So let's explain to our audience.
Speaker 2 (09:47):
What that means.
Speaker 3 (09:48):
So she did not have a primary loan on the
home like you would expect faha, conventional VA, not a
thirty year fixed mortgage. However, she had a line of credit,
which is very similar to a credit card. You get
X amount of money and you use it as you
need to and then the payment is based on what
you need. This was maxed out along with fifty thousand
(10:10):
dollars in credit cards. And it doesn't seem like a lot,
but when you're on fixed income, that is a lot,
very very stressful for her. She admitted to me after
a few chit chats that she was not sleeping. She
doesn't sleep, and to anybody, I don't it doesn't matter
(10:30):
your age. Sleeping is so important for your health. So
I'm thinking to myself, I can help this woman. I
can change her life. Absolutely, so on.
Speaker 2 (10:43):
And on.
Speaker 3 (10:44):
Got her an increase in her monthly income. So we
have what is called a ten years So she got
we started at seven hundred and fifty dollars a month
extra in her checking account. And she said, tip, I'm
seventy two years old. I think I want a thousand
dollars a month. I said, good for you. Good for you.
(11:06):
And it's not because the loan increases or anything from me,
but I want.
Speaker 2 (11:11):
This woman to live live.
Speaker 1 (11:14):
So let me interrupted this a second again for the
benefit of our listeners and our viewers. So what that
meant was she was going to receive a check or
a deposit in her bank account for one thousand dollars
a month. So you were going to pay off her
credit cards. You were going to give her money to
fix her deck so she could go outside, right, Yes,
(11:34):
and in addition to that, she was going to receive
one thousand dollars a month that she could spend on
food and so forth.
Speaker 3 (11:42):
Yes, and this is going to help her obviously live
her best life. But the kicker in all of this
is my favorite part of It's called a heck of
home equity conversion mortgage, also known in the layman's terms,
as a reverse mortgage. So we got her a line
of credit. And this is not the line of credit
(12:04):
that you go to the big box bank and get.
Speaker 2 (12:06):
This is not one of those.
Speaker 3 (12:09):
This is under the umbrella of hud FAHA government backed loan.
Speaker 2 (12:14):
The line of credit.
Speaker 3 (12:15):
For instance, Let's say you get one hundred thousand dollars
in the line of credit. It has a growth factor,
and the growth factor is typically a half a percent
higher than the actual interest rate for that month. What
that means, Let's assume the interest rate is six and
a half percent, okay, so the line of credit growth
(12:38):
would be a half a percent higher than that seven
So on one hundred thousand dollars in a year, if everything,
of course, stayed the same, you would have one hundred
and seven thousand dollars available to you of liquid equity.
Liquidity means you could take it out very easily. It
(12:58):
is not stuck in your home one hundred thousand dollars.
Is that what you just said?
Speaker 2 (13:03):
Yes, okay, And I'm just giving an example.
Speaker 3 (13:06):
This gal got a little bit more than that because
she could, of course, now the idea behind the line
of credit. Strategically, the longer you leave it there, the
more access to your equity you have, it grows.
Speaker 2 (13:21):
It's fantastic.
Speaker 3 (13:23):
It is a very strategic move that my financial advisors
absolutely love. But I don't want to get too deep
just yet. The line of credit is there for her
later on, later on when maybe.
Speaker 2 (13:38):
Some repairs become due.
Speaker 3 (13:40):
Or she needs some kind of She had a to
story house and she wasn't moving, so she's going to
have to make this home friendly in the event that
she no longer can go upstairs, or she needs to
adjust it to her living standards as she ages. And
that's fantastic because she has the ability to do that
(14:02):
in two days. They say they have up to five
days to put in your checking account, but it takes
about two days and you go online or you call
them or you fax them, and the money ends up
in your account.
Speaker 2 (14:13):
Just magine. So she is.
Speaker 3 (14:19):
Number one two weeks into the lung she was already
sleeping better. Yes, of course, and this made me feel
better because now her health is going to improve.
Speaker 2 (14:29):
Yes.
Speaker 3 (14:32):
So not only did we give her a fun life
with her girlfriends, we gave her health benefits. She raised
her hand and she was she was done living the
life she was currently living. And someone gave her an
opportunity to raise her hand. Someone gave her an out,
(14:52):
so to speak, and she took it. And I'm very
very proud of her, and she is. I check in
with her every other month or so and see how
she's doing.
Speaker 1 (15:05):
That's a great story and just one of many. And
we have to we have can help. But think about
how many other people are there out there listening to
us today and watching us who either are in that
situation or who knows somebody who is, or knows somebody
(15:26):
who's about to be.
Speaker 3 (15:29):
Yes, a spouse, the way, we'll leave you in a
very bad position because you're going to be losing income.
And some may say, oh, just sell the house. Well, sure,
sometimes that is not the answer.
Speaker 1 (15:45):
And I think one of the saddest things I hear
and see is when a spouse passes away and someone
gets the advice you need to sell your house, and
the realtor goes there says, oh, you need to sell
your house right now. First of all, maybe they don't.
(16:07):
Number two, maybe they don't want to. And number three
is maybe it's not the best time. Maybe if they
held on a little while, they could sell it for
more money, or maybe if they made a few repairs,
they could stay there, or they could sell it for
more money. And one of the things I think, and
I'm sure you'll agree, Tiffany, one of the things I
(16:29):
think is the saddest thing is when people don't know
their options.
Speaker 2 (16:34):
Options. You just said the key word. I'm a huge
fan of options.
Speaker 3 (16:38):
Whether or not I'm buying mayonnaise or I'm buying a car,
I need options.
Speaker 2 (16:43):
Yes, I don't want end to buy all one thing. No.
Speaker 1 (16:47):
And I was asked recently on an interview, a TV interview,
and the gentleman asked me, so what do you want
your if you could have for your superpower, what would
your superpower be? And my answer was, my superpower would
be to give people options and to protect them.
Speaker 3 (17:05):
Right.
Speaker 1 (17:06):
And I'm sure you feel the same way. Listening to
you and what I know about you, I believe that
you're the same way that you.
Speaker 2 (17:12):
Just the story you told us, it's.
Speaker 1 (17:14):
An amazing story of someone else would have said, oh,
you should sell the house because and then they would say,
because look at all the money you're going to get,
and you can take that money and live off that,
which she could, but.
Speaker 2 (17:29):
Maybe she didn't want to leave that house.
Speaker 3 (17:32):
And this house was actually very emotional for her because
her grandfather had built it. So she has no plans
on leaving. So we checked off the boxes that she wanted.
She gave me her wish list, We got them all.
Speaker 1 (17:47):
That's pretty impressive. So tell us, Tiffany, give us your
sixty second explainer.
Speaker 2 (17:53):
What is a reverse mortgage? What is it not?
Speaker 1 (17:57):
And bust the top myth that you're the most often.
Speaker 2 (18:01):
Okay, so there's book reverse. There you go, and I
am going.
Speaker 3 (18:06):
To read the functional definition of a reverse because there's
two paragraphs about what a reverse is and then there's
a functional definition.
Speaker 1 (18:16):
All right, ladies and gentlemen, you're hearing it here and
always ages from Tiffany.
Speaker 3 (18:21):
A federally insured loan. This is insured from HUT all right,
loan product that allows homeowners age sixty two or older
to access a portion of their home equity in cash,
monthly payments or a growing line of credit options options.
With this particular type of loan, it's very customizable and
(18:46):
it's really fun my side to go, Okay, what do.
Speaker 2 (18:50):
We need to do?
Speaker 3 (18:51):
And I'm back here on my little computer customizing it.
And then I'm giving a proposal and they're going, oh,
this is great, But we just remembered that we want
to do the bathroom at our kids house because when
we stay there, we don't want to get into.
Speaker 2 (19:04):
The bathtub right It's unsafe for us.
Speaker 3 (19:08):
So we want to help our daughter remodel her bathroom
so that we stay with her it doesn't feel uncomfortable
for us. And you can do that, and that's fantastic
to me. It opens up all kinds of possibilities. So
the number one myth, Oh, the bank owns my home. Yes,
(19:29):
I think that's true.
Speaker 2 (19:31):
I've heard that so often.
Speaker 3 (19:33):
Well, I have a traditional law right now because I
am not sixty two yet, and the bank owns a
portion of my home because I owe them and I
owe the other half. So every time that you get
a loan, it is collateral. However, you are still untitle.
You can refinance, you can sell, you can do anything
(19:54):
you want with your home, so long as you pay
your taxes and insurance.
Speaker 1 (20:00):
Yes, yes, and there's so much more, And I want
to go to. Your podcast is called Retirement Reimagine. It
aims to flip the script on senior living. What script
needs flipping the mouse when it comes to housing and
finances over.
Speaker 2 (20:14):
Sixty Oh gosh.
Speaker 3 (20:16):
Well, I have talked to people when they retire, they
sleep all day.
Speaker 2 (20:22):
I talked to two gentlemen.
Speaker 3 (20:24):
One was sixty seven, one was seventy four, and they
retired in the past six months, let's say, because all right,
and I said, so, what are you doing with your day?
Speaker 2 (20:36):
Oh? I sleep until noon. And that's in my mind.
Speaker 3 (20:43):
I would want him being out doing the things he
never got to do, fixing the car that's in.
Speaker 2 (20:49):
His garage that he's always wanted to fix.
Speaker 3 (20:52):
So I want to give options for people, or I
want to give safety features. I had a police detective
on talking about fraud.
Speaker 2 (21:01):
So we give people options.
Speaker 3 (21:04):
Maybe they want to be a Ham radio operator at
their local police station.
Speaker 2 (21:09):
My husband is on that group, but he's with a lot.
Speaker 3 (21:12):
Of people sixty two plus in this little group and
they tinker with their little Ham radios because ham radios
are back in the day.
Speaker 2 (21:21):
I don't know if you know what a ham radio is.
Speaker 1 (21:24):
I do, Actually I do. My brother was a Ham
radio operator.
Speaker 3 (21:30):
Yes, and a lot of people that are maybe over
seventy know what ham radio is. I'm a Ham radio licensee.
My license plate says my call sign. But it's yes, it's.
Speaker 2 (21:44):
Calling I remember that. Yes, Yes.
Speaker 3 (21:47):
So the idea behind my podcast is to talk about
things that maybe need to be brought to the forefront.
Hell had we had an owner of AGA Studio on
the other day talking about eating healthy, breathing, breathing. Do
you know so many people take tiny little short breasts
(22:10):
from up here and not down here?
Speaker 2 (22:12):
Not they're abdomen.
Speaker 1 (22:13):
Yes, and I'm and you know well out where you live,
you know, in Lomolinda University. Also there's a section on
the blue zones, right, blue zones.
Speaker 2 (22:25):
An agent.
Speaker 1 (22:25):
There's a gentleman that has a site called Living Eating
to one hundred, which is great. But Tiffany, I want
to ask you this is I think an incredible testimony
that you talk about and experience you had with your
own father that he was a real estate veteran and
he went from a reverse mord skeptic to an advocate.
(22:48):
What changed his mind?
Speaker 3 (22:50):
Well, my dad, we he sits across from me and
I talk about reverses all day long. So my dad
is not in the category where he quote needs a reverse.
There are clients that need a reverse. He's more of
a strategic user of the reverse, because my dad likes
(23:13):
to stay very mentally active and physically active. He buys
homes in Mexico, and when you buy a home in
Mexico takes a good year year and a half. Well,
he was using his line of credit. Well, he's on
fixed income, so he had a payment on this line
(23:33):
of credit every month, but he didn't own the property
going along with it.
Speaker 2 (23:37):
So he was out all of this money for a year,
year and a half.
Speaker 3 (23:42):
Doing what he really likes to do, just for fun.
But why not make it better? So he's hearing me
talk and he sits me down. He goes, I think
I need one of those lines of credit, He said,
you think my dad did not want to put a
loan on his house because of my sister and I.
(24:06):
He did not want to. He did not want to
dive into our inheritance.
Speaker 1 (24:14):
And a lot of people feel that way, don't they.
Speaker 3 (24:17):
Yes, And I watched my dad work very hard, my
whole life very hard. Back when we were kids, there
were no cell phones, so my dad couldn't just run
to my softball game because he'd miss a phone call.
That's on his desk phone attached to the wall. And
that's what pays our bills. Is that phone ringing?
Speaker 2 (24:39):
Yeah, so that's true. And I watched him.
Speaker 3 (24:43):
I'm sure he wanted to be at my softball game
because I was pretty good, So why wouldn't you want
to be there? So I saw him work extremely hard.
So I want my mom and my dad to live
their best life. Right now, they're in Cavo, they come
home for three days and then they go to Miami Beach.
Speaker 1 (25:03):
Oh, have fun?
Speaker 2 (25:04):
Yeah why not? Why not?
Speaker 1 (25:07):
And they were able to do this because of the
reverse mortgage.
Speaker 2 (25:11):
Well, the Mexico situation. Let me get back to that.
Speaker 3 (25:15):
So now he's using his line of credit to buy
the property. When he sells the property, he pays the
line of credit back, right because that whole year there's
no payment, there's no payment, So he's not dieving into
his fixed income to try to do his hobby.
Speaker 2 (25:34):
Of course.
Speaker 3 (25:36):
Yeah, so it's very strategic for him, and he and
I both in real estate. He's been in real estate
since sixty nine, very long time. He was licensed when
he was eighteen years old. And again we were both
of the same mindset.
Speaker 2 (25:52):
But now we are converted.
Speaker 3 (25:54):
We understand the new and improved reverse mortgage, and we
are using it to better our lives.
Speaker 2 (26:01):
When I turn.
Speaker 3 (26:01):
Sixty two, I'm putting one on my home one hundred percent.
The line of credit will see.
Speaker 1 (26:09):
The person who actually got me started with my radio
show was a gentleman who had a show every Friday afternoon.
Speaker 2 (26:14):
You may have known.
Speaker 1 (26:15):
His name is Jay Kaplan. And Jay said everybody should
have them, whether you need it or not. So we
haven't done it yet, but certainly I keep thinking that
in the back of my mind. So Tiffany, A lot
of times we hear that everybody's not a good candidate,
and I have so many questions for you. Everybody's not
a good candidate for this, So who is and who isn't?
Speaker 3 (26:35):
All right, let's talk about who is not? Somebody that's
getting ready to move in the next two years. This
loan is not free, and that is one of the myths.
It's not a myth because the loan does have a
cost to it, and that is one of the questions
that I always get, or a comment, oh, it's so expensive.
Speaker 2 (26:59):
It's pretty price. See if you're not going to keep
it over two years.
Speaker 3 (27:02):
The longer you keep it, obviously, the less amount of
cost it is. But it does have a mortgage insurance premium.
So again, if you're moving in two years, not a fit.
If you're going to be three plus possibly now, if
you need short term money, we have other options for
that under the umbrella of reverse, but not on the
(27:25):
heck'm that we're talking about right now. Again options, So
person that's going to be moving, someone that is possibly
maybe we have to be over sixty You have to
be over sixty two. You have to be over sixty two,
and sixty two again is very young. That loan will
(27:48):
be extremely conservative. You'd be surprised. Rarely do they let
you borrow even fifty percent of the value of your home.
Speaker 2 (27:57):
Rare.
Speaker 3 (27:58):
You need to be up in the eighties, up in
the eighties and have a very good market for that.
So they're only going to let you do I'd give
you an example, all right.
Speaker 2 (28:12):
I'll use my dad because he has given me permission.
Speaker 3 (28:18):
Estimated property value eight hundred thousand at the time. He's
seventy five years old, all right, all right, they are
only going to allow him to tap into three hundred
and forty five thousand dollars of his eight hundred at
seventy five years old. That leaves quite a bit of equity,
(28:44):
doesn't it four hundred and some change of equity. The
bank is not here to take your equity. It is
here to allow you options for living your best life.
If maybe your retirement isn't as you thought it might be,
or inflation little hitting a little bit harder, or you
lost a spouse, those are the people that actually need it.
(29:07):
Losing a spouse wanting to No, let's stay on that.
It's not good for You're right, we should stay on task.
Speaker 2 (29:17):
Again.
Speaker 3 (29:17):
I could talk about this all day long. I love
this loan, and I'm right.
Speaker 2 (29:21):
Oh, that's why you're on. Okay, who else?
Speaker 3 (29:31):
Sometimes if you have a spouse, let's say you're sixty
two but your spouse is only fifty nine, they are
going to lower the amount of money that you get.
The spouse could still go as a non borrowing spouse
and stay stay in the home, but you're going to
get less money. So we might want to wait until
everybody's sixty two. So sometimes age is something that we
(29:55):
wait for. So those are the big ones that we
kind of say might not be a fit.
Speaker 2 (30:04):
If the house has two stories, the driveway.
Speaker 3 (30:07):
Is a forty five degree angle, you can't get your
trash cans, your bedroom is upstairs, kitchen is downstairs, No
downstairs bedroom. This might be something we need to dive into,
and we ask about the home. Do you love the home?
Is it conducive to aging in place? Can you see
yourself being there and being able to utilize the whole house.
Speaker 2 (30:30):
I've had clients that only stay downstairs.
Speaker 3 (30:32):
They have a been upstairs in three years.
Speaker 1 (30:35):
All right, so let me ask you a question. So
why would someone Let's talk about a surviving spas situation.
So there's something that's called a non borrowing spouse and
airs what protections exist today and what happens to the
home when the borrower passes.
Speaker 3 (30:57):
All right, let's say we're getting really deep here on
the non borrowing spouse. Okay, non borrowing spouse is able
to live in the home until they pass or vacate
the home after the main borrower passes away.
Speaker 2 (31:12):
We can dive into that.
Speaker 3 (31:12):
If that's something you guys have, that would be someone
under sixty two.
Speaker 1 (31:17):
So let's just be sure we define that again for
the benefit of our viewers and our listeners. What is
a non borrowing spouse?
Speaker 3 (31:25):
Define that spouse is someone under sixty two.
Speaker 2 (31:29):
Who was married.
Speaker 1 (31:30):
So I'm I'm I'm seventy and my spouse is sixty one.
I passed, so they could not be on the loan.
Speaker 2 (31:41):
Is that correct?
Speaker 3 (31:42):
They're they're they're on title. They have access to the home.
They are not going to be kicked out. They have
access to the home, but they do not have access
to any line of credit funds. Okay, So now I'm
passimate because they're not on the loan.
Speaker 1 (32:00):
Okay, So I pass away and my spouse is sixty one,
fifty nine or whatever, So what happens to them?
Speaker 3 (32:07):
They can stay in the home business as usual. However,
they have to keep up on taxes and insurance. But
if there was a line of credit or any funds
being deposited each month, those freeze.
Speaker 1 (32:23):
But if they had the kind of loan that it
just had no mortgage payments, then they can stay there. Yes,
And the reason they get to stay there is because
they were on the loan when it was originated. Correct,
So what Let's let me ask a question. What So
I'm I have a reverse mortgage and now I marry someone,
(32:48):
So now what happens and I pass away?
Speaker 3 (32:51):
Now it happened that one they are not covered you
must be married at the time you do the loan
for the non borrowing spouse to take effect.
Speaker 2 (32:59):
All right.
Speaker 1 (33:00):
So if I marry someone after I originated the loan
and I pass away, then they have to do something
with it. They have to pay it off, do something else.
Speaker 3 (33:10):
They can refinance into their name under the umbrella of
reverse if they are sixty two plus, okay, which is
traditionally what someone would do, all right.
Speaker 2 (33:19):
Or they can sell the home if they're not.
Speaker 3 (33:21):
If they don't want to be there anymore, maybe they
can refinance to a traditional loan if.
Speaker 2 (33:27):
They wanted to.
Speaker 1 (33:29):
Yeah, all right. So now let's talk about airs. So
my mom and dad have a reverse mortgage, they or
one of them passes away. Now what happens to me
as their child? What can I do with that property?
You can?
Speaker 3 (33:43):
Number one, You cannot just move in, you I can.
You cannot just move in. This loan is attached to
the two borrowers that qualified.
Speaker 2 (33:54):
Okay, you cannot move in and just live red free.
Speaker 3 (33:57):
Oh yeah, so you must refinance. If you own the
property from maybe being in the trust and the property
passed directly to you. Now you now own the property,
you can do a refinance if you are not the
heir that owns the property basedupon whatever documentation is listed,
(34:21):
the the option is to purchase it or to sell it.
So it depends really where you are as an heir
if the property got passed out to you. Refinancing is
ideal if it's a property you'd like to keep, and
if you're the only rule that just refinance into another reverse.
Speaker 1 (34:42):
If I'm old enough, But isn't there some rule about
if I'm the air about I can I can buy
the loan for some amount less than what it is
or less than what.
Speaker 2 (34:56):
It is worth, less than a praise about you.
Speaker 1 (35:00):
Okay, so I'm sorry, tell us again, I may.
Speaker 3 (35:02):
Have interrupted you five percent less than a praise value
and huggles, and you'll get a hut appraiser out there.
Speaker 1 (35:12):
So I can buy it for less than the appraise value.
But what happens to that existing reverse mortgage?
Speaker 2 (35:21):
You have to pay it off.
Speaker 3 (35:23):
It must be paid off upon death or vacating the home.
Speaker 1 (35:29):
Okay, so we pay it off. But then I can
buy the house for less than.
Speaker 3 (35:33):
The appraise under certain circumstances, and the servicer will go
over that with you. When your family members pass and
they had to reverse. Your first step is to call
the servicer. I send this book to my clothes clients.
I put my card on the back and I put
call me. And then I have my clients put their
(35:55):
first mortgage statement in here. Oh, so that they know
who the servicer is.
Speaker 1 (36:02):
Okay, so let's just explain. Make sure everybody knows what
servicer means. The servicer is.
Speaker 3 (36:08):
The person that you make the check to, the person
you're making your payment to. If you have a house
right now, you're making a payment on your loan, that
person is called your servicer. Some people call it the bank,
some call it the lender. They are servicing your loan,
and there's always an eight.
Speaker 2 (36:24):
Hundred number to call.
Speaker 3 (36:25):
Uh. That is who you call and say, I'm sorry,
but so and so passed this is our plan? Or
do I have some options? And yes, there are some options?
Speaker 2 (36:36):
All right?
Speaker 1 (36:37):
So this is so if you're if the company you
make your payment to changes, then it's obviously the current one.
It's not the one who you funded your loan through.
It's not your original loan officer. Always, it's who you're
making your payments to at that time, right, Yes, and a.
Speaker 2 (36:50):
Lot of reverses. They don't.
Speaker 3 (36:52):
They don't change like a traditional purchase, Like you know,
I give somebody that's thirty five a home loan through
ABC com Company, that ABC Company may not be their
service er in six months.
Speaker 2 (37:04):
Yeah, or six years or whatever.
Speaker 1 (37:06):
So we know, we've heard that counseling is required before
a REPS word can be given, and that's something that's
not typical with all mortgage loans. So let's tell our
audience counseling is that what can they expect and what
do they need to have ready before they go into
(37:26):
that counseling session.
Speaker 3 (37:28):
Counseling is a check and balance to make sure I
have done my job and to that said, yes, and
to possibly alleviate any fraud maybe from a family member
or something like that on the back end who's being coerced.
We don't want our seniors being coerced into this loan, No,
(37:49):
we don't. So we have checks and balances. The counseling
looks at the proposal that I provide. They have access
to all the paperwork that I've provided to the.
Speaker 2 (38:00):
Client, and they discuss that.
Speaker 3 (38:03):
Plus they discuss their income and debts, and they do
their own little numbers and go, okay, it looks like
you are you know, good to go or wooh, you're
right there.
Speaker 2 (38:15):
Your home's really going to need to appraise. And we
talk about all of that.
Speaker 3 (38:19):
Obviously, I'm talking to my clients for hours before they
even go into their counseling.
Speaker 2 (38:22):
But I like counseling.
Speaker 3 (38:24):
And this is one of the new items that is
with the reverse counseling. Is it must it's done over
the phone, and it's done by a HUD counselor.
Speaker 1 (38:34):
All right, So it's just in over the phone situation,
and they and they just want to make sure that
the people understand what they're getting into.
Speaker 3 (38:44):
So make you sit down with a HUD counselor. California,
most states are on the phone now.
Speaker 1 (38:51):
Right right for convenience of course, yes, all right, so
that's important that they know what they're getting into.
Speaker 2 (38:56):
Yeah, and all of the things is that they.
Speaker 1 (38:58):
Have, Yeah, that they talk to somebody beside the lone originator.
Because we like to think that everybody who does what
you do and what I do are helpful and honest
and care more about the client than themselves.
Speaker 2 (39:11):
But this is just a good opportunity.
Speaker 3 (39:14):
Yes, go through with them and family members can sit on.
They just have to announce themselves if they want to
learn and help them.
Speaker 1 (39:22):
Yeah, sure, Okay. Let's talk about something else that I
think most people don't really even know about and I
think is an amazing tool. Is the reverse for purchase.
Speaker 3 (39:34):
Oh so, yes, you could buy a house under the
umbrella of reverse. And this is what our sixty two
plus clients need to know because sometimes they want to
move but they don't know how to do it. They've
got equity, but where they want to go, they can't
(39:56):
pay cash, like, oh, gosh, I'm going to get a loan.
Speaker 2 (40:02):
I'm eighty two. I don't want a loan.
Speaker 1 (40:05):
Well, or they can't qualify.
Speaker 3 (40:07):
Or they can't qualify because we're on fixed income right
and our rates are a little bit you know what
people would say, Hi, I've been in it long enough
where we had a party when the interest rates hit
nine point nine to nine because they were in single
digits instead of double So I love a good six
percent interest rate. Again, it's all relative. Yes, the purchase.
(40:33):
A lot of my real estate agent partners don't even
know you can do this, and again it's my job
to get the world word out. But the purchase is fantastic.
So let's say, for instance, you sell your current home
and you get five hundred thousand dollars cash in hand.
All right, Well, gosh, I want to go move to
San Diego where my daughter is, and a condo is
(40:55):
eight hundred thousand. I don't want a three hundred thousand
dollars loan, plus I won't qualify.
Speaker 2 (41:01):
So what do I do?
Speaker 3 (41:02):
Well, Thankfully, Valerie, my real estate agent knows the reverse
options and says, hey, I have a gal that you
should talk to. She's got options for you, and this
may be the answer to your prayers. So we talk
about it, and the client was able to put at
(41:23):
the time.
Speaker 2 (41:25):
Four hundred thousand dollars down.
Speaker 3 (41:28):
Right now, it's probably five hundred thousand, just because our
market changed a little.
Speaker 2 (41:31):
Bit and you put significant down.
Speaker 3 (41:34):
By the way, these loans are all equity driven significant down.
So let's say, for instance, you are seventy, you're most
likely on an eight hundred thousand dollars condo. You're most
likely putting about six hundred thousand down. Okay, because the
loan is going to cover two hundred thousand. Maybe a
(41:55):
little bit different. Right now, rates have gotten a little
bit better getting a loan for two hundred thousand under
the umbrella of reverse, so you don't have a mortgage payment,
you have taxes, insurance, and hoa homeowners association which you
can handle. We've done your ratios, we know you know
you're comfortable, and you can go live your best life
(42:20):
two miles from your daughter and your grandkids in San
Diego in a cute little condo area and have the
best retirement instead of staying where you didn't want to
be just because you didn't have this option. So why
that's played devil's advocate? Why not just go rent? Oh?
(42:44):
You could take your proceeds and you could go rent.
You absolutely could. Some people don't want to rent. They
want to own their home. They don't want the rent
to go up. They don't want someone to you.
Speaker 2 (42:57):
Ah, the rent could go up, It could go up.
Speaker 1 (43:01):
Oh my goodness. And if they own the home. There's
one thing I think of that could go up, which
would be the value.
Speaker 2 (43:10):
Oh, the value started on our appreciation.
Speaker 1 (43:14):
Yes, yes, instead of the rent going up, you actually
the value could go up and you could be making
more money on the house from a value standpoint.
Speaker 2 (43:27):
Yes.
Speaker 3 (43:28):
Now, even if you took the funds, and let's say
you had that five hundred thousand and then you're taking
your rent out of it every month. It's silly, but
it's for some people if they wanted to, or they
use a portion of that to invest. If you have
someone helping you invest, Please don't buy anything wild or
(43:51):
go to Las Vegas with your cash.
Speaker 1 (43:55):
Yes, yes, And don't go to Vegas with your cash.
Speaker 2 (43:57):
Please don't do that.
Speaker 1 (43:58):
You are a very good gambler and most of us
are not.
Speaker 2 (44:02):
No.
Speaker 1 (44:02):
Most so, how do interest rates affect reverse mortgages? It's
kind of the.
Speaker 2 (44:09):
Same as we all do.
Speaker 1 (44:12):
Many people see I think often and having had a
background like yours, that people say, well, just take today's
rate because you canize refinance and if the rates go down.
Is that the same thing with the reverse mortgage.
Speaker 3 (44:22):
Tiffany, So the most popular reverse mortgage is actually an
adjustable and we have to stop ourselves and go adjustable again.
Speaker 2 (44:31):
I was told those were bad.
Speaker 3 (44:34):
There they are wonderful when properly positioned for you. Of
reverse mortgage clients do get what is called the Heckam
home equity conversion mortgage, which is the true reverse mortgage
under the umbrella of hud fah.
Speaker 2 (44:55):
It's the one with all the goodies. It's the one
with all the options.
Speaker 3 (45:00):
The line of credit growth factor only exists because this
loan is is adjustable. It's on a very slow moving index.
It's called the CMT very slow moving interest rates like
for instance, Prime just got lowered, So a lot of
my interest rates are going to be lowered because the
(45:20):
index is going to be going down. So in our
environment right now, this loan is fantastic.
Speaker 1 (45:27):
And do the rate do the interest rate change monthly?
Speaker 2 (45:30):
Yes?
Speaker 1 (45:31):
All right, so let's talk about we let's talk about
the children of your clients. Many of them say, and
we both have heard this, I don't know. There's two
people involved in this. One is the children say, well,
I don't want my parents to have a reverse mortage
because then all the equity is going to be gone.
(45:53):
Actually that's kind of going to be my own investment, right,
my inheritance. The other thing is an adults who say, well,
I don't want to have a reverse mortgage because I'm
leaving it for my children. So what do you say
to those people?
Speaker 2 (46:10):
A couple different things.
Speaker 3 (46:12):
A number one, if my sixty two plus clients are
not living their best life. I ask more questions about
what they'd like to be doing, because I truly believe
that that money still belongs to the owners of the
home while they're here on this beautiful earth. It is
your money, not your children's money, all right. And my
(46:34):
dad was worried about my inheritance, and I told him,
do not worry about it.
Speaker 2 (46:38):
Please go have fun, do your thing.
Speaker 3 (46:41):
So I did have a dad that was worried about us,
and I am on the other side of the coin
where I was raised to actually have a job and
do well and be my own person. But we will
talk about this, and these loans are still very conservative.
So what we do is we look at numbers for
(47:03):
the future with appreciation. Specifically in our state, California, on average,
we're about six and a half percent appreciation, and our
numbers do usually.
Speaker 2 (47:16):
Very conservative at four.
Speaker 3 (47:17):
So we look at numbers and we go, Okay, when
you're ninety five years old, you're still going to have
x amount of equity based upon appreciation.
Speaker 2 (47:27):
So we do dive in.
Speaker 3 (47:29):
We do look at that because there are sometimes different
types of loans where you will have negative equity, So
we talk about this. We do screen shares, We sit
at kitchen tables, we talk about what is your plan, and.
Speaker 2 (47:46):
There are several different things we can do.
Speaker 3 (47:48):
So, for instance, say Joe and Susie want to keep
their home, but it is for their kids.
Speaker 2 (47:57):
But their kids are renting right now, and.
Speaker 3 (47:58):
They're paying three thousand dollars in rent, and they're having
a new baby. All right, Joe, you already told me
the house is your son's. He's having a new baby.
He pays three thousand dollars in rent. Hmmm, we would
love to help him buy a house.
Speaker 2 (48:15):
What do we do?
Speaker 3 (48:17):
Well, I've gotten the call. I want to help my
grandson buy a house. I'm eighty three, and I want
to get a line of credit he lock.
Speaker 2 (48:24):
I go, oh, are you sure? That's eighteen hundred dollars payment.
Let's have Let's not listen to this audience.
Speaker 1 (48:33):
Listen to this.
Speaker 2 (48:36):
The he lock has a payment attached to it.
Speaker 3 (48:40):
Okay, it has a beginning date and date payment attached,
just like a credit card.
Speaker 2 (48:47):
So why don't we explore our options.
Speaker 3 (48:50):
You already said the house is your son, so why
not utilize some of the equity to give him future
inheritance while you are still on this beautiful earth. And
can guide them in the process of being a homeowner.
Alternative you pass away, sun gets the house, doesn't want
(49:10):
the house, the house is in disarray, sells the house
cash in hand. Oooh, I have five hundred thousand dollars.
And this is not everybody, but a lot of people
do not know what to do with a large amount
of money.
Speaker 2 (49:25):
No, they do not.
Speaker 3 (49:27):
So what happens if they both go We're at the
Cady dealer and we're driving away with two escalades. They're
beautiful cars, but they're not going to shelter your family.
So again, future inheritance is really really cool when you
want to enjoy what you've done and give it while
(49:49):
you're still on this earth to see the joy it brings,
the financial stability, the security, the Sunday dinners that you're
life no longer has to cook because now it's.
Speaker 2 (50:02):
On your daughter in law woo, and.
Speaker 3 (50:07):
What you've taught your kids now they get to go grow.
But the cool part is you don't have.
Speaker 2 (50:13):
To wait until you die.
Speaker 1 (50:15):
Right And a lot of times I think what children
and I am the adult child of aging parents, even
children our age is that we don't realize is that
we either have to pay for our parents now, so
we financially help our parents now, or and then we
get this inheritance hopefully, or we use the inheritance now,
(50:39):
but then we don't have to take it out of
our own pocket to help them with their housing and
care expenses.
Speaker 3 (50:45):
Well, let's talk about that real quick, because if I
had to give my parents, let's just say a thousand
dollars each month, that would be diving into my current retirement,
my kids money that maybe we didn't go to to Disneyland,
or maybe I couldn't take them on that trip they
really wanted to go with school. It is cutting into
(51:07):
your personal current right now, right where we are. We
are not promised tomorrow is it is taking away from
your current family. We don't know what the future is
going to bring, but we know everybody needs to be
cared for right now. And if we can find an
alternative from giving family members money every single month out
(51:28):
of your pocket, and we could utilize their own equity.
It also allows them to keep their dignity.
Speaker 1 (51:37):
Yes it does, it does, and they deserve their dignity,
and they deserve to be treated well and live well
and to be respected as a human rights. Our that's
our thing right now, is that everyone is They're always human,
and they deserve to be respected, and certainly we would agree,
you and I would agree that they deserve to have it.
(51:59):
So input and some thoughts into how this should be used.
Shouldn't be our decision, should be their decision always, and
why not let them have money to go on vacation,
you know, and a.
Speaker 3 (52:11):
Lot of it's interesting. I thought, oh, gosh, you know
she's going to want to travel, She's going to want
to do stuff. No, no, no, she really just wanted
to go out to lunch.
Speaker 2 (52:18):
With her girlfriends. Yeah.
Speaker 1 (52:19):
Absolutely, absolutely, Tiffany, big thanks to you for being with
us today. You are obviously well versed, you have a
lot of information, you're experienced. And just one really quick question,
so how can someone know we have barely about thirty
seconds left. How can someone know who's the right person
to choose to help them with their reverse mortgage? We
(52:42):
hope everybody uses you, but they hear ads on the
TV and so forth, so how do they know.
Speaker 3 (52:48):
Okay, I am going to say something that may not
be what everyone wants to see here, but I am
what is called a broker. I can shop around two
different people that lend the money, and I can find
the best deal as a broker. If you go to
one person who might be the ones putting the ads out, you're.
Speaker 2 (53:10):
In their tiny little box.
Speaker 3 (53:13):
I prefer a great big box, just because I might
not fit in the tiny box.
Speaker 2 (53:18):
So that is number one.
Speaker 3 (53:19):
It's your choice, but your question should be answered without hesitation.
I study reverse mortgages every day. I'm in a coaching class.
I am not somebody that just dabbles in reverse.
Speaker 2 (53:34):
Oh yeah, we have that.
Speaker 3 (53:36):
No, no, no, this is what we do. I would investigate.
I would ask questions that any questions, ask them all,
even the ones that you think might make you sound
a little bit ignorant. Don't think that this is a
very detailed type of loan. Please ask questions and make
sure that those answers are satisfactory to you.
Speaker 1 (53:58):
Yes, and I know I can be witness to the
fact that every mortgage company does not have the same programs.
There are little twists to every one of them. And
be sure that you don't take no for an answer,
or that someone says we can't do that. There's some
other exciting things they're available right now that haven't been
available and aren't available with everybody. Tiffany, thank you so
(54:20):
much for being with us, and to our viewers and
our listeners. Whether you're sixty two or you're just planning ahead,
or you're beyond sixty two, knowledge is power, and it
all starts with asking the right questions. So join us
next week for another episode of Always Ageless with Valerie
V for more stories, insights, and inspiration here on Always
Aides Us, where we prove that age isn't a limit,
(54:43):
it's a launch pad.
Speaker 2 (54:44):
Thank you, Tiffany, Thank you Valerie
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