everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins and outs of money we talked about financial issues that could be costing you thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton<br>should we talk about the ins-and-outs of money pretty much everything you having a happier healthy relationship with money my name is Steve Sexton thank you for joining us today in are hundreds of thousands of listeners all over the world so we're very grateful for you all last week we had Jonathan's your roast you know what he's the area one manager for Synergy One Lending is a mortgage experts can I view what's been happening previous in the year and how rate of increase what's happening to the real estate market the result of that and what you can do now to prepare to get a mortgage so you want to check that out go to saving with Steve. Us and look for episode number 78 with Jonathan to road so wonderful episode lot of great information to help you and your finances now you know what we've had a wonderful week we're looking at different topics on this topic came directly from our viewers at sitting with<br>you got your ass if you have a topic you would like us to tackle will be more than happy to do it so please come over there and check it out so this week Studies have shown that with the cost of everyday life inflation many fingers are wondering if they have enough money to last through retirement in her leery of going into retirement community you know what now more than ever because of the Coleman stop something you can't even get long-term care do the cowmen many seniors may not realize this but their home equity as likely a represents a large portion of their net worth and back home owners a 65 + saw their Collective housing wealth increase in fortunately you know and understanding how to strategically text Vishal incorporate that wealth and recover as a retiree income strategy may be the key to protecting and prolong their nesting with the funds they need for long-term care so we have<br>he's less you know what he's going to help us through it's because nearly 20 years of experience in the mortgage industry 13 devoted to one of the few mortgage professionals to earn that known cltc certified long-term care designation has become a leader in the industry by educating people through seminars videos media these guys to go to house welding stores in 2021 he was named the reverse mortgage Game Changer by Yahoo finance I mean he's got things going on to great resource steep I want to welcome you to the show likewise thank you for having me see if you're going to be with you I just want to say this once we let people know that you were coming on the show our view or email just started blowing up before we jump into this I know you were in regular mortgages for a few years and you've been into reverse mortgages for about 15 tell us your little story why did you transition into the reverse mortgage world<br>twenty years ago now and spent the first few years of of my mortgage career doing what most mortgage professionals do and that's Cash out refinance has purchases at that point there was a big subprime market and we were originating those loans as well and I had to make a big decision 2007/2008 when the housing bubble Came Crashing Down what was I going to do right at that point the company that I work for was not able to originate FHA Loans in that left me really unable to perform the business that I've come to know and love and I had to make a very strategic decision at that point and I had start researching reverse mortgages at the time but I was in my young twenties and I had a lot of doubts that I would be able to engage with an older demographic but through my research and through my studying Steve what I found was the reverse mortgage is such an incredible tool to protect and prolong one's retirement and I jumped in head first 15 years late<br>I haven't looked back in retrospect it's the best career decision that I've ever made I've dedicated myself to reverse mortgages and helping folks to live a better and more comfortable retirement ever since and very grateful for making that decision a while back I think it's a noble service you provide the key here is what I really like him looking at your videos as you educate people a lot of people are concerned because they've been doing the same thing for decades and a reverse mortgage is something new I have a lot of questions but I would love for you just to briefly talk about how does a reverse mortgage work you know Steve what we teach more than anything else is the concept of integrating housing wealth into a comprehensive financial plan Steve for 74% of folks that are 62 years old and they're already short of their retirement income needs however a new report came out about a couple months ago there is over 9 trillion dollars in untappd equity<br>folks 62 and older in America for 9 trillion dollars and so that money is dead equity and it's not working for those folks it's not doing it it's just sitting there dormant what we teach Steve is how to incorporate that Equity strategically and tax efficiently with a reverse mortgage loan and use those funds is in most cases the clients largest asset use them proactively instead of reactive and the result is we're able to extend their finances were able to extend the longevity of their investment portfolios were able to allow them to enjoy a better and more comfortable retirement and we're able to make their money last longer because we're leveraging what is their largest asset and that's the equity in their home would it comes to a reverse mortgage everybody's trying to figure out he will it work for me and my good candidate for this new expand on that so people can say hey what why am I fit does it work what there's two different types of reverse mortgage there's a heck of a home equity conversion mortgage notes<br>government-insured reverse mortgage loans and I would say probably 95% of every reverse mortgage originator today is a heck of a government-insured product there's also been a lot of innovation on a proprietary reverse mortgage Daiso private lenders non-government insured are now rolling out reverse mortgage products and most of these loans are jumbo reverse mortgages they are for a higher net worth clientele we can land on a jumbo reverse mortgage up to three million dollars in cash for homes valued all the way up to 10 million dollars reverse mortgages work like this you got to be at least sixty plus you got to own your home and you got to have roughly 50% equity for folks that have pay mortgage one of the biggest benefits is we can replace their traditional mortgage with a reverse mortgage and eliminate the mandatory mortgage payment requirements so by doing that were able to extend their cash flow were able to free up cash flow free up finances and we can also if they have<br>Outback weight to qualify we can release funds to them from the equity in the home and that can be done in a variety of ways folks can choose to take a 10-year pay out which is basically your home send you a check every month until the funds are exhausted there's also a term where you just say hey Steve I need x amount of dollars and I need it for x amount of. Of time okay so I think one of the big things there is at the can't be taken away it can't be reduced so that means if once the foreclosures and all that stuff comes to beer in the market values go down even though somebody got a reverse mortgage today say their equity line is 200,000 and maybe their house is only worth two hundred thousand take that away it's not like a credit card where they redo they can reduce your your your credit limit exactly NSYNC back Steve 2008-09 when the housing market crashed you had a lot of folks a lot of these folks were over 60 they had traditional home equity lines of credit<br>they thought they had access to a hundred $200,000 or more in some cases in the back came back and said you know what no we're not going to let me borrow that money anymore and that wrecked a lot of people's retirement plan that cannot happen with reverse mortgages because the line of credit is federally insured it is guaranteed you're also Steve able to borrow on today's market value in a booming housing economy right now I mean there's bidding wars on homes you know he is in some cases homes don't even make the market and there's a bidding war already and so is values are soaring you can take out a reverse mortgage line of credit today and lock in today's value you and I were talking about this before the show came on its in all likelihood values are going to at least level off if not go down so too is the market the economy and so it's a great hedge against future Market correction finger to lock that line of credit in and do it at today's value not future values and know that that. He was guaranteed see that's what this is great information we're going to take a quick break<br>I stick with this we got to pay some bills will be right back with more Stevens less more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the in an ounce of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton truly thank you for tuning in appreciate you letting your friends family and Associates know about the show<br> you asked if you're enjoying the stories of helpful information inside of saving with Steve then I encourage you to subscribe to our YouTube channel Apple play in Spotify Channel hey check out a few that you can't help radio DBS Radio talk radio New York City e360 TV Las Vegas TV networks all these networks are dedicated to empowering you to live a life of Financial and personal freedom also you can follow us at Facebook at sitting with Steve sex if you like some more financial tips so here we come back with Steve's last we've got a slew of questions here so we're just going to get started there's pros and cons to anything what's the downside of reverse mortgage what's the concert you know I think it really starts in the beginning it's all about suitability and so when somebody comes to us Steve and they say hey I'm interested in learning about a reverse mortgage theirs first and educational Journey that we need to take them on we're also trying to figure out ourselves are they a suitable first question we asked you was how long do you want to live in the home for if somebody were to stay 3 years 4 years it's probably not a great fit and so there would be a downside.<br> I think the barrier to entry the cost to take out a reverse mortgage loan is probably too great at that point if you're only going to be in the house for a few years this is a long-term solution to living a comfortable retirement and doing so aging-in-place in the comfort of your own home another downside and it's not necessarily A downside it really depends on what your Viewpoint of this is reverse mortgages are loans that had negative amortization which means that if you make no payments and see if you can treat a reverse mortgage no different than a traditional mortgage if you want to make payments you certainly have the right to be able to do so but a lot of folks choose not to make monthly mortgage payments and if you choose not to make a monthly mortgage payment your balance each month is going to increase a lot of folks are fearful of that they're fearful of their balance increasing what we teach these is what the home is a low growth potential asset if you have a financial advisor that is managing your money and that money as well Diversified it's in the right Market it's<br> that's it well chances are that advisor is using you you know 7 to 10 to 6 to 10% returns right now his story Glee the home appreciates at 1 to 4% per year and so we teach use the home equity first instead of using the retirement assets first and combine all of your assets but a lot of folks are a little hesitant because they're fearful of their balance rising over time and look at that point you have to become educated you got to become empowered and ultimately you got to make the best and most astute financial decision for you let's clear some of the information with reverse mortgage you cannot lose your house because you have a reverse mortgage that that's a huge misconception and if we have time to Eva a quick backstory so prior to 2015 if you were over 62 you had equity in your home and you had a pulse you had blood pumping through your body you could get a reverse mortgage there was no credit qualifications there was no income qualifications and so what the result was you had a lot of folks that were<br> are ready of destitute they had already run out of money and they were using the reverse mortgages as a last resort the reverse mortgage just prolong the inevitable it prolong their ability to remain in the home but it was inevitable they were going to lose their home because they just couldn't afford it didn't have enough income to pay the taxes and the insurance those are the qualifications of the reverse mortgage got to pay your homeowner's insurance you got to pay your property taxes need to maintain the home if you default on any of those requirements you will lose your home but that's no different look if you have a regular mortgage or even know mortgage and all Steven you don't pay your taxes you're going to foreclose on you're going to lose your home but by having a reverse mortgage you cannot lose your home simply by having the lump what happens for a we've got the market screaming up right now with the housing market have been want to buy and all the supply line issues I get a reverse mortgage it's a $600,000 reverse mortgage the market goes down in my house is actually worth $300,000 and I pass<br> what do I have to do my heirs have it's a great question so all reverse mortgages are non-recourse loans non-recourse means there's no recourse and there's no debt pass to your heirs or you restate that they have to come out of pocket and pay so at the time of your death your heirs are going to have the option to buy the house for 95% of the appraised value at the time they can also walk away if there's more owed on the reverse mortgage than what the home is worth they can walk away and be non-recourse component kicks Auntie have them reverse mortgages have government reverse mortgage insurance on them that insurance policy that is on all these reverse mortgages will settle how much like gap insurance for your car seat for you total your car you owe $20,000 the insurance company check for 15 that's $5,000 Gap in Reverse Mortgages work the same way so you can have the Peace of Mind of knowing that you can take a reverse mortgage child and if at some point there is a market correction and you do owe more than what the value of the home is at the time of death<br> can simply walk away or they have the option to buy back at 95% of the reasons why I asked that is back in 2008 one of my clients who had a reverse mortgage passed away and the reverse mortgage is actually like $450,000 and after 2008 that house value when they appraise it with a 195,000 when the air is were looking at just dumping it saying hey fine but when I went to message you can get a house for $195,000 and let it grow and then went oh my and basically they bought the house for 195 and so do a few years later for twice that much so they were in a wonderful position when that occurred and it's a great option one of the questions I do have is this in this world you have divorces okay and this question is come up probably I probably have 30 of these questions divorce rates in California and 50% if it's a second divorce in their older than 55 it's at 72% what's the effect of reverse mortgage and somebody<br> you can come if there's a I'm going to say gray hair so we're divorced I love that question Steve so we have a partnership with the idsa The Institute for divorce Financial analysts we're working with financial analysts expect she lies in senior divorce and we're helping them use reverse mortgage loans to navigate their client's Financial woes while they're going through these divorces and so were using the reverse mortgage as a tool to divide the marital home and end-use that equity for one person to remain in the home while the other leaves the hot we're also using it Steve we just had a case like this not too long ago where the couple sold their home for $300,000 they both put down $150,000 on two separate $300,000 homes and they bought those homes with a reverse mortgage you can actually use a reverse mortgage loan Steve to purchase a home in retirement most folks don't even realize that most Realtors don't realize that I'm very effective strategy<br> one that we are deploying quite a bit as we work through the institute for divorce financial analyst to help their clients ease the financial difficulties of grey or silver divorce recent lot of people are in situations like in States like California Illinois New York where the cost of living's got pretty expensive there only options are to selling down side or move out-of-state or they look at getting that reverse mortgage just a free of that money that they need to make their life work I think what you do is Noble I think what you're doing right now with educating everybody is very very important and is needed and that's sad we're about to wrap up our segment with you could you tell us how people can get ahold of you how they can go get your videos so they can get educated and get the help there looking for appreciate the opportunity my firm's name is the Stephan J / groups to Stephen Jay Sledge group we are the reverse mortgage division for Primary Residential Mortgage we have branches in all 50 states throughout the<br> you can reach us by phone or number is 410-814-7575 to 410-814-7575 or online at the house group. SL ESS group.com on YouTube is where all our videos are as well and we have a lot of educational content on there if you just go on YouTube and search the Stephan J / group you pull up our content if you get there I'd appreciate if you'd like the videos and if you want to be notified when we put out more content just subscribe and hit the bell at the top and every time we release a new video you'll get to know you folks the first thing at learning anything new is getting education but got a great resource at the slush group.com so you want to go out there and look at it if you're looking to get a hold of Steve definitely go to that website you for being on the show I give us wonderful information for a listeners that can make a difference in their life again if you guys want to get a hold of Steve's last you know where to do that he's already giving you the information next<br> are we talking about a mid-year Financial check-up want to stick with this we're going to be right back with more shaving with Steve more expert advice for having a happier relationship with money still to come on the saving with Steve show<br> don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the in an ounce of money Hills financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money so if you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that's saving with Steve. Us saving with Steve. Us will see you soon<br> welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton we talked about the ins-and-outs of money pretty much everything out of the sun's relates to you having a happier or healthier relationship with money I want to think our affiliate at you can't help radio bvs radio talk radio 24/7 wonderful guys wonderful company they're great people they've been helping distribute our program and yes you know what were you do well over 500,000 loser lose 600,000 listeners on a monthly basis to were very very excited for that if you'd like to you know get guest background stuff behind the scenes you can always go to saving with Steve. You will we will provide that information for you you could check out all the old shows check out our show on Spotify Google play YouTube they're all there you know what<br> also some special help of tents that cost of saving with Steve shorts all designed to help you by giving my best advice to help you retire smart weight annual Wellness check-up are great ways to keep tabs on your health and ensure you're making the right choices but when it comes to things like your personal well-being annual Checkers are only physicals you know what what about your finances as well you know what I think it's a wonderful thing that you be should be thinking about and you know with that you know just like a dentist appointment at your doctor's appointment you know what put time on your calendar to check on your finances cuz it's essential to so I'm going to give you a number of little chips things you can do to get yourself on track on a mid-year Financial check up now first of all you know what double check I like to get up some people called subscriptions<br> fried you okay use your monthly credit card bills and bank statements to evaluate everything you paid for from the prescription to the subscriptions to that wine delivery newspaper the product boxes with food prep Services the holeshot ask yourself hey do I still want to pay for those services or something because they give you that trial. And the next thing you know you're paying $99 a month or $8 a month or whatever it all adds up get rid of you haven't used in the month get rid of it okay big steps were cleaning up your expenses by unsubscribe for things that drain your wallet so get rid of them next negotiate your cable and internet bills hey inflation is things are costing me people more money take a look at Netflix they lost hundreds of thousands of streamers what do you think they're doing they're finding ways to keep<br> people on the site by reducing your car soap brush up on your new know she can still save yourself some money by reaching out your cable internet provider new choir about lower monthly bill what might sound like a waste of time you're likely be surprised what the company will do to keep your business this is especially true for competitors in Town's if you can agree on a price you could always switch providers entirely get a lower rate and maybe it's time to cut the cord get rid of your cable or Internet altogether take the time to review your finances can quickly help you realized where your priorities lie when it comes to your Belgian pump up your savings right now and your financial checkups to value your retirement and Daryl saving fun it's time to step up your saving great game by at least 1% and do the same thing for you General savings think about this the clothes that you can get your 401k<br> maximum contribution on an annual basis put you in a position where you're closer and closer to being in a position to have the option of rear of working which is retirement you know what there's some added thoughts are what about increasing your savings rate by 1% every two months until December that's a 3% increase so the more you save the less emergency yes you said you're going to have less stress you're going to have to think about that next shop around for your insurance in the most out of your health insurance you know it just like your cable and internet without many of us forget to that we don't have to have to stick with the same company and you can always shop around for a better price is typically you just switch out Auto and homeowners insurance mid-year than it is health insurance but think about it if it's one of those companies are considered<br> are companies because they insure you because you had some tickets are accidents hey if you don't have any tickets are accidents in the last three years there's a number of companies like Wawanesa Mercury Automobile Club Progressive go shop around on his shoes going to give you the best rate for the insurance for the biada or your home or your renters when it comes to health insurance you take advantage of it you might not be able to switch right now mid-year conference September time okay hey let's take advantage of your annual primary doctor visit there especially if they're covered you should also keep up with your cover jewson's to the your FSA or your HSA so you can make sure those expenses are covered if you decide to switch otter homeowners insurance policies are you want to double check the fine print to see if there's any cancellation fees my policy all that guy to stop now consider just your tax withholding if you had some<br> New Life Changes such as you got married you're having baby or you know one of those babies are out of the household in the house. Look at your tax situation you could be in the situation where you can deduct more which means you'll get more back at the end of the month which means more money in your pocket to pay off Bills take care of things like that when it comes to your tax refund your goal should not be to receive a refund which means you're paid up and taxes you owe and you did over pay the government during the. Of time resulting in a refund so think about this many people want to get that tax refund but it's a little naughty think about it you pay over pay the government every single month for 12 months bill on a farm in February 28th April or March to get your money back and there's no interest it's not sit down with your tax professional figure out exactly how it how many deductions you need to have her how much you have to withdraw so you can either so you might hate I get 30<br> dollars back or I have to pay $30 that's great it's better than getting back $5,000 on your tax return and you didn't make any money off at at the end of the year you know what also take a second look at your debt replacement flame in for the average American household consulate working to pay down debt is a reality but not everyone gets aggressive about debt repayment by creating a plan if you've already created one take a few moments to check in on how you're doing I want to thank you for joining us here on saving with Steve again I want to thank our Affiliates you can't help right now BTS Radio AM FM 247 your wonderful if you'd like to check out Jack get gas kiss and all that stuff Joe to saving with Steve. You ask go to YouTube to your shorts your loss and help you get the information you need to retire smart I want to thank you all for joining us here right here on saving whiskey stay safe stay healthy<br> thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guest or sponsor visit saving with Steve. Us that's saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton<br>