Reverse Mortgage Education and Retirement Solutions for Financial Planners

As a cornerstone educational partner of the Financial Planning Association (FPA) and the first reverse lender on Morningstar’s Advisor Workstation, the Retirement Strategies Division at Finance of America Reverse LLC (FAR) empowers financial professionals with knowledge and innovative tools for optimizing client retirement outcomes.

Learn how we’re helping more advisors and wealth managers than ever strategically leverage housing wealth as part of a comprehensive financial plan.

What’s a Reverse Mortgage?

A reverse mortgage helps homeowners nearing or in retirement gain liquidity and improve their financial roadmap by unlocking stored equity from one of their largest sources of wealth ⁠– their home.

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Cover long-term medical expenses

Purchase the right house for later life needs

Fund legacy and estate plans

Diversify investments

Pay for home renovations

Pay for lifestyle improvements

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Reverse in Action

Improve Cash Flow

Joyce and Jim refinanced their existing mortgage with a new reverse mortgage and eliminated their current mortgage payment.

Age: 71 and 72

Home Value: $2,800,000

Potential Loan Amount: $1,528,000

Paid Off Mortgage Balance: ($1,100,000)

Remaining Cash Available: $414,800

Current Monthly Mortgage Payment: $6,808

Monthly Cash Flow Improvement: $6,608

* Illustration is for financial professional educational purposes only and assumes a borrower aged 71 who resides in CA and an fixed interest rate of 4.9% and financed fees of approximately 0.5% of the home value. Rate quote generated on 8/1/2021. Rates are rounded down to the nearest 0.125% and are subject to change.

Purchasing a Second Home

Linda and Steve live in Oregon and have $250,000 remaining on their mortgage. They would like to purchase a second home in Texas to be closer to family without selling their current one. They have $3,000,000 in investment accounts but would rather avoid selling and paying capital gains.

Age: 64 and 65

Home Value: $1,200,000

Potential Loan Amount: $592,000

Paid Off Mortgage Balance: ($250,000)

Remaining Cash Available: $336,800

* Illustration is for financial professional educational purposes only and assumes a borrower aged 64 who resides in OR and an fixed interest rate of 4.9% and financed fees of approximately 0.5% of the home value. Rate quote generated on 8/1/2021. Rates are rounded down to the nearest 0.125% and are subject to change.

Long Term Care

Emily does not have a long-term care solution and is looking to purchase life insurance with an LTC rider, but the premium is $9,000/year. As an alternative, Emily decides to put a reverse mortgage line of credit on her home to self-fund her needs and avoid a high insurance premium.

Age: 62

Home Value: $450,000

Paid Off Mortgage Balance: $0

Potential Line of Credit: $220,300

* Illustration is for financial professional educational purposes only and assumes a borrower aged 62 who resides in TN and an adjustable initial interest rate of 1.82% (+0.50% MIP) and financed fees of approximately 3.4% of the home value. Rate quote generated on 8/1/2021. Rates are rounded down to the nearest 0.125% and are subject to change.

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Your Clients Deserve All the Pieces

Discover all the ways home equity can be a strategic piece in solving the retirement puzzle.

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Frequently Asked Questions

Below are some frequently asked questions to help clients better understand the option of a reverse mortgage:

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