2 Reverse Mortgage Secrets | Keeping Your House vs Selling and Renting

Kevin Guttman from C2 Financial joins Suzanne Newman on the Answers for Elders podcast to discuss the ins and outs of reverse mortgage. In this segment, Kevin goes through the math to show how it was better for one family to stay in their home rather than downsizing to an apartment. C2 Financial is the third largest mortgage broker in the country and the number one reverse mortgage broker in the country with 1,200 loan officers.Kevin says, "It really is a financial tool. It's a lot more than a mortgage. It's a lot more than a traditional mortgage. With a mortgage, you pay a payment. You stay in your house. Right. Reverse mortgage. You don't have to pay a payment. You stay in your house. You get access to your equity, grows tax free on a line of credit when you access the money by lump sum payments. That's also tax free. So it just gives people flexibility. It just gives them this peace of mind, the safety net, that, okay, I'm going to be okay. I have enough money and not to worry."I had a couple, probably nine years ago now, and they said, we're going to sell our house and rent — And I grew up in a real estate home in Southern California. My dad was a realtor and an investor, and he drilled it into my brother and I to buy a house as soon as you can, you're paying your landlord's mortgage. — And so I said, let me do the math to see if that's a good option for you. So I took the average rent in in our city, which I think for a two-bedroom, two-bath apartment was $1,200 dollars at the time. And it increased by 2% a year. They were 62. I did it for 25 years because a financial planner says plan on living 30 years in retirement. But I did 25 years, and then I calculated the depreciation that they would forfeit on the house if they sold it. I use 4% a year. Wow. That number came up to — are you ready? — $1.5 million."I said, look, if I were you, it's not my money. It's not my house, you do whatever you want, but these are the numbers. You're forfeiting this amount of equity. You're paying this amount of rent. You're giving up control. You're allowing your landlord to determine what he's going to fix if he's going to fix it versus you keeping your home and having access to the equity if you need it. It's a lot better, a lot more security, a lot more certainty if you stay in your home. You do whatever you want, it's your home. But I just want you to understand the math behind it."💠 Connect with Kevin Guttman and C2 Financial at 877.251.9729.💠 Visit C2 Financial's website for research, essays, videos, interviews💠 Ebook: Betty’s Story: A Prudent Senior Citizen’s Guide to A Reverse Mortgage Loan✨ Visit Answers for Elders onlineMentioned in this episode:Chateau RetirementChateau RetirementWalk to End Alzheimer'sLearn more about the Walk to End Alzheimer's at https://www.alz.org/walk.