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Reverse Mortgage for Investment Protection in Texas and New Mexico
Michael Lazar
Contributor, NowItCounts.com

The media has changed its tone on reverse mortgages in recent months in all areas of Texas and New Mexico, namely after new laws passed that protect the homeowners and reduce the chance of foreclosure or eviction.

The new reverse mortgage laws also make these home loans more viable as an investment protection strategy from companies like Legacy mortgage and Legacy Lending Home loans. Bruce Anderson at andersonreversemortgage.com recommends understanding the availability of taking out a one-time lump sum payment, receiving ongoing monthly payments or having access to a line of credit, a reverse mortgage for investment protection is becoming an increasingly favored approach for many older Americans.

A recent USA Today column on personal finance highlighted this emerging theme. One reader wrote in asking retirement contributor Robert Powell whether or not a reverse mortgage was a good idea in lieu of converting their IRA and Roth IRA.

Amongst the numerous considerations was the taxes that the couple would pay. Powell also suggested that the couple could consider using a reverse mortgage for investment protection, namely from the convenient line of credit it offers.

“As for the reverse mortgage, some experts suggest applying for a reverse mortgage with a line of credit as soon as possible,” Powell wrote. “Why might you do this? Having a reverse mortgage with line of credit in place gives you the option of taking money out of your house instead of your IRAs when markets are down.”

Powell was certain to offer some facts, in particular a citation from the Wade Pfau of The American College of Financial Services, which outlines six different ways home equity can factor into a retirement income strategy by using the benefits of a reverse mortgage.

Powell then cited a study published this year from Wade Pfau of The American College of Financial Services, which describes in detail six strategies for incorporating home equity into a retirement income plan through the use of a reverse mortgage.

Powell was certain to make it apparent that retirees should always consult with an experienced financial advisor before making any sort of large move such as taking out a reverse mortgage.

He concluded: “What Pfau’s study did conclude without equivocation was this: ‘A key theme is that there is great value for (people) to open a reverse mortgage line of credit at the earliest possible age,'” Powell wrote. Bruce Anderson of www.andersonreversemortgage.com agree’s with powell’s analysis of the reverse mortgage situation in Texas and New Mexico.

Bruce Anderson of Legacy Mortgage powered by Guild Mortgage – (CRMP) NMLS#237538 -Certified Reverse Mortgage Professional providing seniors with Reverse Mortgages in all areas of New Mexico and Texas!

He does Reverse Mortgages Albuquerque, Reverse Mortgages Santa Fe, Reverse Mortgages Las Cruces, Reverse Mortgages Farmington, Reverse Mortgages San Angelo, Reverse Mortgages New Mexico, Reverse Mortgages El Paso, Reverse Mortgage Midland, Reverse Mortgages Odessa, Reverse Mortgages Texas.

Guild Mortgage Company; Equal Housing Opportunity; AZ BK #0018883; Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act; MA Mortgage Lender License #MC3274; MA Mortgage Broker License #MC3274; Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the N.J. Department of Banking and Insurance; NV Mortgage Company #1141; OR ML-176; Rhode Island Licensed Lender; Rhode Island Licensed Third-Party Loan Servicer; Company NMLS ID 3274. www.nmlsconsumeraccess.org/.

All loans subject to underwriter approval. Terms and conditions apply, subject to change without notice. Guild Mortgage Company is an Equal Opportunity Employer. Guild Mortgage Company 5887 Copley Drive, Floors 1, 3, 4, 5, 6, San Diego, CA 92111; For more licensing information, please visit www.guildmortgage.com/licensing.

*These are brokered loan products. The above material is not from HUD or FHA and was not approved by HUD or a government agency. Consult your tax professional to determine the tax effects of a reverse mortgage loan. Reverse mortgage borrowers must maintain the property and keep current on all property taxes, homeowner’s insurance and HOA dues.

Attn: TEXAS APPLICANTS

“CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A MORTGAGE BANKER OR A LICENSED MORTGAGE BANKER RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING (DOWNLOAD FORM HERE), 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.”