Unlocking Home Equity: Navigating the Risks and Rewards of Reverse Mortgages in a Shifting Interest Rate Landscape

Unlocking Home Equity: Navigating the Risks and Rewards of Reverse Mortgages in a Shifting Interest Rate Landscape
Join us in today's episode as we delve into the realm of reverse mortgages. We will analyze essential aspects to take into account, such as how increasing interest rates can influence the loan-to-value ratio and subsequently impact borrowing capacity.

Today, the Reverse Mortgage Professor will shed light on the unpredictability of future interest rate movements and provide valuable guidance on effectively handling mortgages now to potentially refinance later on. Additionally, we will discuss the financial challenges that may arise from pursuing a reverse mortgage.

Podcast Transcript

Welcome to Reverse Mortgage Radio, hosted by legend’s very own Reverse Mortgage Professor, Bruce Simmons. You have so many options with a reverse mortgage, everyone has a different opinion, and the government keeps changing the rules. You need to hear from the first certified reverse mortgage professional in Colorado to specialize exclusively in reverse mortgages, one of few in the state with the letter CRMP after his name. Bruce has the specific training and education you need to understand what you’re buying. Now, here’s your host, Bruce Simmons. So many people will tell you that reverse mortgages are a terrible idea. Don’t do it.

Run for the hills, no. But they can’t tell you why a reverse mortgage is a bad idea.

Why is it so bad? They say, well, I just heard bad things about it. Well, I’m going to tell you why reverse mortgages are a bad idea. And I should know, because I’ve closed over 1,000 reverse mortgages in my career, probably closer to 1,200 or 1,300 if I were to do the exact count. Hi, my name is Bruce Simmons, and I am the Reverse Mortgage Manager for American Liberty Mortgage right here in good old Denver, Colorado. If you have any questions about reverse mortgages or want to learn the actual facts, the pros, as well as the cons, please call me.

You can reach me directly at 303-467-7821, that’s 303-467-7821. And I’m going to tell you things that …

I’ll be straight with you. Actually, you know what? It’s funny. That reminds me of a quick story. Just a quick side note here. I’ve said this before, but just in case you’re a new listener or you hadn’t heard, I once received a loan. I closed a loan because I used the F word with a customer and her son.

Other loan officers wouldn’t, but I did. And what the situation was, is this lady was looking into getting a reverse mortgage and the son was there. And he kept asking the salesman who showed up, the first guy who showed up, said, what happens if my mom doesn’t pay her taxes or insurance? What happens? Or what happens if when she dies, I don’t pay off the reverse mortgage? And the guy kept, oh, that would never happen.

No, no, no. Don’t worry about that. You’ll pay the taxes and the insurance you always have, right? But the son wanted to know what? What would happen? And the guy wouldn’t say it.

So I did. I said, you’d get foreclosed on. Yes, foreclosure is a possibility with a reverse mortgage. But it’s a possibility with any mortgage.

Get over it, right? Anytime you take out a loan, if you don’t pay that loan back, you could lose whatever collateral you posted. And when you take out a mortgage, that’s your home. Now with a reverse mortgage, no payment is actually required, but there are still obligations. Let’s touch on that real quick. What a reverse mortgage is. So a reverse mortgage, and I’m talking about FHA insured reverse mortgages.

There’s a ton of protections for the homeowner and the borrower with this loan program. There’s a ton of protections. But what a reverse mortgage is, the FHA reverse mortgage is a loan that’s specifically designed for people that are 62 and over. It allows you to convert a portion of the value of your home.

And I’m talking the value, not the equity. I ran into that just this week with a customer. Hopefully, he’ll be a customer, but basically, he called and he told me he knew all about reverse mortgages. He’d done a lot of reading on it, and he was under the impression that he could take this kind of weird, but he said, 90% or what was it, 50% of 90% of the equity, something weird like that. And I said, well, let’s see, that would be about 40% and given your age, yeah, we could loan about that probably. But I didn’t pick up that he said equity, and then when I came back and told him how much we could loan him, he’s like, wait, wait, wait, that’s not right. That’s not 90% of 40% of my equity or whatever.

I said, no, it’s not your equity, it’s the value of your home that we base the amount we can loan on. And I’m going to dig into that in a little bit later down the road on this show. But anyways, it’s a percentage of the value of your home that we could loan. And then you have to pay off any existing loans against the home. If you’ve got an existing mortgage, that has to be paid off first. If we could loan you $200,000 and you owe 190 on your existing mortgage, we’re going to pay off the 190 first, and then you’ll have access to the rest, which is $10,000. But that’s the way it works.

If your mortgage is only 10,000, then you’ve got 190,000 available if 200 is the loan amount. So FHA dictates to us, the lender, how much we can loan. And it’s based on the age of the youngest homeowner, the value of the home, and the interest rates. Now, you do not have to take all the money. There’s different ways you can take the reverse mortgage out. You can receive it all as a lump sum with certain restrictions. You’re only allowed to take out a certain amount in the first 12 months unless you’re paying off a big mortgage. If you’re paying off a big mortgage and that takes up the majority of the money, then you can have all that money to pay off the existing mortgage.

You can also receive the money as a monthly stipend or a payment every month that gets deposited in your bank account. That’s where the term, if you’ve ever heard of it, where people say, oh, a reverse mortgage is where the bank pays you instead of you paying the bank. Yeah, that’s what happens. You can also set up a line of credit. That’s the most popular program. There are so many benefits, and we’ve talked about this on recent shows. And you can find out about those shows by visiting my website at reversemortgageradio.net.

All my shows are there from the last seven years, I think, I’ve been doing this program. But you can scroll down and see a little paragraph about what each show is about. And on there, you’ll find, I think, within the last couple of months, I spent a whole show talking about the benefits of the reverse mortgage. But actually, what most people do is a combination. For example, you take out a lump sum to pay off an existing mortgage, and you leave the rest in the line of credit. That’s probably the most popular program.

But I talk to a lot of people, so you owe $150,000, we can loan you $200,000. You say, well, I don’t want $200,000, so you leave the extra $50,000 in a line of credit that’s available to you whenever you need it. And that line of credit has a growth rate to it. That’s just one of the benefits of it. So as long as you live in the home, and you pay your property taxes and your homeowner’s insurance, because it’s still your home, the home stays in your name. So you have to pay the taxes and insurance, maintain the home, live there as your primary residence, and keep your name on title. As long as you do those five things, there are no payments required on a reverse mortgage.

However, we call it a payment optional program, because there are people, more and more people, that are making payments on their reverse mortgages. For example, you have an existing job, you have a job right now, you’re planning to retire in a couple of years, but you can afford to pay $1,000, but because your property taxes just went up by $400 a year, or $600 a year, or $1,000 a year in some cases, and homeowner’s insurance keeps going up, they keep jacking the payment on your loan up. Now you’re having to pay $1,500 when only $800 of it, or $900, is going to principal and interest.

Well, you could afford the $800 or $900 easily. So what you do is you get a reverse mortgage, pay off your existing mortgage, keep the rest of the money in the line of credit, and then you make payments of $800 or $900 or $1,000 a month while you’re still working. What that does is that keeps your loan balance low at that same balance, say, so you’re just paying enough to cover the interest on the loan, but then you also are building more, more, more money in your line of credit. So you’ll have more money available to you when you do actually retire and you might need it. That’s a good option. But the no payment is actually required. You can never, never end up owing more on the home than it’s worth.

Well, technically you could owe more, but you’re not going to have to pay more. So it’s possible that you could end up upside down on this home. If you never make a payment on the loan, the interest that you’re still charged because you’re charged interest on all loans, that interest gets added to the loan balance every month. And I always tell people every month you’re going to see that loan balance getting larger and larger and larger. You have to be okay with that. If you’re not okay with that, don’t do the loan. Just don’t do it.

But most people are okay with it because that’s, in fact, that’s one of the downsides we’re going to talk about in more detail. So we’ll dig into that later in the show. But I’m getting more and more calls from reverse mortgages because of property taxes. If you are getting notice from your mortgage company that your mortgage payment’s going up now because of higher homeowner’s insurance, my homeowner’s insurance was jacked up by $900 this last go around when it just renewed at the beginning of the year. I couldn’t believe that. And I started shopping immediately and I’m going to get a better policy. But also too, now my taxes are up by 400 bucks this year, 400 or 500.

And that’s going to cause my mortgage payment to go up as well. Now I’m not old enough to do a reverse mortgage yet. And even if I were, I probably wouldn’t do it on this home that I’m in right now because it’s not my permanent home. I plan to sell this home and use the proceeds as a down payment and then get a reverse for purchase, which we’ll be talking about in more detail in a future show, that reverse for purchase option. That’s becoming more and more popular now. I’ve got a couple of people out looking for homes and I’ve got one under contract now of people doing that reverse mortgage for purchase option. Okay, let’s go ahead and see about digging into why would I even talk about a reverse mortgage being a bad idea?

Well, I don’t think it’s a bad idea. I think it’s a great idea. Like I said, I’m going to do it myself, but it could be a bad idea for some people depending upon how you look at it. The number one reason or the number one downside of reverse mortgages, people will tell you, oh yeah, they’re expensive. Okay, let’s unpack that for a minute.

Expensive compared to what? Well, a regular mortgage, right? This is not a regular mortgage. No payment is due on this loan, okay? No payment is due. You never have to repay it as long as you live in the home. If you end up owing more on the house than it’s worth, you’re not responsible and you can never pass that debt to your heirs or your estate.

There’s all kinds of benefits if you leave money in a line of credit because the line of credit grows. It’s always available to you no matter what happens with the loan balance or the value of the home, so there’s a lot of benefits to it. The cost are higher than a conventional mortgage, I’ll give you that, but this is not a conventional mortgage. Keep that in mind. The main reason the costs are higher is because there’s something called mortgage insurance.

One and all FHA-insured reverse mortgage loans. Now an FHA-insured reverse mortgage loan is called a home equity conversion mortgage, HECM, or HECM is how it’s worded, or how we pronounce it. So on HECMs, there’s an upfront mortgage insurance premium. That mortgage insurance is what protects the line of credit. If ever you ended up owing more on the house than it’s worth, it protects your assets. So what it does, the way the mortgage insurance works, is if you ended up upside down on the house and you still have money in your line of credit, you can use that line of credit. It can never be closed out as long as you’re paying your taxes and insurance, living there as your primary residence, keeping your name on title, and maintaining the home.

As long as you’re doing that, it doesn’t matter what the value of your home is or what the loan balance is, you’ve got money available in that line of credit that’s available to you. Or if you’re receiving a monthly payment, you’re getting $1,000 a month, and depending on how you set it up, you would still get that monthly payment, no matter what happens to the value of the home. So the only way we can honor that protection for you is with mortgage insurance, because mortgage insurance will pay the lender.

Did you hear me? Mortgage insurance protects the lender. Don’t confuse it with homeowner’s insurance. Homeowner’s insurance will replace your home if it burns down, it’ll replace your roof if you big hailstorm, whatever the case may be. Mortgage insurance is what protects the lender, and you’re charged for that. That’s part of the way it works. You’re paying for the insurance for the lender.

That’s why they can make this a non-recourse loan. So they’re never going to come after your estate or your heirs. If you end up owing $500,000 on the home and your house drops in value and it’s only worth $400,000, as long as you’re living there and paying the taxes and insurance, nothing changes. However, when you leave the home permanently, say you pass away or you have to move to assisted living, then the loan comes due. Your heirs inherit the home and they’re like, oh my gosh, mom owes $100,000 more on the house than it’s worth, there goes our inheritance. Well no, because you have $100,000 in the bank, the bank cannot touch that money. That money is there for your heirs, or if there’s no money left at all, the bank can never come back and file what’s called a deficiency judgment against your estate.

So what happens is your heirs can sign the house over to the lender and walk away. The lender sells the home for whatever they can get for it, and the mortgage insurance pays the difference. So the bank’s not losing any money. The lender does not lose money with reverse mortgages, it’s guaranteed. Because they’re not losing any money, they’re not going to come after any other assets that you own or your estate or your heirs. You’re protected. That’s what the mortgage insurance does.

The mortgage insurance premium is 2% of the value of the home up to the maximum claim amount. This year, the maximum claim amount is $1,149,800, I think. It changed again this year, so they keep increasing it. So let’s say you’ve got a $1.5 million home. We’re going to base the amount we can loan on as if your home were only worth $1,149,000. So that’s what’s called the maximum claim amount. Now most people are going to have a $500,000, $600,000, $700,000 home, and that’s what we’re going to base the loan amount on.

And that’s the amount that the value of the home is what it is at that point. So it’s 2% of that amount. The mortgage insurance, if you’ve got a $700,000 home, that’s a $14,000 upfront closing cost. Now it’s not out of your pocket. It’s rolled into the loan. But still, some people, even though they’re not actually paying for it, they see that number. They’re like, oh my gosh, what a rip off.

Well, no, it’s not a rip off. The benefits you get from it and the peace of mind that it provides, if ever you did end up upside down on the house, or even if the lender went out of business and you’ve got $100,000 in the line of credit, the lender will, the FHA will honor that commitment. That line of credit will always be available to you as long as FHA is around. So those are the benefits of the closing cost. And that’s the big closing cost. There’s also an origination fee. There’s a formula for how we calculate that as well.

And then there’s all the other closing costs, which include the appraisal, title, insurance, closing fee, flood certification, all this stuff. And all of that totals anywhere from about $2,300 to about $2,800, depending upon the value of your home. So you can see, if you’ve got a $7,000, $8,000, $9,000 home, the closing costs are going to be around $20,000 or $22,000, $24,000.

If you’ve got a $400,000 home, the closing costs might be $10,000 or $12,000 or $15,000. Well, not that much, but they’re going to be less. But still, people see that, and they’re like, holy cow. But then if you calculate this out, you’re paying $1,000 a month in a mortgage payment for principal and interest, not including your taxes and insurance, because you still have to do that yourself. You figure you’re going to have that money back in a year and a half, OK? So that’s money, real money, in your pocket, because you don’t have to pay it. It’s money you’re not putting out every month.

It’s a cost savings. It’s a huge thing, and I’m working with a lady now whose husband passed away.

She’s got a … Well, they just increased her mortgage payment to over $1,500, and her income’s only like $2,200. How is she going to pay that mortgage payment and stay in the home, which she really wants to stay in? She’s not, if she has that payment. But with a reverse mortgage, she can stay in that home. So this is a life changer of a loan. And also, too, it’s a fantastic financial planning tool.

You don’t have to be desperate. This lady’s not desperate. She could sell the home if she wanted to, but that’s not what she really wants to do. OK, the next downside of reverse mortgages, and this isn’t always a downside, OK? In fact, in 2020, when rates were real low, nobody mentioned it. But basically, low loan-to-values, or what we call principal limit. In other words, that’s the amount of money we can loan.

Remember, I said the amount of money we can loan is based on three factors. The age of the youngest homeowner, the value of the home, and the interest rates. The interest rate that we use to calculate how much money we can loan you is based on the U.S. Treasury Index for the 10-year treasury. It’s called the Constant Maturity Treasury, or CMT. That’s based on the 10-year treasury plus a margin. Right now, unfortunately, because as interest rates go up, the amount of money we can loan you as a percentage of the value of your home goes down.

Back in 2021, 2020, we were loaning 50% of the value to somebody that was 62. So that’s 5-0%, half the value. Now, somebody that’s 62 is going to get in the low 30% range, in the range of 32 or 33%. So if you’ve got a, what is that, a $500,000 home, what’s that, about $150,000 or so, roughly off the top of my head. I don’t know, my math off the top of my head is not always the best. But yeah, it would be in that range. So it’s not, that’s a downside for a lot of people.

And unfortunately, when rates started going up in 2022, I had people calling me, and we can loan them enough to pay off their existing mortgage, but maybe they only had $10,000 or $20,000 left over. And they were thinking they should have had $50,000 or $60,000 or $80,000 left over after paying off the mortgage. And they said, well, I’m just going to wait. Rates are supposed to come down in 2023.

That didn’t happen. Anybody that tells you what they know, if they know what rates are going to do, run for the hills, because that’s, they don’t know. Nobody knows. Personally, I think rates are going to stay higher for longer than what a lot of people are saying. Unfortunately, I wish, I wish, I wish I’m wrong. I’m praying that I’m wrong. But I think that they are going to be more on the high side for a while.

The Federal Reserve said higher for longer, and we keep getting this employment data that they think is so great, even though it’s misleading, that, oh, yeah, there are 200,000 claims filed for first-time claims for unemployment. Well, there’s more to it than that. But that’s all Fed looks at. Well, not all. They look at all other things, but they’re always in retrospect. They’re never anticipating. That’s why I do think we’re going to end up with a big crash later this year.

And I’m not predicting anything. This is just my opinion based on other people that I’ve listened to and facts that I’ve researched myself. And even if, even if the Federal Reserve lowers the rates, the government is spending so much money, I mean, and they keep demanding more and more treasuries, U.S. treasury notes. So they keep issuing more, and that’s keeping the rate up, okay? And I think even if the Federal Reserve lowers the rates, the U.S. treasury index isn’t going to drop accordingly like we would like it to.

That’s just an opinion, but I’m not predicting anything, okay? Don’t believe me. I very well could be wrong, and I hope I am. But there’s still a lot of people who tell me, well, I’m just going to wait for the rates to come down. I say pay off your mortgage now, and then if rates come down a year from now or whatever, we might be able to refinance you. There’s no guarantee, but it’s a possibility, and we can maybe give you more money. Because if rates do come down, values are going to go up.

And I think that then when rates come down, we can loan you a higher percentage of a higher value. So it’s very possible that we could loan you more money. Now, there’s no guarantee of that, because if rates come down, don’t come down, or they come down but the value doesn’t go as high as we want, then we might not be able to loan it to you. So the first one, the first reason or downside on reverse mortgages is the upfront closing cost. The second problem is the low loan-to-value. And again, real quick, the reason for that is as interest rates go up, the government, the HUD who organized this, they said, well, if rates are higher, the interest is going to accrue on the loan, the unpaid balance, at a faster pace. So we’re going to compensate for that by offering less money up front.

That’s why the rates affect it, because the interest is going to accumulate at a faster pace. Lastly, the last reason that the people give me that they say that’s too big of a downside, I don’t want to do the reverse mortgage, is something called negative amortization. Now, we mentioned this earlier, but basically, every month you’re going to get a statement in the mail. And if you don’t make payments on this loan, if you’re not paying enough to cover the interest and mortgage insurance, because there’s a monthly mortgage insurance premium as well, if you’re not paying that payment every month, which most people don’t, most people don’t want to make any payments on this loan, which is the way it was designed, right? But if you don’t do that, you’re going to get that statement every month or look at it online, and you’re going to see that interest and mortgage insurance piling up on the loan. And that could cause financial stress. And the goal of this loan is to relieve financial stress, not create it.

If that’s going to cause you financial stress, I always tell people, don’t do the loan. And there are a number of people that choose not to do it because of that. I’ve had people tell me no, and then call me back three or four years later and say, you know what, our situation has changed, and we’re not worried about that now. Or they downsize, and they’re like, my kids don’t want this house, and we don’t want to depend on them either. So let’s do the reverse mortgage. We’ll feel more financially secure with the reverse mortgage, even though we know the loan balance is getting larger. And a lot of times, people will explain this.

They’ll say, well, this is a reduced, you’re losing equity in this. Most of the time, you’re not losing equity. You’re just not gaining as much as you would otherwise. So if you’re making your payments every month, and you get that $3.95 principal reduction, well, you just gained $3.95 in equity. However, there’s also appreciation. Odds are, especially in Colorado, even now, homes are still appreciating. They’re not appreciating at 10% or 15% like they were, but they’re still appreciating at 3%, 4%, or 5% in different areas, depending on where you’re at.

And so if you think about, if you’re getting 4% appreciation on a $500,000 home, and you’re paying, let’s say even between the interest and mortgage insurance, you’re being charged 8% on, it’s not quite that high, but let’s say 8% on $200,000. Well, the 8% on $200,000 is a lot less than 4% of $500,000. Your eyes are probably glazing over, your ears are melting, because I’m talking math. And I don’t like math myself, but it’s basic math, 8% of $200,000 is not going to grow as fast as 4% of $500,000. Figuring $500,000 the value, 4% appreciation, compared to 8% interest and mortgage insurance on a $200,000 loan balance. Now eventually, they’ll catch up, and you’ll start being charged maybe 12, 15 years down the road. The amount of interest and mortgage insurance you’re being charged will be more than the growth of the value of your home, but you still, because we’re loaning 35, 40, 45, 50% of the value of your home, you still have a ton of equity left in your home.

Odds of you having no equity left in your home are very, very slim these days. Now back in 2008, when property values dropped by 30 or 40%, people did lose a lot, they were upside down on their house at that time. That’s why FHA made these changes over the last 15 years, to reduce the amount of money they allow us to loan, as well as these other things like financial assessments, so we make sure that you can afford your taxes and insurance and things of that nature. So anyways, those are the main reasons why people don’t do a reverse mortgage, the main downsides with reverse mortgage. Number one, upfront closing costs are higher than a conventional mortgage, even though you shouldn’t compare a reverse mortgage to a conventional mortgage, people do. Number two, the low amount of money that we can loan by comparison to a conventional mortgage again, you shouldn’t do that, but people do. And also the negative amortization.

My name is Bruce Simmons. You can reach me directly at 303-467-7821. That’s my direct line, 303-467-7821. Or visit me online at ReverseMortgageRadio.net, ReverseMortgageRadio.net. If you missed any of this show, it’ll be up there next week. By the middle of next week, it’ll be up on my website. Just click on the upper right-hand corner where it says Reverse Mortgage Radio and you’ll find it.

Hope you have a fantastic day and thank you for joining me, I appreciate it. Call Bruce Simmons today. Ask about his free Colorado Consumer Guide, 303-467-7821 or ReverseMortgageRadio.net. Bruce will come to you anywhere across the front range to make sure you understand how reverse mortgages work. Regulated by DORA, NMLS number 409914, American Liberty Mortgage is an equal housing lender.

Picture of Bruce Simmons

Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

Picture of Bruce Simmons

Bruce Simmons

I absolutely love what I do - working with senior homeowners to help them live a more comfortable, flexible and secure retirement. I have the absolute best customers in the world, and even though I worked in the forward mortgage business for a number of years, I could never go back to doing conventional loans. I'm a 100% reverse mortgage specialist.

5.0

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

Gerald Cook
Gerald Cook
5.0

Bruce did our original reverse mortgage and has also refinanced it twice. He works hard to get the best deal possible while making it as easy for us as possible. When our first refinance received a low initial appraisal, Bruce helped the appraiser find better information and increase the appraised value. He's the best.

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!

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Reverse Mortgage Guide

Reverse Mortgage Guide

Unlock the secrets to a more secure retirement with our exclusive Consumer Guide! Discover if a reverse mortgage is your golden ticket to financial freedom and comfort in your later years. 

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John Addante
John Addante

Left us a 5 star review

My wife and I are retired and had a mortgage that was quite high. We contacted Bruce regarding a Reverse Mortgage and were pleased with his knowledge and experience. He made the whole process very easy and explained everything along the way. Since then, I have had a couple of questions and contacted him regarding the RM. Bruce has always been very responsive and returned our calls within minutes. We couldn't be happier having used Bruce for the Reverse Mortgage and highly recommend him.

Bruce has been serving my interest over and above what one might expect during the whole process of handling my reverse mortgage dating back to 2010 and continues to be available at present whenever a question may arise. He is one of the most reliable, trustworthy and knowledgeable experts regarding reverse mortgages that I have had the privilege to do business with! I would highly recommend Bruce to anyone who is considering a reverse mortgage. Thank you Bruce!

I met Bruce from a referral who just love what he did for them on their Reverse Mortgage, So I contacted Bruce and told him my story and he came up with a great Reverse Mortgage for me and my needs and now I am living good and not worrying about Finances anymore. He had it done in a timely manner. If you are looking for the MAN to help you get the best Reverse Mortgage you need to call him and hope you let him help you.

Bruce is one of the most professional, knowledgeable and efficient experts I have worked ŵith ever in any field. He is fast to answer and always ready to help...and he's a great guy!

I was hesitate about getting a reverse mortgage until Bruce Simons put my mind at rest. He is easy to work with, extremely knowledgeable and efficient. Things get done and he will make sure that you understand every part of the process. I interviewed several other people and he was hands down.....The only choice.

Doing a Reverse Mortgage is a major decision, when working with Bruce he came out personally to go over every thing in detail, there was no pressure to finalize the transaction, I had even put the loan on hold for awhile even though I had locked in my rate, I had called Bruce off and on for a few weeks to ask questions that I had concerns about and he was always available to talk to me. In the end it gave me time to feel comfortable about my decision to move forward with the Reverse. Bruce was very pleasant to work with and would certainly recommend Bruce if you are going to consider a Reverse Mortgage.

Bruce Simmons at American Liberty is one of the best in the reverse mortgage industry. I have known and worked with him for years and he always does a great job. You are in good hands with Bruce and know that he will take good care of you or your loved ones every step of the way.

Best thing I ever did! Bruce Simmons at American Liberty Mortgage is the best. He is always there to answer your questions, and can easily explain the whole idea of a Reverse Mortgage. He takes the time and goes through the entire process with you. It worked out so well for me. Thank You Bruce!

We had researched Reverse Mortgages for 5 years and after hearing about Bruce Simmons and meeting with him, we finally decided to move forward with the Reverse Morgage. It has been over a year now and we are still very pleased with our decision. We think Bruce is very professional, knowledgeable and honest. Thank you, Bruce, for all your help.

I first met Bruce Simmons 2017. I found him on the internet. I was looking for someone local. I called him and explained I was only looking into doing a reverse mortgage, so I did not want him to think this was something I was ready to do. Bruce was friendly, very open about the basics of a reverse mortgage. Bruce came to my home and presented the figures and other details that he could offer. The first thing that impressed me was this was not a hard sell, more of a informational meeting. He was very open about all of the details, and answered my questions without hesitation. What really was evident was he was establishing a relationship with me, and I realized he knew I would not take the loan at that time. There was not enough equity in my home, and I would have to bring money to the table. Although I was not ready to do a loan, Bruce assured me he is always available for questions. Four years later, I finally did do a reverse mortgage, and I couldn't be happier with having done it. I have done away with a mortgage payment which allows me to fund my retirement account with that mortgage payment. We did some much needed landscaping with our cash out transaction, and will move on to improvements inside of the house. My reverse mortgage has a line of credit, and I feel sense security knowing it is there if I need it. Bruce explained that a reverse mortgage is not for everyone, but I feel certain that he paved the way for a strategy that worked for me. I will definitely do a refinance when the time is right. I will check in with Bruce to be sure what the benefits are when I do it again.

I have worked with Bruce Simmons for 15 years. Bruce is one of the best in the industry. He is extremely knowledgeable, kinds and detailed in what he does. His clients love working with him and trust him to help them with their Reverse Mortgage loans. I would recommend Bruce to anyone I know that is thinking about or wanting to do a Reverse Mortgage. He will always take very good care of the customers and make sure their needs are met! Class act and one of the best in the industry by far!