Paul Fiore from AAG
Paul Fiore from American Advisors Group comes into the studio to talk about how getting a reverse mortgage can give homeowners financial security by unlocking the equity of their home while still retaining ownership.
On today’s show discover:
- the facts about reverse mortgages
- get cash from the equity in your home
- how seniors can take advantage of reverse mortgage
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Read the Full Transcript from the Interviewris McKay and I’m glad to have
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you along as we explore and discover
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real solutions to our everyday problems alright how many of you out there for me
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was something called a reverse mortgage
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you know from what I’ve heard it really sounds pretty good having access to cash
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while still owning your home
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sounds great right alright well I want to explore this reverse mortgage concept
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today and find out if this is real
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are just too good to be true and with me in the studio today is Paul Fiori senior
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vice president havel ending with american advisers group which is the
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number one reverse mortgage lender in the country
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he’s here today to help demystify reverse mortgages
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and give us the facts that we all need to know Paul welcome to the show
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thanks chris is great to be here you know before we get started Paul maybe
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could tell us a little bit about american advisers group in
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how you are helping seniors across the country
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sure American advisor was founded in 2004
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we are licensed in 48 States and we are a member of the National reverse
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mortgage lenders Association
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AG only does reverse mortgages it’s the only thing that we do
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we’re currently the number one provider of reverse mortgages in the country
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nyse: listening to fred thompson is a former senator I have to tell you know
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he’s a real advocate for reverse mortgages
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but you know what he’s talking about almost sounds too good to be true right
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because you’re able to get cash out of your home
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make no monthly payments and yet still own your home so Paul I gotta ask a mean
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what’s the catch here have is always the question what’s the catch there is no
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catch
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it alone just like any other loan is just the way the design the reverse
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mortgage was
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for seniors 62 and over to be able to unlock the equity in their home
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without having to make a payment you use the money as you need to and as you
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choose to
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and then when the last borrower leaves the home
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and it’s no longer their primary residence the lone with interest becomes
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do
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in maybe that’s was trippin me up is that it is very different from what I’m
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accustomed to when you talk about loans maybe we can talk about this a little
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bit
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what exactly is then a reverse mortgage mean how does this work
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is designed for the senior in mind most traditional lawns
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are not designed for the seniors to qualify it’s seventy years all 75 years
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old
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this loan is specific for seniors
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to help them age in place are there any limitations Paul
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as to what you can use the money for you can use the money for anything that you
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choose to it is your money
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I wanna go by a bright yellow Mustang I could go to bed p.m. Friday by a pink
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one i mean that you
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the answer choice but you can use the money for everyone are typical senior
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pays off a mortgage that they have on their home they get rid of the credit
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card debt that they may have
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accumulated through the years pass a medical debt and then
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you lies the remaining money they have to enjoy their time in years whether
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that’s taking a vacation buying a car
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you know going on having a nice dinner every once in a while that their loved
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one
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do it you want it’s your money you’re retired you’ve earned it
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that’s what it’s for you mention something here that you said pay offer
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mortgage me what what if you are already paying a monthly mortgage key
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you can still take advantage of a reverse mortgage I don’t quite
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understand that
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absolutely the number one thing when you go to qualify for a reverse mortgages
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you have to have enough equity to qualify okay
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but he may have 25 more years to go twenty years to go on that mortgage
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as long as you have enough equity in your home you will pay off that mortgage
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that you’re making a payment on a monthly basis
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and then whatever’s leftover is yours you mentioned that the reverse mortgage
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was really specifically designed are set up for seniors
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who should consider then a reverse mortgage Minister like a perfect
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candidate
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I think if you’re 62 and over and you’re concerned about your retirement years
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and whether you have enough money
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to help you the next 15-20 years you should consider the reverse mortgage is
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an option
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well I and I agree and as one of the reasons why I want to have you on the
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show today because I do think this is an option that so many people can consider
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me we talk about that a little bit how can someone listening today
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take advantage I love this reverse mortgage opportunity well the first
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thing you want to do is call hehe hah
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a and folks will give that number out just a little bit
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beso to take advantage would you want to do is you wanna call
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you get a free educational video that gives you the basics of the reverse
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mortgage in
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and how it works you must be 62 and over and must own your home is your primary
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residence
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have enough equity to qualify Anne AG professional help you figure out what
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you qualify for and if it makes sense
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and what are some of the advantages and benefits that typically you’re talking
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about with the reverse mortgage
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the number one benefit is you don’t have to make a payment on the money when
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you get a reverse mortgage you unlock the equity in your home
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don’t have to make a monthly payment you continue to own the home as you did
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prior to getting a reverse mortgage
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the cash at your unlocking is tax free you don’t repay the loan until the last
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borrower leaves the home
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the reverse mortgage was designed to help you age in place so it is a
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retirement planning tool
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and you can use the money for however you choose pay medical bills
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pay off credit card debt guarantee mortgage payment to some home
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improvements a renovations or as we said earlier enjoy
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life take a vacation and have that financial security
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you know we have herb saying on the show is that you’re as good as your customers
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say you are there some comments that you could share with us today
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from some of your customers that have taken advantage of the reverse mortgage
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absolutely
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actually if you’re okay with that I’d like to share personal story assured
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sure my parents two years ago got a reverse mortgage really yeah
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and this was not a decision that was made because they were in a destitute
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situation it was
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probably something many people on this program listening have experienced my
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father
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retired in his early fifties because he worked on the docks in Brooklyn
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loading trucks and it took a toll on his back
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so my dad retired and has had since it up nicely in
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over the course of the years we went through the financial downturn and his
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pension is gone cut three different times
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as medical insurance which was fully covered by
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the pension plan he now has to pay into every month they said hey why don’t we
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look at this reverse mortgage because although we’re paying our bills and
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we’re making ends meet
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my dad said I’m worried about having enough money for the next 15-20 years
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and now he has this line of credit that’s available to him whenever he
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needs it
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and my parents who are living a life that they don’t have the worry that they
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had before they took the reverse mortgage that’s awesome that’s great and
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I understand to do that
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former senator fred thompson’s mother actually took advantage of a reverse
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mortgage is well
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she did and what’s really wonderful about it is
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in obvious everyone sees Fred on TV promoting reverse mortgages right to
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write really wonderful as he saw firsthand the benefits avoided a compass
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for his mom
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not only easy just a spokesperson easy the customer and he loves the products
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way speak so well about it well that’s really great
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our folks look if you just joined us we’ve been talking to Paul Fiori he is
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the senior vice president a blending with american advisors group’s which is
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one of the leading reverse mortgage lenders in the country we’ve been
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talking about
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summer the intricacies I love the reverse mortgage in
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Paul may be for someone who’s surge is joining us here can we talk a little bit
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about again what
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exactly is a reverse mortgage in in how can you use it
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absolutely a reverse mortgage is designed for seniors 62 and older
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and it’s a way for them to unlock the equity that’s trapped in their home
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and provide them tax free cash without having to make any monthly mortgage
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payments
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all still owning their home the nice thing is they don’t have to pay back the
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loan
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until the last remaining borrowing lose out on the home see essentially get to
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use your home to stay in your home or age in place as I like to say
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you know I did some research prior to you coming on the show pollen you know I
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have to tell you
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from my standpoint up going on the internet and trying to learn about these
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things it was really
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really confusing so like to come to play a little game here let’s say will call
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myths versus fax
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so can we play on this a little bit I’m ready alright okay to for Smith is
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the lender owns the home when you do a reverse mortgage you no longer on the
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home
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the number one myth that you hear about reverse mortgages people say I don’t
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wanna do reverse mortgage because they don’t wanna sell my house to the bank
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I turn around so you’re not selling your house the bank reverse mortgage is no
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different than any other mortgage
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you continue to maintain ownership irv your home
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I what about this one your children are responsible for repaying the loan
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that’s also a math the home pays off the loan so
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with a reverse mortgage you don’t make a monthly payment when the last morrow and
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be the moves from the home or passes
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it is settled by either the sale on the home
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or the refinance on the home it is not the responsibility
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on the children to pay off the debt I what about this one
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once I get the cash out of my home I have to pay taxes on
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that’s also a myth the money is tax-free is here that everybody
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its tax-free where else you gonna go for tax-free cash
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what about this one the home must be free and clear
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are many existing mortgage so that’s a myth you have to pay off
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the existing mortgage when you get a reverse mortgage but you can do that
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under the Proceeds
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I love the reverse mortgage right correct so you’re gonna qualify for a
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certain amount of money with a reverse mortgage
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we’re gonna take a portion of those proceeds to pay off your existing
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mortgage
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and the remaining proceeds are yours to use you choose got it
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here’s another one only financially-strapped
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people need reverse mortgages the most frustrating method I’ve heard
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have because when you’re in our industry and you’ve written as many reverse
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mortgages as AG has
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you see first hand how this is not for the financially destitute
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that is truly a financial planning tool it is something that people are using
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every single day this one I found fascinating if I
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outlive my life expectancy I can be kicked outta my home
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that is an absolute mess real responsibility you have in your home
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doesn’t matter if you’re sixty two years old or if you’re a hundred and five
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years old
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as long as you pay a property taxes and insurance and you maintain your
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residence
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you stay in your home that’s a shame that there might be hit the people think
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the lender would evict someone who out lives the life expectancy
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congratulations I think we all 10
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like to consider a that’s right exactly soap all we’ve talked about power
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reverse mortgage works and
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being able to get cash out your home so that you can use it to live to enjoy
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whatever it is you want to use it for
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we haven’t really talked about how much you can get
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is that something that we could talk about a little bit probably the number
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one question someone asks me when they call is how much do I qualify for
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okay it really varies upon individual situations
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the older you are the more money are going to qualify for but typically it’s
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anywhere between 50 to 70 percent of the value of your home
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what are some other real benefits and advantages that
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you see that your customers are able to take advantage of with a reverse
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mortgage
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number one thing that I think anybody that debt service mourners will say the
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beauty a reverse mortgage you do not have to make a monthly payment for as
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long as you live in the home
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from you own your own home you are not selling your home to the bank
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the cash that your receiving is tax free you do not repay the loan until the last
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borrower leaves the home
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the reverse mortgage I really try to emphasize is that lets you age in place
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it’s very important people understand this is not alone in last resort
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it is a retirement planning tool and you can get to use the money for our reaches
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need to pay for medical expenses you have to pay off a mortgage
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pay credit card debt mean you some renovations in the house or do some
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other fun things we talk about buying a new car go on a vacation
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enjoy your time in years so that is really reverse mortgages for
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what are some of the other comments that you get to our
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feedback that you get from people that you been able to help this is why I love
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doing what i do. it’s the best part
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my job getting phone calls and letters about how a reverse mortgage help people
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age in place stay in their home get rid of debt be able to do things they always
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wanted a deal
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the so many wonderful story they did bring a couple love letters with me
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to share with you when are the awesome if you could share those greater and a
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letter here from Mary from Arizona
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she wrote us and said we recently finalized a reverse mortgage through
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your first mortgage professional
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he was patient listen to all over concerns he answered every question we
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had a medical confident with our decision
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we now able to do the things we always wanted to do and we’re really thankful
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for this program
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and then and from Virginia she wrote I want to thank you for having me obtain a
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reverse mortgage
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it’s been three months that it had it now and I have peace of mind knowing
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that the money is here when I need it
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I was able to pay down my credit card debt get my car repaired and make home
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improvements
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around the house of folks I don’t know about you but I’m really learning a lot
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here about how a reverse mortgage works in
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basically a reverse mortgage allows you to get the cash out of your home
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make no monthly payments in yet you still on your home
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and we’ve been talking with Paul Fiori he is the senior vice president havel
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ending with american advisors group’s which is one of the leading reverse
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mortgage lenders in the country
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when I want to get back into this Paul little bit why is a
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reverse mortgage let’s say a better option over
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a home equity line it is common for people to
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associate getting money from their home in with a home equity line
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or even refinancing their existing mortgage what we tell people a day AG
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is you’re still having to make a payment every month
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and if you re financing in taking more money out
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your payment may go up see you not solving the problem you’re putting a
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band-aid on so
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getting a reverse mortgage accomplish is exactly what somebody was trying to deal
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tapping into the equity mopping solve a financial need
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and not having to make a payment you know that’s an interesting point Paula
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and something that I think we should reinforce I mean a reverse mortgage
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isn’t just for people in financial trouble right
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not even close I allude to my family early my parents were not
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in financial trouble they were making sure they weren’t going to have
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financial trouble so they were preparing themselves for their retirement years
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now yeah and maybe for someone that just joined as Paul we can talk briefly about
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the advantages and benefits of reverse mortgages again these are tools that can
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be used as part of retirement and something that you absolutely should at
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least understand I think
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and water summer those advantages all the people should understand
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when you get a reverse mortgage you have no monthly payment so for as long as you
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live in your home
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you have access to the money in your house the equity that’s kinda locked up
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today
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then you can jot on a monthly basis you can take lump-sum payments
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but you don’t have a payment that’s extremely important you maintain
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the ownership of your home it is yours it is not the bank’s
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the money that you’re using is tax free
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you don’t have to repay the loan until the last bar or leave the home
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the reverse mortgage is a retirement planning to let you age in place
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and you can use the money for whatever you choose pay off your medical bills
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a credit card debt carried a mortgage payment so many different things but
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actually enjoy your retirement years because I don’t think anybody sat home
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you know at 70 75 years old and said hey I want to work for forty years and then
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just sit home and I’ll be able to enjoy my life I don’t think there was any
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exactly now michael s for sure
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I completely agree with you paul hey I’m gonna put you on the spot here for a
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minute because
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reverse mortgages are something that a few people are a few companies are
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offering
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why should someone consider AG as their source for reverse mortgages
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so aage only does reverse mortgages it’s the only thing that we do
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we’re currently the number one provider or reverse mortgages in the country
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I make sure that education is the number one priority for our seniors
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so when we get on the phone with our client base
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we want to educate you on your situation
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bring every decision maker into the conversation
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let’s let’s come to a conclusion whether this make sense but we really try to
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take the time
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to come to a good decision together we pride ourselves in it
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when you call AG the customer experience he would receive
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is beyond question I do have a letter that I received
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from actually the carrier is the daughters our client and only read
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history and daughters have Marion alvin and and Louisiana
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I like to give high gratitude and high appreciation for the professionalism
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and the personal experience that was provided to my parents throughout this
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process
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help them when I become my parents age but this will be offered to me and my
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siblings
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please continue doing what you’re doing because youre definitely taken some
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financial burden of my parents
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the smile they have on their faces with the home improvements they are now able
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to pursue
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and the medical care they now Ford is just breathtaking to me that’s what it’s
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about
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well if you’re just joining us I’ve been talking to Paul Fiori he is the senior
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vice president
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thing with american advisors group’s which is one of the leading reverse
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mortgage lenders in the country and endorsed by senator fred thompson
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and we’ve really been cut acrylic ball a bit today about these reverse mortgages
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and trying to find a catch because
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you know this all sounds really really good I mean being able to cash out your
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home
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make no monthly payments and still own your home
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but I think it’s important to understand that reverse mortgages are not
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new I mean they’d have existed for some time right
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they’re not new they’ve been around for over 25 years as we know them today
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their federally insured loans there’s no catch
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we’ve been trying to find the catch here there’s no catch it alone just like any
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other loan
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you just don’t make a monthly payment on it and that’s why it’s designed for
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seniors 62 and over
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paul got a little fact I’d for you here I was doing some research for the show
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I i turned up a little-known fact about reverse mortgages did you know that the
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first
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ever recorded reverse mortgage loan was written in 1961
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by the local savings and loan here
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in Portland Maine which is the home of our broadcast facility here
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it was actually made to a weirdo love the town’s high school football coach
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helping her
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to stay in her home despite the loss up her husband’s income is not interesting
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that is something I hadn’t had no idea that is very interesting
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Nadal I neither did I you know a Paul you mentioned that you need to be 62
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years old to take advantage of a reverse mortgage but let me ask you this are you
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ever too old
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to get a reverse mortgage think about as we get older unfortunately our bills
18:17
don’t decrease
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right exactly exactly why would you sell yourself short on the opportunity of
18:23
getting a reverse mortgage to help
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pay those bills home maybe we can just sum up
18:28
what are those advantages and benefits serve a reverse mortgage
18:32
no monthly payments whatsoever as long as you live in the home you continue to
18:36
own it just as you did prior to the reverse mortgage there is no difference
18:39
the money you on lock in your home is tax free
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the reverse mortgage lets you age in place and you can use the money for
18:46
whatever you want you can pay medical bills
18:48
you pay credit card debt you can to home renovations and repairs
18:52
or you have some fun you can go on
18:54
Asian take a cruise boat visit family haven’t seen in a very long time
18:58
you know buy a new car I mean do what you need or want to do with the money
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and that’s the beauty of the reverse mortgage it’s your money
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do what you want I think that’s so important Paul is what this
19:08
really comes down to is being able to have that financial freedom
19:14
to not have to worry about those kinds of financial issues right
19:19
that’s right and you can never discount what it feels like for somebody
19:23
daily to worry about their financial situation
19:26
when you tell someone how much money they qualify for the first thing you
19:29
think about is the dollars but we don’t think about is how those dollars
19:32
impact their life right and how much
19:36
better that life becomes when they have the ability to do more than they were
19:40
doing before
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and I could say a we’ve done our surveys and and this is not me saying it comes
19:45
directly from our customers
19:46
ninety-three percent over AG customers say they were satisfied with the service
19:50
but even more importantly ninety-four percent would consider recommending a
19:53
reverse mortgage with a G to a friend
19:56
so I know that impact people’s lives in a very positive way right
20:00
right exactly Paul unfortunately look we only have a few minutes left here is
20:04
is there anything else that you wanna share with our listeners today
20:08
what is important for everyone to understand is that if you are
20:12
looking at your retirement planning options are save already been retired
20:15
for five years six years seven years in
20:18
the cottages go by your day to day you trying to figure out what your options
20:21
are
20:22
you should never discount the potential avoid a reverse mortgage condyle
20:27
because a reverse mortgage is not alone at last resort
20:31
it is not just for the destitute it is a powerful tool that allows people to
20:35
truly enjoy their retirement years
20:37
and I really encourage you to think about this is an option for you
20:42
to help maybe make changes to your retirement years as opposed to doing
20:46
things you didn’t want to deal
20:47
before you go back to work for a second job before you decide you gonna sell
20:51
your house because you have no choice
20:52
he should pick up the phone or go online
20:56
and research to reverse mortgage with a G because it may be the best decision
21:00
you could have made
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well Paul I think that’s created by said look I wanna thank you for taking time
21:04
out of your busy schedule to come on the show with us today
21:07
a clear up a lot of these questions and misconceptions that we’ve had a really
21:11
set us straight
21:12
as it relates to the opportunities with a reverse mortgage from
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AG so thank you for that thank you so much chris has been a great I’m speaking
21:20
to you
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well that’s all the time we have for today be sure to tune in again next week
21:24
for another great show
21:25
I’m Chris McKay have a great day everybody
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