George Vrban, a name synonymous with expertise and trust in the reverse mortgage industry, reached a personal and professional milestone by obtaining a reverse mortgage for himself.
Many will read the headline and feel sorry for George. After all, what tragic circumstances would drive the nation’s top reverse mortgage originator to leverage his hard-earned equity?
But George, who lives in St. Augustine, FL with his lovely wife, Michele, has long advocated for the use of reverse mortgages not just as a necessity but as a strategic financial planning tool. Having recently celebrated his 62nd birthday—the minimum age to qualify for a reverse mortgage, he had the opportunity to lead by example.
I’ve known George for 15 years and can assure you this action was not an act of desperation. It is one element of a long-term financial plan that includes tax strategies and Roth conversions.
You see, George is simply following in the footsteps of other notable reverse mortgage practitioners like nationally recognized speaker and reverse mortgage author, Harlan Accola. Harlan is National Reverse Mortgage Director at Movement Mortgage, and in 2022, he obtained his own reverse mortgage for many of the same reasons as George. They both know what many in the financial planning community are beginning to learn—obtaining a reverse mortgage at age 62 creates a more efficient retirement outcome.
“A reverse mortgage is often misunderstood as a last resort for financially destitute seniors. However, that perception is far from accurate,” said George Vrban. “My wife and I are fortunately in a comfortable financial position, yet we chose to take out a reverse mortgage because of the flexibility and security it offers. It’s a proactive measure, enabling smarter wealth management and prudent retirement planning.”
What is a Reverse Mortgage?
Reverse mortgages allow homeowners aged 62 and older to convert a portion of their home’s value into cash, monthly payments, or a line of credit. The homeowner remains in the home without a required monthly mortgage payment while maintaining responsibility for property taxes, insurance, and upkeep. The loan is typically repaid when the homeowner sells the home, moves out, or passes away.
What are some strategic advantages?
Today’s reverse mortgage borrowers leave unused proceeds in a secure line of credit (LOC) that grows at the same rate as borrowed funds. Therefore, borrowers who don’t need funds today will have increased capacity to pay for financial shocks later in retirement like home care. For this reason, it makes sense to obtain a reverse mortgage as early as possible.
While monthly payments are not required, reverse mortgage borrowers have the option to make voluntary payments to reduce their loan balance and increase their line of credit which may also provide a possible tax deduction. Therefore, some homeowners will make large windfall payments once every 3 or 4 years and then itemize on their tax returns in those years.
Getting a reverse mortgage early also provides a buffer against sequence of returns risk. Having access to home equity allows retirees to avoid selling investments during market downturns. This will help them to preserve their retirement portfolio during the crucial early retirement years when negative returns can have the most damaging impact.
George has been instrumental in guiding thousands of seniors through the process of securing their own reverse mortgages, enhancing their financial freedom and quality of life. Clearly his decision to obtain a reverse mortgage underscores his belief in the product’s advantages.
“It’s about walking the walk,” George explained. “How can I advocate for something if I don’t fully embrace it myself? I’ve always believed in the strategic use of reverse mortgages, and now I can share personal insights and firsthand experience with my clients.”
George Vrban is a Movement Mortgage Retirement Mortgage Professional (RMP) based in St. Augustine, Florida.
Dan Hultquist is a co-founder of REVERSE plus, and the author of “Understanding Reverse,” widely considered an essential resource for both consumers and mortgage professionals
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