Even though people calling me know I make money from them using me to get a reverse mortgage they still want me to tell them they are making the right decision.
Im of the opinion that the reverse mortgage is purely situational. It is not something that one should go blindly into.
The reason most are calling me is that money is extremely tight. There are the exceptions who are looking for investment money but most need the money.
The typical MO of my customer is a fixed income through SS or retirement. A few are still working but looking to be done with that.
One of my big concerns for these folks is they will have the money available later on in the just in case scenario of a huge financial issue.
As we get older big medical needs are more likely, not less. As mature adults we must be prepared.
I know most of these folks will be getting the reverse mortgage with me. I simply advise that the funds are used in a prudent manner. Increased disposable income tends to get spent.
These borrowers have worked very hard to build up the equity in their homes. It is their nest egg, and if it is squandered what money will be there for them if they really need it?
The point here is to use it as a last resort. If it is possible to keep making mortgage payments on a current mortgage it may be best to keep doing so and wait to pay it off with a reverse mortgage.
For those without mortgages who want to use the reverse as supplemental income I advise using the line of credit option. This option allows the borrower to take out money as needed and interest only accrues on used moneys.
A real benefit of this LOC is it actually grows over time and benefits the borrowers. Any unused money in the LOC gains interest for the borrowers favor.
The whole point here is to be conservative with your biggest asset. If you need to take a trip or use a bit for fun money, do so. Life is for living, but use the rest frugally.
Im of the opinion that the reverse mortgage is purely situational. It is not something that one should go blindly into.
The reason most are calling me is that money is extremely tight. There are the exceptions who are looking for investment money but most need the money.
The typical MO of my customer is a fixed income through SS or retirement. A few are still working but looking to be done with that.
One of my big concerns for these folks is they will have the money available later on in the just in case scenario of a huge financial issue.
As we get older big medical needs are more likely, not less. As mature adults we must be prepared.
I know most of these folks will be getting the reverse mortgage with me. I simply advise that the funds are used in a prudent manner. Increased disposable income tends to get spent.
These borrowers have worked very hard to build up the equity in their homes. It is their nest egg, and if it is squandered what money will be there for them if they really need it?
The point here is to use it as a last resort. If it is possible to keep making mortgage payments on a current mortgage it may be best to keep doing so and wait to pay it off with a reverse mortgage.
For those without mortgages who want to use the reverse as supplemental income I advise using the line of credit option. This option allows the borrower to take out money as needed and interest only accrues on used moneys.
A real benefit of this LOC is it actually grows over time and benefits the borrowers. Any unused money in the LOC gains interest for the borrowers favor.
The whole point here is to be conservative with your biggest asset. If you need to take a trip or use a bit for fun money, do so. Life is for living, but use the rest frugally.
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For those living in Texas.. get a great 12 page reverse mortgage guide here. Also, this site is a great q&a abouth the HECM in Texasright here.
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