Well, I don't think I have to announce it at the top of my lungs, the stock market is down a ton since this time last year.
My money is in real estate. Doesn't that make me smart? That's sarcasm, case you are wondering.
Being a reverse mortgage loan officer you can imagine a bunch of older folks are calling me lately inquiring about the reverse mortgage as some sort of stopgap.
I am by no means a financial genius, but I have to wonder what the reverse mortgage can do to help these folks?
Many of them have seen their entire life saving cut close to in half.
It doesn't make a whole lot of sense to me. I mean they already own the equity to the home. It's there's. What they perceive a reverse mortgage will do for them is convoluded.
Most tell me they want it for security purposes. What does that mean? They've lost a bunch of money in the market. Is having a bunch of money in a line of credit really going to help them?
I don't think so. Some are telling me they want to invest the line of credit back in the market. They are citing the Warren Buffet line, "When people get greedy I get scared. When people get scared, I get greedy."
I don't really agree with this person either. They, more than likely will be charged 6% on the money the take out (plus closing costs). And the average can't be higher than 10%.
The math doesn't work out very well, even if they get 10%. Less than a 4% return.
With the math working out the way it does it makes it hard to use a reverse mortgage for investment purposes unless you know something that is borderline illegal to invest in without being accused of an SEC violation.
The best thing to do is to have glass of milk and cookie right now. Take a deep breath thereafter and sleep on it. Tomorrow, if you still want to get a reverse mortgage, call me.
My money is in real estate. Doesn't that make me smart? That's sarcasm, case you are wondering.
Being a reverse mortgage loan officer you can imagine a bunch of older folks are calling me lately inquiring about the reverse mortgage as some sort of stopgap.
I am by no means a financial genius, but I have to wonder what the reverse mortgage can do to help these folks?
Many of them have seen their entire life saving cut close to in half.
It doesn't make a whole lot of sense to me. I mean they already own the equity to the home. It's there's. What they perceive a reverse mortgage will do for them is convoluded.
Most tell me they want it for security purposes. What does that mean? They've lost a bunch of money in the market. Is having a bunch of money in a line of credit really going to help them?
I don't think so. Some are telling me they want to invest the line of credit back in the market. They are citing the Warren Buffet line, "When people get greedy I get scared. When people get scared, I get greedy."
I don't really agree with this person either. They, more than likely will be charged 6% on the money the take out (plus closing costs). And the average can't be higher than 10%.
The math doesn't work out very well, even if they get 10%. Less than a 4% return.
With the math working out the way it does it makes it hard to use a reverse mortgage for investment purposes unless you know something that is borderline illegal to invest in without being accused of an SEC violation.
The best thing to do is to have glass of milk and cookie right now. Take a deep breath thereafter and sleep on it. Tomorrow, if you still want to get a reverse mortgage, call me.
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You may consider using a Texas reverse mortgage to invest. Learn first and read this report. Also, get the nitty gritty about the reverse mortgage, click here.
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