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.
Every day of our lives we roll the dice. Sometimes it comes up snake eyes and we must be there to answer the call.
Along these lines I like to see prospective borrowers use the mortgage intelligently to increase their disposable income and to use that income in the proper places.
The reason being is the house is going to be the biggest store of cash for any of these individuals. If that is floundered away they could be in a real bind later on when something big comes along.
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.
Some have their home paid off and simply want to add to their income. These folks should use a line of credit. By doing so a very small amount of interest accrues against the equity of the home.
Serendipity of the line of credit is the unused portion of the money line accrues interest and actually grows. This has the net effect of growing the line of credit for use later.
As a guy who gets people these loans I know they are a real benefit. However, they can be misused and I implore you to use them with care.
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.
Every day of our lives we roll the dice. Sometimes it comes up snake eyes and we must be there to answer the call.
Along these lines I like to see prospective borrowers use the mortgage intelligently to increase their disposable income and to use that income in the proper places.
The reason being is the house is going to be the biggest store of cash for any of these individuals. If that is floundered away they could be in a real bind later on when something big comes along.
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.
Some have their home paid off and simply want to add to their income. These folks should use a line of credit. By doing so a very small amount of interest accrues against the equity of the home.
Serendipity of the line of credit is the unused portion of the money line accrues interest and actually grows. This has the net effect of growing the line of credit for use later.
As a guy who gets people these loans I know they are a real benefit. However, they can be misused and I implore you to use them with care.
About the Author:
Live 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.
0 comments
Post a Comment