Sucky Stocks Increase Reverse Mortgage Biz
I understand the stock market may be down a little. What? Did you say 40%? Well I know it is somewhere around that figure.
Being in real estate I have kept most of my investments safely their, so you know I'm okay. Just kidding, I'm down even more.
With the stock market down as far as it is I'm getting a ton of calls lately from seniors desirous of getting a reverse mortgage.
Now the question I'm asking them is, "what do you hope to accomplish with a reverse mortgage?"
Most of these folks are running scared and are in panic mode.
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.
Many have a sense of the loss of security and are looking to patch the proverbial net up with the reverse mortgage. I understand this, but is it a solid financial patch thought through rationally?
I doubt it. Others have more grandios plans in they wish to take out large sums from their equity to reinvest, either in the stock market or other investments. They believe we are at the bottom.
I have to admit I believe this second person is making a mistake. I mean, what is a good return anyway? 10%, maybe. Well, it will probably cost them over 6% to get the reverse mortgage.
I'm not a calculus major, but I can do some basic subtraction. If they are lucky they would get a 4% net 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.
Please relax a bit with this shakeup in the market. Your equity in the home is important. Use it when you need it. Cooler heads prevail in times like these.
Being in real estate I have kept most of my investments safely their, so you know I'm okay. Just kidding, I'm down even more.
With the stock market down as far as it is I'm getting a ton of calls lately from seniors desirous of getting a reverse mortgage.
Now the question I'm asking them is, "what do you hope to accomplish with a reverse mortgage?"
Most of these folks are running scared and are in panic mode.
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.
Many have a sense of the loss of security and are looking to patch the proverbial net up with the reverse mortgage. I understand this, but is it a solid financial patch thought through rationally?
I doubt it. Others have more grandios plans in they wish to take out large sums from their equity to reinvest, either in the stock market or other investments. They believe we are at the bottom.
I have to admit I believe this second person is making a mistake. I mean, what is a good return anyway? 10%, maybe. Well, it will probably cost them over 6% to get the reverse mortgage.
I'm not a calculus major, but I can do some basic subtraction. If they are lucky they would get a 4% net 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.
Please relax a bit with this shakeup in the market. Your equity in the home is important. Use it when you need it. Cooler heads prevail in times like these.
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Before you go investing your equity into a Texas reverse mortgage please read this guide. Also, learn details about the Texas reverse mortgage, click here.
posted by Debt Consolidation Loan at
6:17 PM
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