How to Use the Reverse Mortgage
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.
The truth is the reverse mortgage is not a great decision for all borrowers. Situations are unique and they must be evaluated individually.
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.
Generally speaking most are on social security and some form of pension, but others are still working and planning on retirement.
My concern is the worst case scenario. If someone really ran into a major financial need, like a medical issue, would they be able to handle it?
Lets face it life happens and we have to be ready for it. That means we have to be financially ready.
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.
For most the equity in the house is their largest asset it may be needed for a vital reason. The point is once its gone these folks wont have another money source to draw on.
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.
Additionally, the unused funds in the line of credit will accrue interest for the borrowers favor. The net effect of this is increased borrowing power over time.
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.
The truth is the reverse mortgage is not a great decision for all borrowers. Situations are unique and they must be evaluated individually.
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.
Generally speaking most are on social security and some form of pension, but others are still working and planning on retirement.
My concern is the worst case scenario. If someone really ran into a major financial need, like a medical issue, would they be able to handle it?
Lets face it life happens and we have to be ready for it. That means we have to be financially ready.
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.
For most the equity in the house is their largest asset it may be needed for a vital reason. The point is once its gone these folks wont have another money source to draw on.
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.
Additionally, the unused funds in the line of credit will accrue interest for the borrowers favor. The net effect of this is increased borrowing power over time.
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.. learn about the HECM right here. Also, Have 20 questions answered about the Texas reverse mortgage at this linkright here.
posted by Debt Consolidation Loan at
5:31 AM
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