Stock Market Running Seniors to Reverse Mortgage
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'm a bit dumbfounded, because I simply can't understand how the reverse mortgage can be used to somehow change or plug up some financial hole.
Most of these folks are running scared and are in panic mode.
What really is to gain by accessing the equity to their homes, at this point, for a reverse mortgage? The equity is theirs already. Why crack open this can if it isn't absolutely necessary?
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 have serious questions about this logic. Other, more panicked or more aggressive potential clients (I'm not sure which) believe the market has seen its worst days are looking to plant reinvest their home equity into the market.
Our 2nd group may be making a mathematical mistake. After all, how good can the investment actually be in these times? Just to take the money out it will more than like cost them six percent per year.
Okay, ten percent minus six percent equals four percent return. This is if they are doing really well.
The facts are that this is not a great time for investments. I suppose if you have real ringer that can work, but for the most part these are very precarious times for investors. Many of the big guys are sitting it out.
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.
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'm a bit dumbfounded, because I simply can't understand how the reverse mortgage can be used to somehow change or plug up some financial hole.
Most of these folks are running scared and are in panic mode.
What really is to gain by accessing the equity to their homes, at this point, for a reverse mortgage? The equity is theirs already. Why crack open this can if it isn't absolutely necessary?
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 have serious questions about this logic. Other, more panicked or more aggressive potential clients (I'm not sure which) believe the market has seen its worst days are looking to plant reinvest their home equity into the market.
Our 2nd group may be making a mathematical mistake. After all, how good can the investment actually be in these times? Just to take the money out it will more than like cost them six percent per year.
Okay, ten percent minus six percent equals four percent return. This is if they are doing really well.
The facts are that this is not a great time for investments. I suppose if you have real ringer that can work, but for the most part these are very precarious times for investors. Many of the big guys are sitting it out.
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.
About the Author:
Prior to putting money into the market or elsewhere using a Texas reverse mortgage read this report. Also, learn details about the Texas reverse mortgage, click here.
posted by Credit Counseling at
6:25 PM
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