Reverse Mortgage Business Benefits From Wall Streat Meltdown
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.
I was too smart for the stock market. I put my money in real estate so I'm down closer to 70%. I can't wait for next year.
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.
Now the question I'm asking them is, "what do you hope to accomplish with a reverse mortgage?"
Well, the first thing I need to do is step back and understand the stress they are under.
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.
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%.
I'm not a calculus major, but I can do some basic subtraction. If they are lucky they would get a 4% net return.
Look, the reverse mortgage is not the best investment strategy. Now, if you have a sure fire winner, I'd say go ahead and do it. But who has that. Last person I knew who had a sure fire winner went to jail for insider trading.
Do yourselves a favor.. Go to the kitchen, eat a sandwich and have gigantic beer. This will relax you a bit, and you may soon decide on a better route.
I was too smart for the stock market. I put my money in real estate so I'm down closer to 70%. I can't wait for next year.
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.
Now the question I'm asking them is, "what do you hope to accomplish with a reverse mortgage?"
Well, the first thing I need to do is step back and understand the stress they are under.
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.
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%.
I'm not a calculus major, but I can do some basic subtraction. If they are lucky they would get a 4% net return.
Look, the reverse mortgage is not the best investment strategy. Now, if you have a sure fire winner, I'd say go ahead and do it. But who has that. Last person I knew who had a sure fire winner went to jail for insider trading.
Do yourselves a favor.. Go to the kitchen, eat a sandwich and have gigantic beer. This will relax you a bit, and you may soon decide on a better route.
About the Author:
You may consider using a Texas reverse mortgage to invest. Learn first and read this report. Also, learn details about the Texas reverse mortgage, click here.
posted by Debt Consolidation Loan at
5:32 PM
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