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.
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.
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.
Well, the first thing I need to do is step back and understand the stress they are under.
But the question of using a reverse mortgage as some sort of damn to the financial mess or financial safety net doesn't make sense. Not at this point, at least for the reasons at hand.
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 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 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%.
The math doesn't work out very well, even if they get 10%. Less than a 4% 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.
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.
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.
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.
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.
Well, the first thing I need to do is step back and understand the stress they are under.
But the question of using a reverse mortgage as some sort of damn to the financial mess or financial safety net doesn't make sense. Not at this point, at least for the reasons at hand.
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 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 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%.
The math doesn't work out very well, even if they get 10%. Less than a 4% 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.
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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5:33 PM
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