It isn't a secret that that the stock market is down a solid 35% or more. I don't keep accurate tabs on it because I don't have money in the market.
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.
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.
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 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 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.
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.
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.
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.
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 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 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.
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:
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.
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