I understand the stock market may be down a little. What? Did you say 40%? Well I know it is somewhere around that figure.
My money is in real estate. Doesn't that make me smart? That's sarcasm, case you are wondering.
I'm in the reverse mortgage business and my phones are ringing with seniors on the other end panicking about losing their nest egg.
I am by no means a financial genius, but I have to wonder what the reverse mortgage can do to help these folks?
Many of them have seen their entire life saving cut close to in half.
It doesn't make a whole lot of sense to me. I mean they already own the equity to the home. It's there's. What they perceive a reverse mortgage will do for them is convoluded.
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 don't think so. Some are telling me they want to invest the line of credit back in the market. They are citing the Warren Buffet line, "When people get greedy I get scared. When people get scared, I get greedy."
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.
With the math working out the way it does it makes it hard to use a reverse mortgage for investment purposes unless you know something that is borderline illegal to invest in without being accused of an SEC violation.
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. - 15224
My money is in real estate. Doesn't that make me smart? That's sarcasm, case you are wondering.
I'm in the reverse mortgage business and my phones are ringing with seniors on the other end panicking about losing their nest egg.
I am by no means a financial genius, but I have to wonder what the reverse mortgage can do to help these folks?
Many of them have seen their entire life saving cut close to in half.
It doesn't make a whole lot of sense to me. I mean they already own the equity to the home. It's there's. What they perceive a reverse mortgage will do for them is convoluded.
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 don't think so. Some are telling me they want to invest the line of credit back in the market. They are citing the Warren Buffet line, "When people get greedy I get scared. When people get scared, I get greedy."
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.
With the math working out the way it does it makes it hard to use a reverse mortgage for investment purposes unless you know something that is borderline illegal to invest in without being accused of an SEC violation.
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. - 15224
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Prior to putting money into the market or elsewhere using a Texas reverse mortgage please read this guide. Also, learn details about the Texas reverse mortgage, click here.
