Reverse Mortgages Are Viable Way To Unlock Home Equity?
by Zachary Scott
September 16th 2008
With all of the disarray in the financial markets Seniors are finding out that what seemed like a sure thing (Home Equity Rising) is risky at best.
Seniors fortunate enough to see past all the misinformation about Reverse Mortgages and used this financial tool are now benefiting (peace of mind).
How are they benefiting? Gary and Susan are a good example, three years ago they looked into a California Reverse Mortgage to payoff some credit cards, a small tax lien and remodel their kitchen.
They decided against the HECM Reverse Mortgage because they thought the Reverse Mortgage was way to expensive.
Fast forward three years and now they are losing their home due to foreclosure, because the tradition mortgage they used became way to expensive for their budget (they were living on fixed retirement income), so all of the time and expense that they put in their home was wasted.
Hindsight is 20/20 but the lesson is that waste can come at you from many places and the cost of doing the Reverse Mortgage compared to the tradition mortgage should have had less weight in the decision making process.
The comparison of the cost of a Reverse Mortgage Loan against the possible loss of your home with the Traditional Mortgage should have been considered and not considering this ends up being a high price to pay, so in the beginning Gary and Susan should have made a more informed comparison based on value received from the Reverse Mortgage not on dollar cost.
Everyone involved in the Reverse Mortgage decision needs to look at more than the monetary cost and educate themselves' on the benefits as they are priceless, beware of being penny wise and pound foolish.
You should ask yourself, "Why do I want or need to do a Reverse Mortgage"? You should determine what if any concerns you or your loved ones have, as it pertains to the Reverse Mortgage.
Then call us because we will assist you in getting to a decision basis on the facts and your situation.
Then you will have the basis to see if the Reverse Mortgage is a Viable way to Unlock you dormant Home Equity.