There are many motivating factors for making a large purchase. Perhaps you are just ready for a change. Maybe your current car/appliance/device is acting up. Possibly something is broken beyond repair. Most people first weigh the options between living with what they have, seeking appropriate repair services, and shopping for something new. There are costs, features, and other factors to take into consideration.
However, I find it interesting that there is often a lack of interest in exploring the financial options offered by a Reverse Mortgage. I suspect this may be due to one of three primary factors:
1) Many individuals are intimidated when it comes to talking about their financial situation. It may be because they don’t feel as savvy in this area as they do in their field of work and are worried they are going to be made to feel stupid by a financial professional. Other people may know they have made some mistakes in the past and would rather not lay those out for someone else to see because they feel that they will be judged.
2) While information about Reverse Mortgages is slowly becoming more mainstream, there still seems to be a negative aura surrounding the concept due to misinformation and stories about how these loans used to be administered before additional protections were put into place.
3) Past experience with aggressive lenders has turned many people off from speaking with a loan originator of any sort. They do not want to be put on a call list, barraged with sales flyers, or feel bullied into making a decision before they are ready.
These factors are keeping people from exploring what may be one of the most viable options for supporting their financial needs in their retirement years, which is a shame. When comparison shopping for financial options, it is vitally important to determine if there is a better way to leverage your most valuable asset – your home. It may be that you are in a great situation and should not change a thing. It could be that refinancing your traditional loan to another of the same sort could save you money. But, it is quite possible, if you are over the age of 62, that an entirely new product for you – a Reverse Mortgage – would be the best solution.
All that is needed to provide you with enough loan information to making an informed decision is your birthdate, address, and current loan information (if any). With these three pieces of information, I can provide you with estimates on a potential line of credit, guaranteed monthly cash flow, lump sum payment availability, or a combination that might suit your needs best. If you are concerned about sharing your personal information, a ballpark estimate can even be provided with a January 1st birthday of your birth year, a Zillow estimate you research on your property, and a rounded figure of current outstanding home loans.
Once you have these numbers to consider, you will be in a more powerful position to make the most informed decision possible about how to proceed with your financial plan. There is no obligation to move forward with a Reverse Mortgage, but at a minimum, you can be satisfied that you have done your homework and hopefully put as much effort into shopping for financial options that you did for your refrigerator!
Questions or Comments? Email Don HERE