Are Reverse Mortgages are a good financial tool for seniors who do not need cash?

YES

All you have to understand is that a reverse mortgage will turn your home into a cash earning machine. You do not lose title to your home, you do not lose control of your home. When you get a reverse mortgage you have the option of taking the money out, taking payments, or leaving the money in a credit account that you can draw from at any time.

Here is the key. Your credit account will always earn 1/2% more than the cost of the loan. This means that once this interest has paid for the fees involved in acquiring a reverse mortgage on your home (usually 12-15 months) you then have a large credit earning account. That 1/2% can be used to pay property taxes, pay bills, or you can keep it in the account to earn more and more interest every year.

Right now, every senior that does not have a reverse mortgage is missing this earnings potential. The reverse mortgage does NOT stop your home from going up in value. It DOES keep your home from losing more value.

I wish I could have gotten every senior citizen to buy into a reverse mortgage last year. It really bothers me that they lost 20% of their potential interest earning accounts simply because financial advisers scared them away from reverse mortgages.

Bob
bob@az62.com
www.az62.com