Parents will do almost anything to help their children and grandchildren. Ever since they were born, the parents have been responsible for their health and well being. So what happens when a grown child, or a grown grandchild tell them about a problem that they have? Of course, the parent or grandparent step up to try to solve the problem. It's what they have always done. From the first time the child or grandchild went to the bathroom in diapers and had to be changed, to the first steps and first bruise, to pushing a good education on a reluctant child. Parents always know whats best, and always see that child or grandchild as a little boy or girl.
Mom, I let my credit cards got out of control.
Dad, I need to get a house so that I can get married.
Mom, I lost my job and cannot afford my house payment.
Dad, I got behind on taxes and now the IRS is calling me.
Mom, we just found out that our child is sick and needs hospital care.
There are many ways that a child or grand child can ask for help. There are only a limited number of ways that parents can help.
If one of those ways is to get a loan on your home.....WAIT.
Things you should know:
1) A regular mortgage puts your home at risk if you are ever unable to pay the payments. Are you depending on the child or grandchild to pay you back as they have promised they will?
2) A regular loan will always charge you more interest on the debt than a reverse mortgage. If you have any bad marks on your credit the difference can be up to 5% more interest paid annually on a regular mortgage.
3) A regular loan takes you "out of retirment" and puts you back on the clock. Payments are scheduled and therefore you are back on a schedule.
4) A regular mortgage is a one time solution. It does not prepare you for any future emergencies. A reverse mortgage gives you a credit line, that grows over time, and is availble for you when you need it.
Bob
bob@az62.com
http://www.az62.com/
623-214-6663
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