A reverse mortgage is a government entitlement. The U.S. government has invested tens of millions of dollars to establish the reverse mortgage program. They have limited it to seniors because it is an entitlement for senior citizens. Reverse mortgages provide guaranteed growth in credit lines if a senior leaves the equity in the home, guaranteed monthly income if the senior sets up tenure payments, and the ability to pull the equity out of the home if the senior needs the money now. The additional benefit the government offers is the ability to stay in your home without any additional mortgage payments for the rest of your life.
The best example of another senior citizen entitlement is Social Security.
I hear people say to me every day that reverse mortgages cannot be an entitlement because they cost so much. My answer is always, "How much did you pay in to receive social security?" Entitlement does NOT mean free. Entitlement means that it is of benefit to the person who is getting it.
Entitlements are heavily regulated by the government. If reverse mortgages were a bad thing, the government would not continue to support the program.
Getting seniors to educate themselves on reverse mortgages is the hardest part. What you do not know about reverse mortgages costs you money.
bob
bob@az62.com
www.az62.com
623-214-6663
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