Common sense test....
Do you know if the housing market is going to go up over the nest 10 years?
If you answered yes, then no need to read any further.
If you answered no, congratulations, you passed the common sense test. Common sense says that by studying the past, you can tell that a 10 year period is too short a time to guarantee growth. You NEVER know what will happen.
So what do you do if you can get guaranteed growth of the homes value over time?
Take it. A reverse mortgage, for those who own their homes and do not need to take any money out of the equity, establish a credit line that grows each year.
The interest rate on the growth of the credit line is ALWAYS 1/2% MORE than the interest on the loan. That means that in todays market the interest rate is just above 4%, but in a bad market that interest can jump to 6 or 7%.
Imagine knowing that your home value is increasing, because your credit line is increasing, even though the housing market has stayed flat, or even lost money.
bob@az62.com
714-331-1486
No comments:
Post a Comment