I have too much money and don’t need a reverse mortgage? What are you thinking about? A reverse mortgage is NOT just for people who need the money now.
A gentleman told me that he had hundreds of thousands of dollars in the bank and that he did not want a LOAN on his home. He also told me that he did not like the fact that the reverse mortgage I was showing him was an adjustable rate with a cap of over 13%. The last thing he told me was that in 1980 gold was at $850 an an ounce and that soon afterwards, the interest rate jumped tremendously. He told me not to tell him that the Treasury bill +1.5% would stay below 6%.
Here was my reply.
I asked him if, in 1980, homes were skyrocketing in price. He responded, “No, they lost value”. So I told him just so he understood…”What you are telling me is that the interest rate was skyrocketing and homes were staying the same price or even depreciating. He responded, “Thats right”.
So in the near future according to his estimates, homes will not rebound in value, and the interest rate will skyrocket. This is the perfect scenario for people who get a reverse mortgage and KEEP the equity of their home in the credit line.
They are protected from that economy. The credit line will be growing at the higher interest rate and it will pass the value of their home in a very short time. It will then continue to grow in value past any valuation of the home. THIS IS PROTECTION FROM THAT TYPE OF ECONOMY.
A reverse mortgage is PROTECTION from radical economies like we are seeking today, and very possibly in the future.
Bob
bob@az62.com
www.az62.com
623-214-6663
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