Reverse Mortgage Business Benefits From Wall Streat Meltdown
I understand the stock market may be down a little. What? Did you say 40%? Well I know it is somewhere around that figure.
Being in real estate I have kept most of my investments safely their, so you know I'm okay. Just kidding, I'm down even more.
With the stock market down as far as it is I'm getting a ton of calls lately from seniors desirous of getting a reverse mortgage.
I'm a bit dumbfounded, because I simply can't understand how the reverse mortgage can be used to somehow change or plug up some financial hole.
Most of these folks are running scared and are in panic mode.
It doesn't make a whole lot of sense to me. I mean they already own the equity to the home. It's there's. What they perceive a reverse mortgage will do for them is convoluded.
Many have a sense of the loss of security and are looking to patch the proverbial net up with the reverse mortgage. I understand this, but is it a solid financial patch thought through rationally?
I don't think so. Some are telling me they want to invest the line of credit back in the market. They are citing the Warren Buffet line, "When people get greedy I get scared. When people get scared, I get greedy."
Our 2nd group may be making a mathematical mistake. After all, how good can the investment actually be in these times? Just to take the money out it will more than like cost them six percent per year.
The math doesn't work out very well, even if they get 10%. Less than a 4% return.
The facts are that this is not a great time for investments. I suppose if you have real ringer that can work, but for the most part these are very precarious times for investors. Many of the big guys are sitting it out.
Do yourselves a favor.. Go to the kitchen, eat a sandwich and have gigantic beer. This will relax you a bit, and you may soon decide on a better route.
Being in real estate I have kept most of my investments safely their, so you know I'm okay. Just kidding, I'm down even more.
With the stock market down as far as it is I'm getting a ton of calls lately from seniors desirous of getting a reverse mortgage.
I'm a bit dumbfounded, because I simply can't understand how the reverse mortgage can be used to somehow change or plug up some financial hole.
Most of these folks are running scared and are in panic mode.
It doesn't make a whole lot of sense to me. I mean they already own the equity to the home. It's there's. What they perceive a reverse mortgage will do for them is convoluded.
Many have a sense of the loss of security and are looking to patch the proverbial net up with the reverse mortgage. I understand this, but is it a solid financial patch thought through rationally?
I don't think so. Some are telling me they want to invest the line of credit back in the market. They are citing the Warren Buffet line, "When people get greedy I get scared. When people get scared, I get greedy."
Our 2nd group may be making a mathematical mistake. After all, how good can the investment actually be in these times? Just to take the money out it will more than like cost them six percent per year.
The math doesn't work out very well, even if they get 10%. Less than a 4% return.
The facts are that this is not a great time for investments. I suppose if you have real ringer that can work, but for the most part these are very precarious times for investors. Many of the big guys are sitting it out.
Do yourselves a favor.. Go to the kitchen, eat a sandwich and have gigantic beer. This will relax you a bit, and you may soon decide on a better route.
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posted by Credit Counseling at
5:52 PM
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