Welcome to blog post numero uno (number 1). Before I begin my mission of explaining why reverse mortgages are so great, let’s start with some housekeeping rules…
#1 – If you’re a miserable person and have nothing but negativity to spread, move on.
#2 – If you’re a closed minded person that knows everything about everything, move on.
#3 – If the title of this blog upsets you…later gator.
Ok. Now that we got that out of the way…..let’s talk about why reverse mortgages are the best thing since sliced bread.
For starters, let me just warn you that whatever you THINK you know about reverse mortgages is probably not accurate. The purpose of my blog is to educate you on the FACTS about this program. Please try your hardest to forget what your great uncles, sisters, neighbors, friends, co-worker told you about reverse mortgages. I’m fairly certain the information they’ve told you is totally inaccurate.
That being said, let me share with you why the reverse mortgage is the most amazing financial planning tool ever.
To keep this VERYYYY simple, lets start with a one sentence definition of the Home Equity Conversion Mortgage (which is just the governments fancy name for reverse mortgages).
Here it is…
A reverse mortgage is a loan that enables homeowners 62 and over to access part of their homes equity without requiring a monthly principle and interest payment.
Sounds pretty simple…right?
I know what you’re thinking…..“But Eric, if it’s such a great loan, why does everyone say to avoid reverse mortgages?”
You want the truth??? This might surprise you (and possibly even upset you if you’re a closed minded person). FYI…you should refer to my housekeeping rule #2 above.
People say to avoid reverse mortgages because they don’t understand them.
It’s that simple.
I’ve literally met with THOUSANDS of reverse mortgage clients, their children, their neighbors, their financial professionals, their trusted advisors, and even one of my clients most trusted fortune tellers.
P.S. – the fortune teller DID not bring her crystal ball.
99.9% of the time, what people think they know about the reverse mortgage is inaccurate. In the Marine Corps, we had a saying – Junk in, Junk out. Said another way…..If you have bad information, you’re going to make bad decisions based on that bad information. (Marines are a lot smarter than you think).
It’s human nature to fear something when you don’t understand it. The problem is when you’re receiving information from a closed minded “know it all”. They don’t want to hear the facts about the program. It’s makes them look bad.
This is THE biggest problem I face daily with my clients that are perfect candidates for the reverse mortgage.
I give them the facts. They love the loan. It’ll make their lives 1000 times easier. But, someone they love and trust is telling them to “sell their home and rent an apartment”.
Or “use your cash reserves first” or “liquidate your retirement account.” Not always the best advice for someone that just wants to remain in their home and age in place.
Ok, ok….I’ve rambled on long enough now. I’ll leave you with this – My purpose with this page is to show the world HOW GREAT reverse mortgages are. They always have been great. I’m not saying every single person that’s 62 should do one, but for the right borrower it could be an absolute GAME changer in their lives. I’ve seen this time and time again with my clients.
Hopefully you’ll find the blog posts to follow to be very useful. Please let me know what you think (good or bad). Just remember housekeeping rule #1. 🙂