Debt Consolidation Credit Counseling In Phoenix

It isn't a secret that that the stock market is down a solid 35% or more. I don't keep accurate tabs on it because I don't have money in the market.

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.

Being a reverse mortgage loan officer you can imagine a bunch of older folks are calling me lately inquiring about the reverse mortgage as some sort of stopgap.

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.

Well, the first thing I need to do is step back and understand the stress they are under.

What really is to gain by accessing the equity to their homes, at this point, for a reverse mortgage? The equity is theirs already. Why crack open this can if it isn't absolutely necessary?

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 have serious questions about this logic. Other, more panicked or more aggressive potential clients (I'm not sure which) believe the market has seen its worst days are looking to plant reinvest their home equity into the market.

I don't really agree with this person either. They, more than likely will be charged 6% on the money the take out (plus closing costs). And the average can't be higher than 10%.

Okay, ten percent minus six percent equals four percent return. This is if they are doing really well.

With the math working out the way it does it makes it hard to use a reverse mortgage for investment purposes unless you know something that is borderline illegal to invest in without being accused of an SEC violation.

The best thing to do is to have glass of milk and cookie right now. Take a deep breath thereafter and sleep on it. Tomorrow, if you still want to get a reverse mortgage, call me.