Seniors need to make an informed and educated decision on Reverse Mortgages

Feb. 4, 2009 - PRLog -- This is the biggest question that comes to mind when a senior who owns a home is contemplating whether to receive a Reverse Mortgage or not. There are many reasons why a person over the age of 62 should consider it and there is also some valid reason why one should not do a RM.

Many times some seniors who understand that they are not signing away the title to their home consider using the Reverse Mortgage for the purchase of investment properties or to fund education for their grand children or many other reasons. The fact in the matter this mortgage is not for every person and they must determine some very important issues that can affect the future for them. When a senior is younger in the early stages of retirement it may behoove them to wait until a later age to receive a RM. It all comes down to understanding some of the important issues that can affect the future outcome. The most important issue is need not greed, if someone is thinking of using a Reverse for greed they better think long and hard before they do it simply because this is how this country got to where it is today. By using the proceeds from an RM for investing you maybe be placing good money after bad, and once this money is used up they will not have any when they need it the most. Later in Life for the important things to survive!  

So let’s take a look at the reasons that a senior should NOT take out a Reverse Mortgage at an early age of 62!

Starting at age 62
•   If a person has sufficient income on a balance sheet that shows that they would be able to live comfortable for the next tens years
•   If they are planning on selling their home in the next 7 years.
•   If they are going to keep their current employment and income over the next 7 years
•   If they are in a mortgage free situation and the area is not hit with declining values.
•   They should not take the money to invest in risky investment opportunities I.e. Stocks, risky real estate,


These are some of the main reason why a senior should NOT take out a Reverse Mortgage and the reason why is very simple. If any of the above issues are in play they still have time to build their retirement nest egg.

1.   A person who has sat down and figured out the amount of money that they have in safe invest vehicle where they are not going risk the principle over these rough times in pretty safe. As long as they know they will have enough money to live comfortable for the next ten years.
2.   If they have decided that they for what ever reason are going to attempt to sell the home they live in over the next ten years, then to take out a Reverse Mortgage and use some of the equity to pay the expenses does not really make good sense.
3.   If a person at the age of 62 is still working and they are planning on working until age 70 they should really think about not using the RM since they still have sufficient income to live on, but on the other side is their employment in a vulnerable situation for the times.
4.   This one is a big unknown in a lot of ways simply as we have seen there are not to many areas of the country that have not been affected by the down turn in the Real Estate markets. But if they are earning income and do not have mortgage payments they should hold off for now until their income has changed.
5.   In these troubling times for investments they should not use the equity in their homes now to invest in speculative or uncertain investment opportunities and throw away the future when they will need it the most and the possibility of loosing all or part of the money today. Always think about the future!

The senior who is 62 years of age or there about, let’s just say the early years should really do some serious planning and thinking before they jump into a Reverse Mortgage. The choice of whether to do it on not should be based on each individual’s needs and situation along with income potential and security.

Now let’s look at why a 62 year old senior should really consider a Reverse Mortgage.

If you are now 62 or there about there are some important issues that you should be considering at this time. Look below at the list of issues that you should be thinking about before you act on a Reverse Mortgage.
•   Is your income in any jeopardy now or in the near future?
•    Is your current mortgage balance squeezing you now?
•   Are the values in your area in trouble more then in other areas?
•   Would the stress of having the available monies from a Reverse help you in you health situation?
•   Have your investments, Retirement portfolio in jeopardy of being wiped out?
•   Are you in fear of loosing your home?
•   Are your immediate financial needs exceeding your present income availabilities?
•   Are you planning on living in your home for the rest of your life?
•   Do you have expensive medial issues that you fear you will need monies to pay for them?

There are many other reasons that a senior who is young in the beginning stages of retirement would want to or have to take out a Reverse Mortgage. The ones listed are some of the major ones that seniors are felling today. If you are uncertain you must take stock and speak to someone who can give you all of the positives and negatives of the Reverse Mortgage and who will not try to push you into making a hasty decision.

A true professional in the Reverse Mortgage industry is a person who truly cares about the seniors problems and concerns and not just about making a sale and receiving commissions on the back of the senior.  For all of the up to date information and planning skills on a Reverse Mortgage visit http://www.seniorconsumerreport.com to see videos of the Reverse Mortgage go to http://www.myreversespecialist.com or contact us at 1-800-966-7211 ext 118

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As a company Equitable Reverse Mortgage, we only work to help seniors and their families who are over the age of 62 to achieve some sort of financial stability in these tough economic times. All we do is Reverse Mortgages. One stop education source with our Reverse Mortgage Guide To receive a complete copy of the Reverse Mortgage Report visit http://www.seniorconsumerreport.com