Is your retirement portfolio down in the dumps because you are heavy into equities? Are you selling stocks and mutual funds at refinancing mortgage loss to get cash to cover living expenses? Are you confident that the market will come back over time and wish that you had cash to ride out the storm?
As the popular saying goes, maybe it is time to 'think outside the box' and examine other possibilities to getting cash. You can sell equities at a loss as mentioned above and suffer from lost opportunity when the market rebounds. You can turn to family for financial assistance. You can sell you home to raise cash, but then you are faced with finding a new and presumably less expensive dwelling. However, you may want to seriously look into taking equity from your home and turning it into cash.
Your Financial Planner probably never told you to do cash out refinancing of your house. If they did, you would likely fire them and go find someone that had some common sense. Retirees don't need mortgage payments. I doubt that most people would sit still when offered such a suggestion as taking out a loan to live on, but maybe you should reconsider using the equity in your home. After all, the equity in your home belongs to you and no one else.
Rather than a traditional refinance seniors should use a Reverse Mortgage. Reverse Mortgages are designed for homeowners age 62 and older. The mortgage refinancing are really just that simple. If you have a mortgage, the Reverse Mortgage loan proceeds are used to pay it off, and you benefit from no more monthly mortgage payments. You do not pay back even one penny of a Reverse Mortgage until you permanently leave your home. If you are married the loan remains until you both leave the home.
Know that with a Reverse Mortgage, just as with the mortgage you had when you purchased your home, the house is in your name to do as you wish. You will be required to pay the taxes and insurance as you always have, and your heirs will still benefit from the remaining equity in your home.
Is a Reverse Mortgage a better alternative to selling stocks at a loss? You will need to compare the cost of the Reverse Mortgage against the lost opportunity on your investments in order to get the correct answer. Seniors should stop thinking about Reverse Mortgages as a bad idea and start looking at them as serious financial tools. Some people don't have a choice but to take out a Reverse Mortgage in order to remain in their homes, but maybe you have a choice and if the numbers prove it the Reverse Mortgage may be right for you.
To have a meaningful talk with your Financial Planner about Reverse Mortgages you will need a personalized printout of the expected loan amortization that only a qualified Reverse Mortgage Consultant can provide. Ask your Financial Planner to compare that to what your lost opportunity will cost you in the stock market and then you will be making an informed decision. A Reverse Mortgage just might make sense. I will gladly provide you a free no obligation quote. No matter what your decision, examine all the scenarios before you have regrets about the choices you make. For most retirees, they don't have the time to start the process of wealth creation over again after their money is gone.
Steven Moline is a Reverse Mortgage Consultant with First Priority Financial serving all of California.
I help senior homeowners who need extra cash for living achieve financial freedom for life. You need the facts to make an informed decision. I will come to your home in most cases and explain your benefits without pressure or obligation. For more information, to ask questions or to receive a complimentary brochure contact me toll free at 866-885-5573 or on the web at http://www.royalreversemortgage.com/Contact_Steve.htm
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