I just went to a lunch and learn about reverse mortgages yesterday. Being in the business I had a rough idea of what a reverse mortgage was and how it works, but I really didn't. There's multiple different reverse products and some can really make sense for some folks in particular situations. I was made aware of a new where you obtain a reverse mortgage but it becomes a credit line. You get the going rate plus a half a point and it will compound. The longer you wait to pull the cash the more it grows. Very interesting, it also get the gears going for me wondering where they put that money. They have to be putting it somewhere in order to pay the gains. The question is out to Big Valley mortgage now.
The traditional reverse can work for people that are looking to more financial freedom in the golden years. If you don't have kids and not really worried about leaving an inheritance, then a reverse is perfect. Maybe you do have kids but you have other assets that you set aside for them. Using a reverse mortgage can be the ticket. It's becoming more popular that I ever imagined. The baby boomers are getting to the age and they like the bigger and better. They're not as conservative as their parents were. I'm skeptical of the stat, but I was told 47% of the baby boomers are moving up, not down. I thought it would have been around 10% of boomers moving up. Typically seniors buy down, the kids are gone, don't need as big a place anymore. Not our boomers! lol. A true testament to capitalism.
If you have questions about reverse mortgages, you can get in touch with Jeff Silver 916-204-4653