Why Reverse Mortgages can be a losing proposition
In this conspiracy we will take a look at why a reverse mortgage may be a bad proposition.
A quote is in order here, †Carlton Sheets a well-known No Money Down Realestate Investor, once said that, †the definition of a banker is a guy who lends you an umbrella when it’s sunny outside, and asks for it back when it’s raining.â€
Isn’t that just about right!
It should be obvious to anyone looking into doing a reverse mortgage that the bank is not in the business of doing favors.
So let’s look at this’
Your home is an investment that consist of the land the house sits on. The materials that went into building the home. And other considerations as the location of the home.
Have you ever noticed that the most expensive homes usually sit on land that was only available years ago!
The newer homes are usually on less suitable lands, because the best locations were already taken.
How a Reverse Mortgage can Screw you!
So I’ve mentioned the intrinsic value of the home or house; however, you want to look at it.
The next thing we have to discuss is what inflation will do to the money you get from the reverse mortgage.
By now we all know what inflation is. This is a hideous disease of money printing. This steal’s the value from the money you have.
In case you haven’t already caught on, to what this means. The money they give you on a reverse mortgage is losing purchasing value over time.
Now what did you home do? Most likely it went up over time, and that’s why the bank is willing to loan on that asset. See what Dave Ramsey’s says about reverse mortgages.
I shouldn’t need to write more here, because if you still have some brain cells left you should get it!
Hope this helps you’
Thanks for reading’
