If you have ever seen the TV commercials for reverse mortgages you would think that they are the best financial decision for any homeowner age 62 or older. Then again, if you have read or seen a news flash on reverse mortgages, you might think that the reverse mortgage product can only hurt you.
I understand companies doing a commercial want to get customers, so they spin things in a very positive light. I also understand that news outlets and pundits are looking for ratings, so they live by the adage of, “if it bleeds it leads”.
Which one is right? The answer may surprise you – they can both be right and wrong. No two people will have the exact same financial circumstances so it is important to make sure you are match for any financial tool that is being offered.
In the case of considering a reverse mortgage, ask yourself the following question, “What am I trying to accomplish and will the reverse mortgage help me attain what I want?” A follow-up question to ask is, “Will this be a long term solution to what I want or will this be a short term solution?”
Once you know what you want, you can then move to finding solutions. A reverse mortgage might be the only solution or may be one of a number of solutions. Answer the following question; “How long do I want to stay in my home?” If your answer is at most a few years, a reverse mortgage most likely is not good for you. If your answer is long term or forever, than a reverse mortgage may be good for you – you still need to answer the question of what you want to accomplish and will the reverse mortgage be able to do that for you.
I have always felt that it was my job to ask a client questions, so I can find out if we are doing the right thing by suggesting they get a reverse mortgage – sometimes the answer is no, a reverse mortgage is not good for you; it always depends on your unique circumstances and the answers to some questions.
Contact us if you want to ask some questions and get honest answers.