Reverse Mortgages For People Who Do Not Need One Now: High Importance

The Ben Franklin Close

Years ago, sales trainers would tell you to use the Ben Franklin close. You say, “Whenever Ben Franklin had to make a decision, he would take a piece of paper and draw two columns. Then, he would list all the advantages of buying the property on the left side and the disadvantages of buying the property on the right side. Now, when listing the good points, he would help the buyer and list many items. When, it came time to list the disadvantages, he would let the buyer volunteer most of the comments without much help. Then, he would with much vigor count up the 9 advantages and 3 disadvantages and let it hang, as it was obvious what should be done.”

Recent Advice on Reverse Mortgages

A writer recently did a sort of restructure or switch of this concept in a recent article on Reverse Mortgages. The title of the article is “Disadvantages of Getting a Reverse Mortgage.” Wanting to see what is written on this subject, I clicked on it. It listed a few disadvantages including expensive, complicated, reduces money for heirs, etc. Then, he listed about 10 advantages. Seems that he is a RM provider. I believe the word is “Bait and Switch”.

Another article in The Wall Street Journal by Robert Powell called, “New Math on Reverse Mortgages” discusses another phase of the RM, not as well-known, as the Get a Mortgage phase. Now, many people have gotten RM’s and according to AARP, the satisfaction is high. I believe that if a person/couple is home equity heavy and spending money light, they should discuss a reverse mortgage with a true professional who specializes in the program as it is complicated.

Is “Enough Money” Really Enough?

Many homeowners with equity, if you got this far in your reading, are saying, “Thank you very much, but I have enough money now.” That is so good, and I am happy that you are in that position. HOWEVER, you might want to consider getting a Reverse Mortgage Line of Credit whether you need the money or not.

This line of credit builds at a rapid pace. So if you got an equity line of credit, it could be used to protect savings, increase income in retirement and to combat fluctuations in the financial markets for your investments. And hopefully if you never need it, it just sits there growing every day and would be available in case of medical catastrophe, grandchildren gifts, delaying social security, etc.

Powell quotes Harold Evensky, chairman of Evensky and Katz/Foldes Financial of Lubbock, Texas, and I shall also, “I believe most criticisms of RM’s relate to a myopic view of the product that has not been reviewed for decades. Unquestionably there can be misuses of the product. But the problem is in the use, not the product.”

Find Out How Reverse Mortgages Can Work For You

Want to get more information about this line of credit that I call the “Easier to Sleep at Night Line”? Call your local State Licensed Mortgage Loan Originator at once. Do not have one of those, call my office at 1-800-439-4909 and ask for Bob Schultz, and he can give you a referral of who can write the line in your area. Did I say no out of pocket expense?

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