Reverse Mortgages

Every time I hear those commercials on television about taking equity out of your home the hair follicles on the back of my head tingle. While there is nothing wrong with using your equity as you get older. After all, it’s your money and I say use it for yourself, you deserve it.

The problems I have with these commercials are:

1. They want you to call a generic number to talk to God knows who and let them pull the money out and give it to you! What!?

2. They tell you nothing about what your responsibilities will be after you’ve pulled that money out.

3. They thinly veil how much it WILL cost you to take that action.

4. They thinly veil or never mention anything that may make you think twice before picking up that phone!

Here’s your simple answer; See your banker! Do not leave this major decision up to a complete stranger!

You will-Still be responsible for property taxes, house insurance, home repair and upkeep, just to mention a few things.

Trust no one but people you already trust. You should have everything spelled out for you and given advice how to use that money. If you already have a “banking relationship” you have money and commitments from and in your bank. They want you to keep your business going to them. They would be stupid not to protect that relationship.

That generic phone number at the bottom of your screen doesn’t know you at all! Why would you trust them with your money, much less all your personal information? Television is meant to entertain you, or sell you some “As Seen on Television” gadget. Do not trust it with your financial future.