Part 2 Using the Reverse Mortgage as an Inflation Hedge

Eye opening article from Chris Clow at Reverse Mortgage Daily with how the Reverse Mortgage can give borrowers more financial options through accessing trapped equity in the home.

Inflation is at its highest level in 40 years, 8.2%. Sadly, wages, social security and pension payments have not increased to offset the loss in buying power. Our dollars are going less far.

Omar Ennabe explains, “In retirement, people typically have a set amount of dollars they can spend per month and rarely do cost of living adjustments on pensions or SSI keep up with the true cost increase of goods and services. When I discuss inflation with our clients, I advise them to always prepare for the certainty of uncertainty and to be ready for the worst-case scenario. For this reason, I counsel them to give themselves more options and greater flexibility when thinking about a mortgage product that fits their needs/wants. One of the reasons I love the reverse so much is precisely this reason. The reverse mortgage is really every product in one. If you want to pay off the loan in 30 years, you can do that with a reverse. If you want to pay it in 10, you can do that with a reverse. If you want to send in just the interest only, you can do that with a reverse. And if you don’t or can’t send in a payment for whatever reason, that’s fine also.”

https://reversemortgagedaily.com/articles/tips-about-handling-inflation-conversations-from-reverse-mortgage-division-leads/