I often ask new clients what they think their home is worth. Not surprisingly, the answers I get back are usually overly-optimistic. Nonetheless, these clients often have a very strong sense of how much their home is worth to them. In fact, I find that people who come to me looking for reverse mortgages are particularly good at separating the intrinsic value of their home from its market value.
Despite the volatility in today’s real estate market, the value of a home to its owner is very difficult to quantify. Our home’s value is much greater than the sum of its parts. Our homes are often intricately entwined with who we are and how we live our lives. They are places of comfort, memories and a sense of self. These are values that cannot be quantified in the market price of real estate. These aspects of our home often increase the value of the residence far beyond what the property’s fair market purchase price represents.
[youtube:Xjshi6e0jec;Florida Reverse Mortgages;http://www.youtube.com/watch?v=Xjshi6e0jec&feature=related]For reverse mortgage borrowers, the cash value of their homes is of secondary importance since they never plan to sell. While their home’s current market value is certainly a main factor in how much they can borrow, the real question involves how to properly allocate valuable retirement resources. These individuals often conclude that tying up too much of their net worth in one illiquid asset is not the most fiscally prudent retirement plan. For these borrowers, tapping into the home’s monetary value while preserving the intrinsic value of the property often makes a lot of sense.
Just because a reverse mortgage may make sense for your individual circumstances does not mean that you shouldn’t be very careful and thoughtful in developing an overall strategy to put those funds to work. Smart reverse mortgage borrower look at reverse mortgage proceeds as but one tool in their retirement arsenal. How you ultimately use your funds is, of course, entirely your decision. However, individuals would be well advised to cautiously develop an overall retirement strategy before withdrawing any money out of their equity.
Seniors who carefully consider their overall financial picture and include their home equity in their retirement planning are more likely to live comfortably during their later years. Seniors who ignore their home equity are missing one of the largest pieces of their retirement puzzle. Although these loans are not appropriate for everyone under every circumstance, if your home consists of a large part of your net worth, you should definitely think about reverse mortgages and how they may help your retirement planning.
If getting rid of monthly mortgage costs, creating more available money during your senior years and staying in your home indefinitely is important to you, then you should definitely consider a reverse mortgage. Take a look at this amazing product today. You may be pleasantly surprised at the options available to you.