Reverse Mortgage Guide

Anybody notice anybody notice that the value of the dollar against many other currencies has begun to fall. For instance, on Monday the euro hit $1.482 while the US and Canadian dollars now have about the same value — a big change when you consider that the US dollar used to be far more valuable. This means if you go overseas you’ll be spending a lot more for a night on the town or entry into a top museum.

There is an oddity to this however. As big US companies become multinational companies more and more of their revenue comes from overseas. This means US firms are collecting money in foreign currencies, foreign currencies which are often far more valuable than dollars. This means companies can report big profits from foreign operations in large part because of currency conversions.

What does this have to do with reverse mortgages? While no one knows what the future will bring, the declining value of the dollar suggests that foreign investors will want better returns when they invest in the US. This means we are likely to see higher interest rates in the future, a good reason to consider fixed-rate reverse financing if one is considering a reverse mortgage at all.

This entry was posted on Tuesday, October 2nd, 2007 at 5:42 am and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.