Reverse Mortgage Guide

Blogger Tim Paul raises an interesting point, the idea that many senior citizens are not attracted to reverse mortgages because of a variety of innate fears.

Paul writes in a blog entitled Reverse Mortgage Fears that there may be “intangible psychological fears that may prevent senior homeowners from stepping into a reverse mortgage. Being aware of these factors can help potential borrowers more clearly assess their own situation and make a more calculated decision about whether or not a reverse mortgage is right for them.”

What are some of those fears? Paul lists:

*Fear of Giving-up a Hard-Earned Goal — paying off a mortgage.

*Fear of Being Suckered

*Fear of Financial Complexity

*Fear of Not Leaving an Inheritance

*Fear of Sacrificing Future Flexibility

This is about as good a list as you can find and it gets to an important point: Financing and refinancing real estate raises a bunch of psychological issues. More than dollars are involved, there is also ego, status, image and — as Paul writes — fear.

This entry was posted on Thursday, August 16th, 2007 at 6:34 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.