One interesting case-study that came up recently was a client who wanted to buy a business.
Frankly, he was a little bored with retirement it seemed and also wanted to make some money, and ideally have some more assets to leave his family.
Conventional business financing would potentially put his stability at risk, as most small business loans are “full recourse”, meaning, personally guaranteed. If the new business did not go well, he could potentially lose his home.
A reverse mortgage on the other hand, cannot be called due for nearly any reason, short of the usual reasons: failure to insure the home (collateral for the bank), or selling, moving, or passing away.
This means the client then had a terrific, low-interest, zero-payment risk-free way to finance his business. In the best case scenario, he could just pay the reverse mortgage off if he chose, or bank the money, or gift to family and enjoy the transfer while still around. In the worst case scenario, the children would still inherit the house, but with a small easy-to-refinance and pay off mortgage on it.
We’d like to help you too! Why not request a quote, and we’ll give you some risk-free options to consider? Just fill out the form on the right and we’ll get right back to you. There’s no pressure – just a friendly chat and options to think about.