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Looking At Your Home’s Equity Differently.

By Tim Begert

Whenever customers call my office looking for reverse mortgage information, the first thing I ask them is about the value of their home. Although a lot of these individuals tend to guess high, the have a very strong idea of how much they value their home. In fact, these individuals are very intelligent when it comes to separating market value from the inherent value of the home to them.

Despite the constant movements in real estate prices, the inherent value that a home has to a borrower is usually much higher than market value. Our homes are more than cinder blocks and wood. They often represent the very essence of our lifestyles and are the places that give us the most comfort. The value of these aspects of our home cannot be quantified in the open market. For many individuals, these inherent aspects of our homes represent the most important and meaningful parts of a home that can’t be value through an appraisal or sale of the home.

For individuals considering a reverse mortgage, the fair market value of their homes is not the main concern. These borrowers are looking to stay in their homes long-term and usually have no plans to sell. Although the market value of the home plays a major role in the size of a reverse mortgage that the borrower is eligible for, the real issue for these individuals is about efficient asset allocation. Individuals who consider reverse mortgages understand that placing too many eggs in one illiquid asset may not be the most intelligent retirement strategy. These individuals usually understand the advantage of using their home’s equity to create significant retirement freedom.

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.

Retirees who think carefully about their overall asset mix and consider their home value in this analysis are more likely to enjoy their retirement years comfortably. Seniors who consider their homes “off limits” will be ignoring one of the greatest assets they have to preserve their standard of living. Although reverse mortgages are not for everyone, if your home is a major part of your overall assets, you should definitely consider how they can help your home equity to work for you during your retirement years.

If eliminating pesky monthly mortgage bills, freeing up additional cash and owning your home for the rest of your life fits into your retirement plans, then looking into a reverse mortgage may make sense for you. You would be wise to investigate this flexible financing vehicle closely. You may be shocked at what a reverse mortgage can do for you.

Looking for more information on a reverse mortgages Florida or FHA reverse mortgage? Then make sure to check out Tim Begert’s online resources.

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Article Citation
MLA Style Citation:
Begert, Tim "Looking At Your Home’s Equity Differently.." Looking At Your Home’s Equity Differently.. 1 Jul. 2010. 10 Aug 2015 <>.

APA Style Citation:
Begert, T (2010, July 1). Looking At Your Home’s Equity Differently.. Retrieved August 10, 2015, from

Chicago Style Citation:
Begert, Tim "Looking At Your Home’s Equity Differently."

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