In January of 2008, the first baby boomers reach the age of 62. This has sent investors from Wall Street to Washington scrambling to offer new, innovative products to those people looking at getting a reverse mortgage.
It wasn't long ago that consumers had three reverse mortgage products to choose from: the FHA HECM, the FANNIE MAE HOME KEEPER, and the JUMBO CASH ACCOUNT. Now, seven new lenders have introduced competing programs, with more large investors positioning to move into this growing market.
In addition to these private sector programs, new multiple-margin HECM products have been introduced, as well as an FHA/HECM FIXED rate option. Many consumers have long awaited the option of having a fixed rate, and at last it is here.
From January through June of 2007, there was an amazing growth in the reverse mortgage industry unlike anything it has seen since it's inception 17 years ago. Now, the reverse industry is catching up with the tradition "forward" mortgage in the sense that there are no more lenders. this kind of competition creates more products and offerings so that the needs of the senior customers can be satisfied.
One of the most exciting new products available today is the new "Purchase Reverse Loan". This product is available to seniors who are in the market to either purchase a new home, to down size, or relocate close to family. The ability to use a reverse mortgage to purchase a new property while never having to make a mortgage payment is VERY appealing to all seniors.
Another exciting new product, is the use of a reverse mortgage to purchase a second home. Many seniors would love to have the option to have that summer home in the mountains, or that winter home in Arizona. Now, you can, payment free for life, with the use of a reverse mortgage. You can even, have two reverse loans at the same time, one on your existing home, and one on your vacation home. Imagine two homes, no payments!
Because of all the new program concepts, and terminology, it is advised that you have a complete understanding and confidence in the reverse mortgage process. Not all lenders have the same variety of products, and many have only a few choices of investors.
Please make sure you look for a lender who is part of the National Association of Reverse Mortgage Lenders (NRMLA). This association is presently the only overseer of the ethical conduct of reverse mortgage lenders.
About the Author:
To find out more about how to benefit from a a reverse mortgage please call Virginia Berry, yourColorado Reverse Mortgage Specialist at 866-260-6713, or 719-520-3326.
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