Mortgage Lending For Those With Mortgages

Baby boomers are making reverse mortgages very popular today. We all see the ads about reverse mortgage lending on television. We can take a look at why a reverse mortgage might be something that could interest seniors and baby boomers these days.


A majority of baby boomers are finding that they are not able to retire comfortably like their parents did. Much of this has a lot to do with the state of our economy today. There are many baby boomers in financial trouble and they are totally depleted in their savings accounts.

This is the primary reason that marketing campaigns for reverse mortgages are so successful. It is difficult to get a good rate on a loan today and many people do not want to become indebted to family members. Reverse mortgages are seen as a possible way to get out of a financial struggle today.

Typically the older a homeowner is, the more the majority of the money owed to the mortgage lender has been paid off. This means that the baby boomer population and older seniors have the most equity in their homes and sometimes this is rather than other assets in many cases. When a large group of people have almost completed payment, or even paid off their mortgage note it makes a difference to the lending community, thus the marketing push for reverse mortgages. Check out the HECM costs here.

HECMs, or federally insured home equity conversion notes are very popular right now with seniors over the age of 62. To get an HECM you must be 62 or older, plus you have already paid off your mortgage, or at least most of your mortgage.

These HECM loans are often able to provide tax free income that requires no monthly payment in return. The loan can last until you sell your home or pass away.

A reverse mortgage can help many seniors get through tough times. Getting a reverse mortgage is not always recommended for every situation. It works best for those that intend to remain in their home for the next five to ten years. This is because the closing costs can be a bit expensive on reverse mortgages. Also, know that the loan will have interest accumulation as well.

You will want to take out the necessary time to determine if a reverse mortgage is the best idea for your current financial situation. It is very possible that a reverse mortgage will be the right choice for you, but make sure that you have a detailed understanding of what this kind of loan can and can not do for you. For your inquiries about reverse mortgages just see http://www.reversemortgagelendersdirect.com/advantages-and-disadvantages-reverse-mortgage/.