The first baby boomers turn 62 as of January 2008. Because of this, many investors are scurrying to come up with new, innovative products to offer to the incredibly fast growing reverse mortgage market.
In days gone bay, consumers only had three reverse mortgage offers to choose from: 1. the FANNIE MAE HOME KEEPER, 2. the FHA HECM, and 3. JUMBO CASH ACCOUNT. Now that there is a booming market, seven new lenders that are now making available competing programs. And there are even more investors entering into this 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.
In just the past six months (January thru June 2007) the reverse mortgage business has witnessed a rapid evolution not seen in over 17 years of existence. The reverse mortgage industry is finally beginning to mirror the traditional "forward" mortgage market, as we see more lenders launching a wider variety of products and pricing options designed to fit the needs of our senior customers.
A "Purchase Reverse Loan" is one of the exciting new products that are available today. This product is exciting because it accommodates those seniors would like to buy a new home, relocate so they are closer to family members or if they wish to down size. By using a reverse mortgage to buy a new property, it saves Seniors from having to get a mortgage at this point in their lives.
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!
If you are looking for a reverse mortgage, just make sure that you understand the programs that are available, as well as, the terminology so that you have confidence in the reverse mortgage process. This is especially important because not all lenders offer the same types of products and many of them have limited choices of investors to choose from.
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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