As the world awaits January 2008, when the first round of baby boomers turn 62 years old, investors from Washington to Wall Street are scurrying to add new, innovative products to the 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.
Many consumers have long awaited the option of having a fixed rate, and at last it is here. An FHA/HECM FIXED rate option as well as new multiple-margin HECM products are now available.
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.
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 product that is creating a lot of excitement is using a reverse mortgage to purchase a second home. Now seniors that would like a warmer climate in the winter or a cooler climate in the summer can afford to do so, without monthly payments. It is also possible to have 2 reverse mortgages at the same time. This means you could have 2 homes with no monthly 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.
As a final note, please be advised that you should look for a lender that is approved by the National Association of Reverse Mortgage Lenders (NRMLA). Currently, this is the only organization that oversees the ethical conduct of those in this industry.
About the Author:
To find out more about how to benefit from a a reverse mortgage please contact Virginia Berry, yourColorado Reverse Mortgage Specialist at 866-260-6713, or 719-520-3326.
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