Every mortgage company needs to find new reverse mortgage prospects.
For the Reverse Mortgage industry, 2020 has been a profitable year. 2021 is projected to be even better!
Did you know that 10,000 or more Americans reach age 62 each day? These homeowners need specific retirement planning and resource tools to complement their retirement strategy.
Homeowners aged 62 and older held $ 7.14 trillion in home equity in the first quarter of 2019. This is according to the National Reverse Mortgage Lenders Association
The Stigma is Gone
Reverse Mortgages are now an acceptable element of a person’s retirement strategy.
In it’s simplest definition, a reverse mortgage is simply a loan. The top prospect is a homeowner who is 62 or older with considerable home equity. This homeowner can borrow against the value of their home and receive funds. The dollars they receive may be a lump sum, fixed monthly payment or line of credit. This is different than a forward mortgage, which is the type used to buy a home.
The truth is that reverse mortgages can actually be a helpful financial planning tool for retirees.
Using a reverse mortgage is no longer just for the cash poor and house rich.” said Jamie Hopkins, an associate professor of taxation at The American College in Bryn Mawr, Pa. “Instead, reverse mortgages can be used strategically as one part of a retirement income plan. It can be designed to build a buffer against sequence of returns risk early in retirement. The loan can also help defer Social Security benefits.”