Reverse Mortgages are making a comeback and mortgage marketers have increased their direct mail budgets to reach out to Golden Homeowners who may be good prospects for a reverse mortgage product.
Golden Homeowners are taking out Reverse Mortgages for many reasons. Some are making home improvements so they can “age in place” in their homes; others to relieve some of their existing debt. Still others are working with their financial advisors and incorporating reverse mortgages into their retirement strategy.
There are different elements available on Dataman Group’s Reverse Mortgage lists that help Reverse Mortgage lenders select the best prospects for their products. Some of the options include selection by home owner age, marital status, current home value and estimated current LTV. Actual, existing HECMs are also available for those lenders who are refinancing Reverse Mortgages.
A reverse mortgage is a special type of home loan that allows homeowners who are 62 or older to access the equity they have built up in their homes and defer payment of the loan until they pass away, sell, or move out. The loan proceeds are generally provided to the borrowers as lump-sum payments, monthly payments, or as lines of credit. Homeowners remain responsible for payment of taxes, insurance and home maintenance, among other obligations.
Most reverse mortgages are insured by the Federal Housing Administration (FHA), as part of its Home Equity Conversion Mortgage (HECM) program. As long as you live in the home as your primary residence, maintain the home, and pay homeowner’s insurance, property taxes, and homeowner’s (sometimes referred to as “HOA” fees) and/or condo association dues (if applicable), the loan does not have to be repaid.
Golden Homeowners need to make sure they thoroughly research and understand all the nuances of a reverse mortgage. That’s why borrowers are required to take HUD-approved counseling (which details the loan’s commitments and conditions) before being approved for the reverse mortgage.