How a Reverse Mortgage Can Be Your Pot of Gold

by Virginia Berry

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.

Purchasing a second home is another exciting use for a reverse mortgage. With this option, seniors can finally have that dream home they have always wanted. This second home can now be acquired with no monthly payments by using a reverse mortgage. It is even possible to have 2 reverse mortgage loans at the same time. You can have one on your existing home and one on your second home both with no payments!

Please make sure you have a good understanding and confidence in the process of getting a reverse mortgage. There are many different concepts and different terminologies that you may not have head of before. Also, not all lenders offer the same choice of products and many of them limit the choices of investors you can go with.

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.

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