The ability to take advantage of a reverse mortgage is important to you and it’s important to us as well. So now let’s take a look into what its future holds.
- The reverse mortgage has been around since the 1960s — and it will be around in the future. With longevity issues facing larger and larger numbers of our seniors, the reverse mortgage stands to help resolve the aging-in-place concept taking shape today.
- In April 2015, the Federal Housing Administration (FHA) issued new guidelines that affect reverse mortgages. Going forward lending institutions must obtain documentation that the reverse mortgage applicant has the money to continue to pay taxes, maintenance fees and insurance. These are the same documentation rules that apply to regular home mortgages and puts reverse mortgages on the same footing with those older forms of lending.
- The National Reverse Mortgage Lenders Association tracks home equity, debt, and home mortgage values for seniors. In recent years, the equity values of senior homes has increased and debt has decreased. This bodes well for seniors having enough equity in their homes to take advantage of home equity loans.
- Baby boomers have started the retirement explosion. This also is good news for the reverse mortgage industry. Lower investment returns since 2008 together with the rising costs of living into advanced senior status have made the reverse mortgage popular with this generation of seniors.
- Experts expect baby boomers to double to 92 million people by 2060. These seniors are rich in home equity but have the lowest median income level of any group. That’s a recipe that bakes up future borrowers and applicants for reverse mortgages.
To talk more about this, or anything else, please contact us.