Reverse mortgages on the rise - Information for seniors and their advisors
Roy Kelley, a Realtor® in Maryland, ALWAYS writes such great informational blogs and delights us all with his beautiful photography.
His blog on Reverse Mortgages is so appropriate in today's market. If you are a homeowner at least 62 years of age, you can tap that equity out of your home with no REPAYMENT!!! You can replace those retirement portfolios which took such major hits, you can take a monthly payment back to YOU, you can pay off debts. You can also purchase your FUTURE retirement home in an area like Arizona, paying only the taxes and insurance. Then, when you're ready to move to your retirement home, sell your current home and live payment free. And, you've acquired your current home at today's values.
There are so many uses for a reverse mortgage - it just might be worth checking into.
Reverse mortgages on the rise - Information for seniors and their advisors
"Converting home equity into cash has been a challenge for home owners since the real-estate downturn, but a growing number of lenders are quietly reviving a loan for seniors that does just that: the reverse mortgage.
Reverse mortgages allow home owners who are at least 62 years old to draw down on their home's equity in exchange for cash in several ways, including one lump sum, a line of credit or monthly Compared to a few years ago, the total number of reverse mortgages is small. But lending has been picking up. In 2011, MetLife Bank originated 10,512 reverse mortgages, up 171% from the previous year, according to data firm Reverse Market Insight. The firm tracks reverse mortgages insured by the Department of Housing and Urban Development, or about 95% of total originations. Other lenders also had sharp increases. Quicken Loans' company One Reverse Mortgage doled out 4,619, up 43%, while Urban Financial Group and Genworth Financial Home Equity Access, a subsidiary of Genworth Financial, increased lending by 80% and 96%, respectively." - Mortgage Lending News, LLCReal estate professionals need to advise their senior clients about the options that are available with the reverse mortgage products. Reverse mortgages are not suitable for all seniors. For those with substantial equity but insufficient incomes, reverse mortgages have the potential of being the lifelines that will improve the quality of life for the qualified seniors.
Too few real estate professionals are explaining the option of using a reverse mortgage to purchase a more suitable primary residence. Some seniors may need to eliminate stairs and others may wish to reduce the cost of maintenance and real estate taxes. And, there is no requirement to downsize. Actually, some seniors can purchase new, larger, more suitable homes by combining their current home equity with the available reverse mortgage products.
Some real estate agents are unaware of the benefits of reverse mortgages and that is a strange situation since many of these client will generate at least two transactions for the real estate agent that knows how to best meet the needs of senior.
When seniors are selecting a real estate agent, one of the questions should relate to the knowledge of reverse mortgages.
There are no income or credit requirements for reverse mortgages and older applicants will usually qualify for larger loan amounts than younger borrowers. A real estate professional is usually the best source for a referral to a reverse mortgage specialist with a major lender.
Please contact us if you wish to consider reverse mortgage options in Maryland. We will be happy to refer you to an experienced reverse mortgage specialist.
Be sure to have your camera in hand to capture the special moments when you are out and about in your community or during your travels.
Longwood Gardens Conservatory IMG_4171
Photograph by Roy Kelley using a Canon PowerShot G11 camera.
Roy and Dolores Kelley Photographs
We represent home buyers and sellers as their exclusive agents in the Maryland suburbs of Washington DC and nearby counties. Your Real Estate Professionals In Maryland.
Roy Kelley
Roy Kelley & Associates
Associate Broker, RE/MAX Realty GroupClient Assistance: 301-670-8996
Recipient of the RE/MAX International Lifetime Achievement Award - 2008
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