homeowner equity: Baby Boomers and Reverse Mortgages, another Perfect Storm for Lenders
- 02/21/08 03:41 AM
Since the subprime loan sector is shut down, the mortgage industry is looking for new products to sell, products with less risk and with a broad appeal. With the baby boomer generation reaching retirement, the industry will find the perfect product in the reverse mortgage. Many have heard about reverse mortgages, but most don't really know what they are. With a standard "forward" mortgage, a buyer borrows money to be used to purchase a home. It is also known as a "declining debt" loan. The loan amount is equal to the purchase price minus any down payment. At the onset, the … (2 comments)
Since the subprime loan sector is shut down, the mortgage industry is looking for new products to sell, products with less risk and with a broad appeal. With the baby boomer generation reaching retirement, the industry will find the perfect product in the reverse mortgage. Many have heard about reverse mortgages, but most don't really know what they are. With a standard "forward" mortgage, a buyer borrows money to be used to purchase a home. It is also known as a "declining debt" loan. The loan amount is equal to the purchase price minus any down payment. At the onset, the … (2 comments)
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