For mortgages in reverse, it’s a new chapter

For mortgages in reverse, it’s a new chapter,

One part of the mortgage market is hot: reverse mortgages. And that’s giving older homeowners more options to tap the equity in their homes - but also is opening the door to more confusion and mistakes.

Only a year ago, homeowners interested in reverse mortgages had little to choose from beyond the plain-vanilla, government-backed products that have long dominated the market. Such mortgages essentially allow homeowners at least 62 years old to sell a large chunk of their home equity back to a bank or other lender in exchange for a lump sum, monthly payments or a line of credit.

Now nearly a dozen large banks and mortgage lenders have launched reverse-mortgage products with lower fees and larger payouts. One lender has reduced the minimum age requirement to 60; others are making loans on second homes and vacation rentals. “Jumbo” reverse mortgages - for houses valued at as much as $ 10 million - are becoming more common.

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Full post here Reverse Mortgage Loan Blog

Written by News & Feeds on November 26th, 2007 with comments disabled.
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