More Reverse Mortgage Lenders Equals Better Rates
With the subprime and nontraditional loan markets drying up, lenders are turning to a potential mother lode of new loans from older homeowners flush with home equity cash.
A bulge of some 78 million baby boomers is currently moving through the population heading toward the retirement years. The vast majority of baby boomers are home owners, many of them long timers with substantial equity nests.
Just as quickly as lenders are opening reverse mortgage shops, consumer advocates are warning seniors that the complexities of reverse mortgages make them ripe for predatory abuse.
Under a reverse mortgage, borrowers 62 and older can turn home equity into a stream of cash they don’t have to repay until they sell and move out, die or otherwise no longer own the home. The money could come in handy, say for those with fixed or falling incomes, who need cash now, especially if there are no living heirs. Full Stroy:
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