Reverse Mortgage News: Popularity is Growing
Just in! Reverse Mortgage News - trend on the rise and expected growth to continue…
Whether you’re seeking reverse mortgages in Denver or Boca Raton, the trend is that the reverse mortgage is on the rise. FHA insured 76,351 reverse mortgages in the 12 months ending September 30, 2006, a 77% increase over the previous year. Forecasters suggests that more than 105,000 loans may be insured by the end of September 2007.
During the 1990s, the demand for a reverse mortgage in the Denver CO metro area and elsewhere was extremely small with less than one percent of eligible homeowners nationwide actually opting for one. Because many baby boomers will reach retirement with insufficient wealth and will need options for increasing their liquidity, this rising trend most certainly will continue.
Reverse mortgage loans were once considered predatory loans that preyed on older, vulnerable people. For years there were reverse mortgage products with complicated pricing structures, high exit fees and out-of-control interest rates.
In the last decade they have finally gained credibility. Tamed by legislation in the mid-1990s that required more upfront disclosures and software that allows for objective comparisons of loan possibilities, the reverse mortgage is now a viable financial tool that can truly give consumers more choices. In addition, the first federally insured products were introduced in 1989. These now make up about 95% of the reverse mortgage sales.
If consumers have equity in their home, plan to stay in their home for a long time, could use additional funds and if they meet the other requirements, exploring a reverse mortgage in metro Denver, CO could very well make sound fiscal sense. Always worth the consideration…
>> Basic Q&A on Colorado Reverse Mortgages
