A Second Look at Reverse Mortgage Amid Coronavirus Pandemic

Reverse mortgage has gained the attention of many these days as a potential source of financial stability as the stock market plunge and the 401(k)s shrink away amid the coronavirus outbreak.

A part of the new appeal in this type of loan has been the rising equity that seniors have in their homes. The NRMLA or National Reverse MortgageLenders Association said that homeowners who are at least 62 years old aw their housing riches increase by $39 billion for the 3^rd quarter to the 4^th quarter of 2019, which set a record level of a whopping $7.23 trillion at by the end of the said year.

The growth is significant and it marked a 67% year to year increase for the sector. The customers of reverse mortgage loans is the older homeowner that’s in their retirement, and their retirement just battered by as much as 30%. Many borrowers asked if they should be accessing the equity in their homes rather than sell off their position or just live off their retirement with the belief that over time, it will return.

Although economic crises aren’t something new, the current situation’s scope and depth on the global scale is affecting the people hard, with several potential borrowers asking more questions about reverse mortgage loans.

Meanwhile, reverse mortgage borrower interest has risen continuously at an extremely high level and perhaps even higher since borrowers are noticing some of their other retirement assets undergo significant issues because of the decrease in the stock market. Borrowers are making use of their home equity as a source of income that they could tap into in order to fill that financial gap that is being created by the coronavirus pandemic. From the perspective of a borrower, it’s most likely because there is a growing interest at the borrower level.

Many of the borrowers of reverse mortgage loans are in the eye of this particular hurricane. They are worried about their financial health and if they still have the ability to age in place in the years to come. The deeper answer to this question is what are the actions they’re taking to edge their risks during this time when the markets are making vast movements? A lot of them are turning to reverse mortgage for safety and security.

Inquiry levels about this loan has reached new levels that lenders haven’t seen in three years. This could be attributed to a wider trend where more homeowners are considering their home equity as an option to help them get a more secure and safe retirement outcome.

An essential component in this rising consumer interest is overcoming the confusion by a lot of people about how this product work. Even though reverse mortgages have been available on the market for several years, many people are still unaware of how the loan works.

There remains a lot of misconceptions regarding the product. If you wish to know more about reverse mortgages, don’t hesitate to call Reverse Mortgage Specialist.

David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/

Is Reverse Mortgage Safe?

As you start or approach retirement, many people find that they may need more income. There are many ways to increase your cash inflows like a dividend paying stock or a part time job. But there’s another option that you may want to consider – reverse mortgage. What is a reverse mortgage and is it safe?

Understanding Reverse Mortgage

Getting a reverse mortgage loan is just like selling your house to a lender in return for money. It may be in the form of an income stream, line of credit, or a lump sum. You will be allowed to stay in your house for as long as you can. It is still a loan and you will borrow an amount that is less than the value of your home. The amount that you owe will increase as time passes by as interest rates are applied.

You don’t have to repay the loan until you die, stop living in the house, decide to sell your home, or move to a nursing home. During that time, your house could be sold to cover your debt. Your heirs may keep the house provided that they repay the loan.

What Is So Good About A Reverse Mortgage?

The big plus of a reverse mortgage Columbia is that it can provide you with an income stream that could be very welcome once you retire. With countless Americans underprepared for retirement in terms of their finances, getting a loan could be helpful.

A reverse mortgage tend to be tax free and that is another benefit that borrowers will enjoy. Other retirement funding options require you to downsize and sell your house or even to move to a much less expensive region, reverse mortgages will allow you to stay in your house while you receive regular payments.

Is A Reverse Mortgage Safe?

Reverse mortgage is an effective and safe way to increase your retirement income. But it also has its own set of disadvantages.

You may be sold one with terms that are less ideal by a pushy sales person. Do not fall for their hard sale pitches. In case you are interested in a reverse mortgage, it is better if you get in touch with solid lenders on your own and maybe have an attorney or reverse mortgage specialist to help you out before you sign any contract.

You might not get as much income through a reverse mortgage as you may have expected. The amount of money that you can borrow would depend on certain factors like your life expectancy and that of your spouse, as well as the home value, home equity, and the current interest rates. As time goes by, interest rates will be added to your loan balance and you also have to deal with closing costs, just like other types of loan.

A reverse mortgage loan may not be the financial option that you thought it was since you will still be held accountable for paying off home related expenses like home insurance, property taxes, home maintenance, and home repairs.

Call Reverse Mortgage Specialist if you wish to know if a reverse mortgage is the best option for you.

David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/