Reverse Mortgages For Those Under Age 62
November 4th, 2007
- New Jumbo Reverse Mortgage Announced
- HECM Saver Reverse Mortgage Announced By HUD
- Reverse Mortgages & Shared Appreciation
- Consumer columnist urges “another look” for reverse mortgages
- Why Not Some Context?
Usually when we think of reverse mortgages we think of financing for those aged 62 and above.
This age qualification is obviously artificial. There is no reason it could not be higher or lower, and now we have a lender who has lowered the age requirement.
Lender Lead Solutions says it’s “the first lender in the reverse mortgage industry to announce a product for seniors who are younger than the current Home Equity Conversion Mortgage (HECM) age requirement of 62 years old. This proprietary product also allows seniors over the age of 62 the opportunity to borrow a smaller amount of money with lower closing costs and reduced fees.”
“The growth of the senior market provides a tremendous expansion opportunity for new proprietary products in the reverse mortgage marketplace,” said David Peskin, chief executive officer of Lender Lead Solutions. “Census statistics tell us that the oldest of the baby boomers turned 60 last year, and more than 4.5 million seniors currently fall between the ages of 60 and 62. We feel this is the perfect time to introduce the Simple60 product.”
The company says that “more than 15% of consumers inquiring for a reverse mortgage are technically not qualified due to age. The Simple60 product benefits homeowners who are eager to access their equity earlier and provides lower closing costs than a traditional HECM reverse mortgage. Simple60 is a non-recourse loan that ensures loan debt will never exceed the value of the home. The tax-free proceeds are based on the homeowner’s age and value of the home.”
Is it a good thing to have a reverse mortgage available two years early? Considering the number of people who now have financial difficulties it may not be a bad idea.
Of course, it would be good to know more, such as: What percentage of a home’s equity can be borrowed? What are the closing costs? What’s the margin above the ARM index? What is the monthly fee? Etc.
As always with any reverse mortgage product, sign nothing until you have first spoken with an attorney who specializes in elder law and, as always, be sure to shop for rates and terms. Never, of course, rely on a “loan counselor” who is funded by a lender.