Reverse Mortgage Update

Posted on November 16, 2008. Filed under: Product Description | Tags: , , , |

retirement20plan-aReverse mortgages for seniors over 65 are historically used under financial duress and are typically secured against their existing, or current, home.  The ability to purchase a new property using this product has been greatly limited by huge equity requirements related to the home they are vacating.  In order to get a reverse mortgage on a new property the calculators required about a 70% down payment but big changes are eminent.  Beginning January a senior above 65 will be able to purchase a new home using a reverse mortgage with something closer to 30-40% down. 

Think about the implications for seniors wanting to move from larger homes to smaller retirement homes due to lifestyle change or medical need, with “no payment for life”.  The convergence of inadequate savings, longer life spans and quickly rising medical expense will lead to the growth of reverse mortgages in general.  The change to this facet of the the “reverse for purchase” will have big implications for seniors, realtors and lenders.  More information will follow once the details of this product become clear (it will be available in January) but please contact me with questions.

Wells Fargo is the #1 retail originator of reverse mortgages in the country.


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