I have been invited to speak this coming Sat. May 2nd. on a local radio station in Ventura County; KVTA 1520 AM. The program will start at 8 in the morning (Hope that I don’t sound “sleepy”) and will last for an hour.
Listeners will be able to call in with their questions and I’m looking forward to answering them Especially those that involve the misconceptions about the loan and continue to circulate in the community in general, keeping possible applicants away from enquiring about it because they are scared about what they have heard.
With the financial crisis that has left no one untouched, Seniors have been particularly hard hit, as Social Security only increased this year by about $64.00. Yeah! Try living on that… Plus if they did have any pension or savings it has been reduced by about 40%. Just like the rest of us.
That was a figure that was mentioned to me several times this past week by individuals that I met at the two Senior Fairs/Expo’s where I participated. More people than in the past, were quite willing to discuss the mortgage and they asked me quite a few questions. What a delight!
Fortunately for them, they do have an alternative to supplement their income and it’s very, very easy to get it. Yes, a Reverse Loan and you know what? More of them are applying for it than any other time in the past and it’s changing lives and keeping them secure in their homes.
Every week I receive calls from individuals in their mid 50’s, asking me if they can apply for a Reverse mortgage because they can’t handle the payments that they have right now or they are unemployed and struggling financially.
The bad news for them is that I can’t. To qualify for a Reverse mortgage, the borrower(s) must be 62 years of age. As I frequently say, this is when is pays to be “old”.
I think the age 62 floor must be for actuarial reasons. I think a healthy 62 year old has a reasonable chance to hang on for another 30 years.
Perhaps it would make sense someday for a reverse mortgage that was available to younger people who have serious life shortening health problems. The logistics of calculating an individual life expectancy are probably beyond the risk tolerances and computer modeling abilities of the lenders at this time. — What do you think Lorraine? Jim from Linkedin Real Estate Experts.
http://www.linkedin.com/groups?gid=75954&trk=hb_side_g
The age limit of 62 has been pondered.
Perhaps that’s around the time we’ll deteriorate in our earnings. But at least it’s not so strict in the terms that once one of the spouses reach 62, they’re eligible for a reverse mortgage.
Jeffrey A. Jackson