Boomers are Applying for Reverse Loans
With the recession, Stock Market losses, more of the Boomer generation is turning to Reverse loans to supplement their lost retirements. The average age of a borrower is now in the mid-sixties, whereas historically they have been in their early 70’s before they applied for the federal loan program.
Due to the fact that the loan does not have any prepayment penalites, it’s an ideal solution for those Boomers who may have also lost their jobs in the financial crash but still have a traditional mortgage and a payment to go along with it each month.
A Reverse loan doesn’t have a payment but the borrower can always pay the interest that accures on the loan if they should find themselves back in the job force. This loan certainly can give the option between losing a home or keeping it.
Here’s some news from Reverse Mortgage Daily about this topic:
During the National Reverse Mortgage Lenders Association’s road show last week, John Nixon, an executive at Bank of America said 62 year olds were the most common among recent reverse mortgage borrowers and I was a bit stunned.
According to RMI, the average age for borrowers has continued to decline over the last ten years. They write:
Whereas in 2000 there were more borrowers age 76 than any other age, that figure has shifted downward much more dramatically than the average age: 74 in 2003 and 71 in 2006 to 63 in 2009.