For mortgages in reverse, it’s a new chapter

Posted by News Feeds

November 26, 2007

For mortgages in reverse, it’s a new chapter,

One part of the mortgage market is hot: reverse mortgages. And that’s giving older homeowners more options to tap the equity in their homes – but also is opening the door to more confusion and mistakes.

Only a year ago, homeowners interested in reverse mortgages had little to choose from beyond the plain-vanilla, government-backed products that have long dominated the market. Such mortgages essentially allow homeowners at least 62 years old to sell a large chunk of their home equity back to a bank or other lender in exchange for a lump sum, monthly payments or a line of credit.

Now nearly a dozen large banks and mortgage lenders have launched reverse-mortgage products with lower fees and larger payouts. One lender has reduced the minimum age requirement to 60; others are making loans on second homes and vacation rentals. “Jumbo” reverse mortgages – for houses valued at as much as $ 10 million – are becoming more common.

(more…)

Full post here Reverse Mortgage Loan Blog