Reverse mortgages are becoming more attractive to seniors and they’re gaining respectability in today’s market, a CNBC article published this week says.
The report, published following the release of a new study conducted by the MetLife Mature Market Institute and the National Council on Aging, takes a look at the downward trend in borrower age for reverse mortgages.
“Whether it’s the ads, the financial necessity, or both—reverse mortgages have become attractive to more seniors,” the article states, citing volume data over time.
That attractiveness is expected to continue for younger borrowers, One Reverse Mortgage chief operating officer Gregg Smith told CNBC.
“We’ve noticed the age range for reverse mortgages getting ‘younger’ for us,” Smith said. “But when you figure that some 10,000 people a day retire in the U.S., we’re seeing this grow among all seniors and believe it will get even bigger in the next ten years.”
Another selling point for reverse mortgages, says CNBC: the gain of respectability.
“Those ads aside, reverse mortgages are getting rid of the bad reputation they’ve had in the past,” Mark Goldman, a real estate professor at San Diego State University told the news outlet. “The loans are backed by the government and more financial planners are looking at them as a viable option for their clients,” Goldman continues. “With mortgage rates low, and reverse loan fees dropping, they can make good sense.”
Read the CNBC article.
Written by Elizabeth Ecker