The reverse mortgage is going mainstream, says a recent article by trade publication Banker & Tradesman. The borrowing age is dropping as younger consumers look to the loans to help manage the risk of their investment portfolios, the article writes based on a recent presentation to credit union industry members by representatives from MetLife.
Banker & Tradesman reports:
“…When reverse mortgages, officially known as home equity conversion mortgages (HECM), were created, they were designed for elderly homeowners who were house-rich but cash-poor, to draw on home equity to support living expenses.But reverse mortgages may become part of a growing trend to include home equity as an integral part of retirement planning and addressing income shortfalls in retirement. That’s according to a study authored by MetLife Mature Market Institute in partnership with the National Council on Aging.
Some younger borrowers whose assets and income may have been negatively impacted by the recession, are turning to reverse mortgages as a financial “bridge” to postpone the need to apply for Social Security…”
View the original article.
Written by Elizabeth Ecker