Reverse Mortgage - Your Home May Be a Pot of Gold

As the world awaits January 2008, when the first round of baby boomers turn 62 years old, investors from Washington to Wall Street are scurrying to add new, innovative products to the fast growing REVERSE MORTGAGE MARKET!!

It wasn't long ago that consumers had three reverse mortgage products to choose from: the FHA HECM, the FANNIE MAE HOME KEEPER, and the JUMBO CASH ACCOUNT. Now, seven new lenders have introduced competing programs, with more large investors positioning to move into this growing market.

As well as these private sector programs, new multiple-margin HECM offerings are now available, as well as an FHA/HECM FIXED rate option. This fixed rate option is something that has been long awaited by many consumers. Now, it is finally available.

In just the past six months (January thru June 2007) the reverse mortgage business has witnessed a rapid evolution not seen in over 17 years of existence. The reverse mortgage industry is finally beginning to mirror the traditional "forward" mortgage market, as we see more lenders launching a wider variety of products and pricing options designed to fit the needs of our senior customers.

A "Purchase Reverse Loan" is one of the exciting new products that are available today. This product is exciting because it accommodates those seniors would like to buy a new home, relocate so they are closer to family members or if they wish to down size. By using a reverse mortgage to buy a new property, it saves Seniors from having to get a mortgage at this point in their lives.

Another product that is creating a lot of excitement is using a reverse mortgage to purchase a second home. Now seniors that would like a warmer climate in the winter or a cooler climate in the summer can afford to do so, without monthly payments. It is also possible to have 2 reverse mortgages at the same time. This means you could have 2 homes with no monthly payments.

Please make sure you have a good understanding and confidence in the process of getting a reverse mortgage. There are many different concepts and different terminologies that you may not have head of before. Also, not all lenders offer the same choice of products and many of them limit the choices of investors you can go with.

As a final note, please be advised that you should look for a lender that is approved by the National Association of Reverse Mortgage Lenders (NRMLA). Currently, this is the only organization that oversees the ethical conduct of those in this industry.

By Virginia Berry