Reverse Mortgage Goes Younger
The reverse mortgage is a popular product. Even as mortgage trends move lower, the reverse mortgage is gaining in popularity. Part of the reason is that the reverse mortgage is a popular retirement planning tool.
But because it is associated with retirement planning, the reverse mortgage has had age requirements. Nearly all reverse mortgages insist that one be at least 62 in order to qualify. But that’s all changing.
Lender Lead Solutions is offering a reverse mortgage, called Simple60, that lowers the age requirement to — you guessed it — 60 years of age. This means that if you didn’t qualify for a reverse mortgage before, you might now. Inman News reports on this latest reverse mortgage product:
The Simple60 is geared to consumers who want to pull out $50,000-$75,000, typically for a specific purpose and a shorter period of time. While loan amounts vary depending on age and home value, a 60-year-old borrower with a home valued at $250,000 owned free and clear could qualify for $62,500 under the Simple60 program. Closing costs would be approximately $4,513, about one-third of the HECM closing costs. The interest rate on the Simple60 program is the 30-day LIBOR rate, plus 4 percentage points. Earlier this week that combined rate was 8.7 percent, similar to some home equity loans.
When carefully planned, a reverse mortgage can be a great source of supplementary income during retirement, assuming leaving the house to your heirs is something you aren’t particularly fussed about.
Tags: reverse mortgage, retirement planning, mortgage loan, mortgage loan blog,
reverse mortgage age, mortgage news, reverse mortgage age
November 15th, 2007 at 11:57 am
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