Reverse Mortgages Soar Amid Coronavirus Pandemic

Reverse mortgage is getting a second look as a possible alternative source of stability amid the coronavirus crisis, which has caused the 401(k)s to shrink away and the stock market to behave just like an oscilloscope. The growing equity that many seniors have in their property is one of the many reasons behind the reverse mortgage’s new appeal.

The National Reverse Mortgage Lenders Association said that homeowners who are at least 62 years old saw their housing wealth increase by $39 billion starting from the third quarter up to the fourth quarter of the past year, setting a new record of $7.23 at the end of the year.

The volume has increased substantially, at about 67% year over year growth for this specific sector. The customer of reverse mortgage loan is the older homeowner who are in their retirement, which recently got pummelled by around 20% and 30%. Most homeowners think they should be accessing their home equity instead of selling off their position or living off their retirement hoping that in time, it will all come back.

Even though economic crises are not new, the global depth as well as scope of the existing situation is unprecedented and has hit consumers, especially seniors, very hard. This has caused a lot of them to inquire about reverse mortgage loans.

Most of the borrowers of reverse mortgage Columbia are at the center of the crisis. Many of them are concerned about their financial health, stability, and ability to age in place. Many of them are wondering what they can do to hedge their risk during the current movements in the market and most are turning to the security and safety offered by reverse mortgages.

The inquiry levels are at levels that haven’t been seen in three years and can be considered as part of a much wider trend with more people turning to home equity to assist them in achieving a safer and more secure retirement.

One important aspect in driving this brand new consumer interest is working through the confusion by a lot of people about how the product works. Even though reverse mortgages have existed for several years, many consumers remain uncertain about the loan’s design.

There are still many misperceptions regarding reverse mortgage. One of the most common questions is how does it work. Aside from noticing a surge of inquiries from senior homeowners, more financial advisors are also asking questions and wanting to be educated about how reverse mortgage loan works so they could recommend it to their clients as an alternative to selling off their position.

The new push for educating consumers include making clarifications about the servicing difficulties in the conventional mortgage space, which is being buried in waves of forbearances. But many of today’s potential reverse mortgage borrower has already performed some form of homework in advance for any kind of lender conversation.

Call David Stacey, Reverse Mortgage Specialist, if you need to know more about reverse mortgage.

David Stacey
Reverse Mortgage Specialist
Columbia, SC 29205
(803) 592-6010
http://reversemortgagecolumbiasc.com/