Reverse mortgages gain in popularity

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

A reverse mortgage lender pays money to the senior citizen homeowner – it is the exact opposite of a traditional "forward" mortgage where the homeowner repays borrowed money to the lender. To qualify for a reverse mortgage, the homeowner must be at least 62. In the case of husband and wife, both co-owners must be 62 or older. If one co-owner spouse is not yet 62, he or she can renounce home ownership by signing a quit claim deed to the other spouse who is 62 or older. If title is held in a living trust, the trustor-beneficiary cannot be less than 62, although subsequent beneficiaries can be younger. Purchase Bob Bruss reports online. According to Peter Bell, president of the National Reverse Mortgage Lenders Association in Washington, D.C., reverse mortgage originations increased by 76 percent in 2003 compared to 2002. The reasons for their growing popularity are many, including (1) need for increased senior citizen monthly income, (2) stock market, pension, health benefit, an...