This week, Inman Real Estate Radio is pleased to welcome Mike Banner, the president of the Professional Mortgage Alliance and the founder of the American CE Institute. On this week’s show, Mike explains the big change in reverse mortgage products as well as a relatively new product called a purchase reverse mortgage.
- A traditional reverse mortgage allows consumers 62 and older to leverage existing home equity to eliminate their monthly mortgage payments; instead of their home equity increasing every month, it decreases.
- Today, consumers need to qualify to receive a reverse mortgage.
- Purchase reverse mortgages allow some senior consumers to finance a new place to live by using loan proceeds from a reverse mortgage.