Posted on May 26, 2020

Reverse Mortgage Specialists

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 ReverseMortgage 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.
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