60 is the new 62 for reverse mortgage standards

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The age requirement to qualify for a reverse mortgage keeps getting younger.

Melville, N.Y.-based Lender Lead Solutions has introduced Simple60, a new reverse mortgage product available to homeowners aged 60 and older.

Reverse mortgages offered to date have required that borrowers be at least 62 years old. And couples applying for a reverse mortgage must both meet the age requirement.

David Peskin, Lender Lead Solutions’ chief executive officer said he doesn’t anticipate Simple60 to be a substitute for home equity conversion mortgages but rather as an add-on for borrowers fitting in a specific niche.

“Census statistics tell us that the oldest of the baby boomers turned 60 last year, and more than 4.5 million seniors currently fall between the ages of 60 and 62,” Peskin said. “We feel this is the perfect time to introduce the Simple60 product.”

HECMs, or home equity conversion mortgages, are mortgages insured by the U.S. Department of Housing and Urban Development and account for nearly 85 percent of the reverse market.

Wells Fargo is considered to be the nation’s leading retail originator of reverse mortgages and announced it also has trimmed the margin it charges on the HECM adjustable by 50 basis points. Seniors who have already applied for a reverse mortgage with Wells Fargo will be offered the lower margin.

One Response to 60 is the new 62 for reverse mortgage standards

  1. When it comes to deciding whether a Reverse Mortgage is a good investment or not, many senior homeowners don’t really understand their options. For some, a reverse mortgage is a way out of debt, or a way to pay for a child’s education. Others see a Reverse Mortgage as just another way for the bank to make money. The truth of the matter is, deciding whether a Reverse Mortgage is a good investment or not depends on the borrowers unique situation. This was definitely true for my aging parents, but it turns out, they made a good decision. My siblings and I had no interest in “inheriting” my parent’s house and so it made sense for them to get a reverse mortgage. Once my parents pass on, the bank will get the house and all is well. In the meantime, the bank is paying them a nice monthly income which helps them pay bills and also to take a few vacations per year. They used M&T Bank’s Reverse Mortgage, and the number there is: (888) 253-0712.

    Log Homes
    January 4, 2008 at 10:05 am