Facts - Seniors by the Numbers:
- By 2030, Senior population (65+) will double to 71.5 million people
- 80% of seniors own their home - 72% of those own it outright
- Those reaching age 65 have a life expectancy of an addtional
18 yrs
- The 75+ population is projected to increase from 18.3 million in
2006 to 23.6 million in 2030
- Median income for elderly in 2006 was $22,815
Common Misconceptions:
- “The lender takes the house”
- FACT: Homeowner holds title to the
property
- FACT: Reverse mortgage is a loan
- FACT: Upon death, works exactly like it would
w/any other mortgage
- “I can be thrown out of my home”
- FACT: Homeowner can stay in
home until loan “maturity event” occurs
- “I can owe more than my home is worth”
- FACT: MIP ensures homeowner
can never owe more than value of home
- “My heirs will be against it”
- FACT: Experience shows that heirs
are in favor of reverse mortgages
- “No Mortgage Interest Deduction??!!”
- FACT: Avoiding mortgage
payment > Paying and receiving the deduction
Who is a good candidate?
- 62 or older
- 50% equity in home
- Need extra cash
- • Poor credit – great credit…credit history does
not matter (only exception, cannot currently be in bankruptcy.)
- Want to stay in home for 5+ yrs
- Want to turn equity into “WORKING” dollars?
Who is NOT a good candidate?
- Short timeframe in the home
- Willing to move / downsize
- Spouse younger than 62
- Need >70% draw on equity
- Need a small sum
- Amount available to client is less then they need
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