Baby boomers fuel a boom in reverse mortgage programs.Residential Pacific Mortgage (RPM), a family-owned mortgage bank and broker based in Alamo Alamo Eighteenth-century mission in San Antonio, Texas, site of a historic siege of a small group of Texans by a Mexican army (1836) during the Texas war for independence from Mexico. , recently announced the launch of a reverse mortgage program led by reverse mortgage expert, Thomas Perkins. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the National Reverse Mortgage Lenders Association, in 2005, the volume of reverse mortgages increased by 112 percent from the previous year--and the demand is continuing to grow. "Baby boomers See generation X. are redefining retirement--it's now an active retirement consisting of travel and new hobbies--all of which has associated costs," said Perkins. "With the launch of our new reverse mortgage program, RPM is better accommodating our boomer-aged clients so they can capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the equity they've earned throughout their life and truly live their retirement to the fullest." A reverse mortgage is aptly named because the payment stream is reversed. Instead of the homeowner making monthly payments to the lender, the lender makes payments to the homeowner. A reverse mortgage is designed to enable seniors (62+) to convert part of their equity in their home into tax-free income tax-free income The income received but not subject to income taxes. For example, interest from most municipal bonds is free of federal income taxes and often from state and local income taxes as well. Compare tax-deferred income, tax-sheltered income. without having to sell their home, give up title or take on monthly mortgage payments. The funds from a reverse mortgage can be used for anything the borrower chooses, from supplementing retirement income to repairing or modifying a home to make it handicap friendly, taking a vacation or paying off existing debt. |
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