Printer Friendly

Baby boomers fuel a boom in reverse mortgage programs.

Residential Pacific Mortgage (RPM), a family-owned mortgage bank and broker based in Alamo, recently announced the launch of a reverse mortgage program led by reverse mortgage expert, Thomas Perkins.

According to 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 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 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 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.
COPYRIGHT 2006 Hagedorn Publication
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Real Estate Weekly
Date:Aug 2, 2006
Words:218
Previous Article:Appraisers education fund gets boost.
Next Article:Kennedy Funding closes on Niagara Falls loan.
Topics:


Related Articles
Big boom theory.
Pennsylvania CPAs find baby boomers worried over finances.
Baby boomers: after world war II, returning Gls were eager to buy homes, start families, and pursue the "American dream". (American History).
Coming of age: as the Baby Boomer ages, long term care must gear up for its own 'boom'.
Not an easy sell: unlike previous generations, the Baby Boomer won't be as easy a draw to your long term care facility.
The layering effect: putting the Baby Boomers into proper perspective shows an evolving impact on senior living.
The boomers are coming--and bringing their spending power.
Ah, the bloom of youth.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters