Reverse mortgages spike as older homebuyers upsize

Reverse mortgages spike as older homebuyers upsize

Reverse mortgages spike as older homebuyers upsize
More of America’s seniors are utilizing a reverse mortgage to purchase their next home, according to a new report. A study from Reverse Mortgage Funding LCC, shows that a quarter of 170 home buyers surveyed say they would not have been able to purchase their new property without using a reverse mortgage.

“This is incredibly important insight, especially when you consider more and more baby boomers are moving into bigger homes rather than downsizing,” said Rob Cooper, national sales leader at the organization. The study noted that the majority of borrowers who used a reverse mortgage to finance their purchase were able to buy a more expensive home in a more desirable location than they might have otherwise.

Reverse mortgages allow those 62 or older to purchase a home as a primary residence using the proceeds from a reverse mortgage loan with flexible repayment features.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.