With the housing market in flux, originators are looking for profitable possibilities to help borrowers and their bottom lines. In light of the recent happenings in the housing market, there is no better time to educate and enlighten lenders and borrowers about reverse mortgage and the numerous benefits it possesses.

In this economic climate, reverse mortgages bring variety to originators’ loan offerings. Still, the benefits that make reverse mortgages such a helpful product addition aren’t solely driven by interest rates or current macroeconomic developments. Of course, in an environment where forward mortgages will feel the sting of higher interest rates and decreasing refi activity, the fact that reverse mortgages are not interest-rate-sensitive loans is advantageous for now. However, originators must consider the big picture, which goes beyond the current economic climate—the reverse mortgage industry is massive and growing.

Reverse mortgages are increasingly being viewed as strategic tools to be used as part of a comprehensive retirement plan by financial advisors. According to a new study, reverse mortgages can even be used to lower market risk and boost portfolio growth. Like a home equity loan, a reverse mortgage allows borrowers to take advantage of their hard-earned equity in the form of a monthly payment, lump amount, line of credit, or a combination of the three. In addition, there are no monthly payments with a reverse mortgage. Instead, the loan debt is increased by the amount borrowed plus interest and fees.

Reverse mortgages aren’t often more complex to write than standard mortgages, but they do have some unique language and concepts. To read more about reverse mortgage and its benefits in the lending space, click the link below


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