Starkey Mortgage Offers Reverse Mortgages to Provide Lifestyle and Housing Options for Seniors
Starkey Mortgage has launched a Reverse Mortgage Division headed up by Branch Manager and Reverse Mortgage Specialist, Ken Witte. Reverse mortgages (HECM - Home Equity Conversion Mortgage) allow borrowers who are 62 years of age or older to use their home equity as a retirement asset. It can also be used to purchase a new home without paying all cash while enjoying the benefits of not having a mortgage payment.
Although Millennials are the largest segment of borrowers, according to the US Census the population of 65 years and older is expected to grow over 60% from 2010 to 2030, reaching a projection of 70 million seniors. Additionally, the National Reverse Mortgage Lenders Association‘s (NRMLA) RiskSpan Reverse Mortgage Market Index reports homeowners aged 62 and older saw their home equity increase to $6.3 trillion in the first quarter of 2017, an all-time high since the index was first published in 2000.
Proceeds from a reverse mortgage can be used to establish a standby cash reserve, supplement monthly income, delay taking social security benefits, make home modifications, pay off debt to reduce monthly expenses, or as a means to fund travel or retirement hobbies. Additionally, purchasing a home with a reverse mortgage can make it easier and more affordable for seniors to buy a home that better fits their lifestyle while preserving more of their savings and still not have a mortgage payment.
“We believe that offering a full range of loan products is best for our clients so we can assist everyone from the first-time borrower to the last-time borrower,” said Ken Witte. “A consumer is able to consider all loan options by working with a lender such as Starkey Mortgage that offers both forward and reverse mortgage options.”
As seniors age, they will consider a variety of options regarding their housing. The National Aging in Place Council says more than 90% of older adults would prefer to age in place rather than move to senior housing. However, 16 million seniors will be moving their permanent household in the next ten years. By taking advantage of their home equity, seniors may have the ability to move closer to family, reduce their square footage, enjoy the comfort of a single-story home, live in a neighborhood that provides easier access to medical care or other amenities, move into a 55+ community to enjoy social activities, remodel or build a new home that meets their current and future physical needs.