An article on reverse mortgages published in this week's New York Daily Times money section points out something that many people might not realize: the reverse mortgage has been around for a long time. This type of loan is just now starting to get the attention of the general public but it's not something that's new; it's been tried and tested over the years and has withstood those tests.
There are several reasons why reverse mortgages are currently getting so much attention. These include:
- Changing mortgage economy. Reverse mortgages are one of the few mortgages that have stayed stable as other mortgages have gone downhill.
- Baby boomers facing retirement. This generation is starting to deal with aging issues including the need for home equity after retirement.
- Education and awareness. There has been a push to educate people about the pros and cons of reverse mortgages and that has made more people interested in learning about them.
Despite that these things are just now bringing the reverse mortgage to light, it's an option that's been in the market for some time. This is important to note because it helps take credibility away from the idea that the reverse mortgage is just a fad.
Question of the Day: How long do you think the reverse mortgage has been on the market?
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