As the 77 million baby boomers enter retirement at a rate of 10,000 per day, the reverse mortgage marketplace is potentially $1.9 trillion according to the Consumer Financial Protection Bureau, of which only about 10% has been penetrated to date. While this mortgage product has been around for decades, it’s affect on real estate markets has reached an influential point today and will remain so going forward.
The pros, cons, and myths of reverse mortgages aren’t fully known today. For one thing, new entries into the market are constantly redefining the rules. However, we need to start examining this increasingly new influence on the real estate marketplace as a whole.
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Pros of Reverse Mortgages
A reverse mortgage can increase the monthly income of a person over the age of 62. If you are considering a reverse mortgage, you will be eligible for more money based on the older you are, the more your home is worth, and the lower current interest rates are.