Do you know that only 57% of American citizens are considered as financially literate? This clearly shows that the rest does not have a clue about how to wisely plan their money. In such a situation, where people are not aware, myths are easily formed and believed by many. This is why many myths related to HECM for purchase reverse mortgage in Mahwah, NJ are also created. Here we would part the veil of ignorance from your eyes so that you can look at the facts and form your own opinion about reverse mortgages.
Only a Fraction of People Buy Reverse Mortgage
It is true that a few decades ago only a handful of people used to buy reverse mortgages. This was mainly because of two factors. First, people were unaware of this financial product, and second, the number of people above 62 years of age was way less. Now, as the aged population is growing, so is the demand of reverse mortgage surging. Read an article by Reuters here to understand what we mean.
The Reverse Mortgage Industry Is Very Small and Is Shrinking
There are hundreds of lenders that are affiliated with NRMLA. The number of these lenders is growing rapidly. This is because according to the UN, the population of aged people will reach around 2.1 billion in a matter of a few decades. This means that there is a huge market to capture ahead. So rather than leaving this business segment, you will notice that more people will be pouring into this sector. Also, the lender in this industry does not bear any risk. The home of the borrower can be sold to recover the amount lent over time. If the house is sold for less than what the lender has lent, then the difference is paid by the FHA, which is the insurer of all reverse mortgages.
Longbridge Financial is a reputed HECM reverse mortgage in Mahwah, NJ. It is approved by the Federal Housing Administration (FHA), operates in 46 states, and is committed to providing financial peace of mind to the elder generation.
