4 Year Anniversary . . . Reverse Mortgages

mcj0439594000011This week I celebrate four years in the Reverse Mortgage industry and wow has it changed! I realize that four years isn’t a super long time as there are some people out there that have been doing it for 3 times that. But even in four years, the industry has grown, the product has changed, and the momentum is big. So big, that it is my opinion that we are nearing the tipping point in this vast market. Here is why:

1. Financial Planning Tool – among many (but probably not a majority), reverse mortgages have become a common topic of conversation. Clients are asking about them. This will grow as financial planners realize that this tool has a place in financial planning. Even now, though, there is a huge misunderstanding among many financial advisors as to what a reverse mortgage really is and what it can do.

2. More lenders – When I started just four years ago, there were only a few lenders that did reverse mortgages to any extent. Today, there are many more lenders who have entered the market. The competition is fierce.

3. Interest Rates – for the first15 years, reverse mortgages had a common spread of 1.5% and basically three different products: monthly adjustable, annual adjustable, and a Fannie Mae proprietary product. Today, we have live pricing with basically two different index rates, jumbo products (though today these are rarely offered; they will come back as the market improves), in addition to the annual adjustment rate product.

4. Marketing – Even four years ago you never heard anything about reverse mortgages. Today there are articles, advertisements, TV Ads, and radio ads running all of the time. It is becoming common language, but still very misunderstood.

I must say that even as the market and industry have grown, this is a fun place to be. It provides solutions for those who had no where else to turn. In doing four years of work within the industry, I do take some pride in the fact that I have not talked to any of my past clients who regretted their decision. They are now living in financial freedom that they have come to enjoy!

Explore posts in the same categories: General, Reverse Mortgage Industry

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