The Baby Boomer Target Audience
Did you know that there are now purchase reverse mortgage options available in addition to the more traditional reverse mortgage refinance options ? For homeowners who are unhappy with where they currently live due to the location or size , they may decide to sell their home and buy a new property with a reverse mortgage that will immediately get them monthly income advances shortly after they close escrow on the purchase .
Many real estate licensees and investors are not aware of the reverse mortgage purchase option which could create new ways to find clients or sellers as the Baby Boomer generation ( born between 1946 and 1964 ) continues to get older . Approximately 10,000 Baby Boomers per day surpass the age of 65 here in the US . By 2030 , all Baby Boomers will be at least 65 years of age .
For most American families , the bulk of their family ’ s overall net worth is derived from the equity in their primary home . This is especially true for Baby Boomers who are more likely than any other generational group to have tremendous equity in their homes with or without access to large amounts of cash or monthly income .
For marketing purposes , real estate licensees and other professionals ’ advertising campaigns are only as good as their target audience . Buyers and brokers should continue to focus on which customer or client prospects have ownership interests in properties that they may wish to sell at a later date . By assisting Baby Boomer prospects with ways to access funds from the equity in their homes by suggesting reverse mortgages , they and other family members and friends may later decide to sell the home to you or through you by way of a listing agreement .
" Approximately 10,000 Baby Boomers per day surpass the age of 65 here in the US . By 2030 , all Baby Boomers will be at least 65 years of age . "
Flexible Borrowing Options
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There are several different ways that a reverse mortgage borrower can collect funds from their lender at the time of closing or at a later date after the closing . Let ’ s take a closer look below at some of the more popular borrowing options :
● The borrower receives equal monthly advance payment amounts that fit their financial needs .
● The borrower receives a rather large lump sum of money at the closing and access to a line of credit at a later date such as 12 months later . If so , the borrower can decide how much extra money that he or she wants to borrow by writing a check off of the credit line or from an online location .
● The borrower chooses a fixed number of years to collect funds that have a preselected loan period or end date .
● With any reverse mortgage scenario , the IRS doesn ’ t consider these funds to be taxable income because the money is viewed as a loan .
● The homeowner remains on title during the entire reverse mortgage loan process up until the home is sold or the last remaining borrower passes away .
● Any interest accrued or deferred on a reverse mortgage is not usually deductible until the loan is paid in full with certain other tax restrictions . ( tax rules subject to change )
● Some borrowers may wish to place their family trust or some other legal entity as the borrower for the loan and on title to make it easier to pass on the remaining equity in the home to family members or other designated heirs . Please seek competent legal and accounting advice before making this decision .
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