Home Equity Loans - Reverse Mortgages -You Know They Have Arrived When[By J Krohn]

Only recently has LeBron James of the Cleveland Cavaliers lived up to his superstar status. He has arrived.
Reverse mortgages have been around for years. They, for the most part, have had a low profile with only smaller lenders being involved. They have been the subject of ridicule and some serious misgivings.
Only recently has it dawned on the biggest lenders in the country what a huge market there is in reverse mortgages-78 million baby boomers in the next decade to be precise. Now the big lenders are getting into the fray in a big way. The race is on for market domination. They have arrived.
The nation's aging population, along with the rapid housing-price appreciation from 2000 to 2005, has led to record growth in reverse mortgages, which allow homeowners 62 years old and above to turn home equity into income they don't have to repay until they move out.
Reverse mortgages provide income to the homeowner in the form of a lump sum, monthly payments, or a line of credit while allowing them to stay in the home - the "reverse" of the way a traditional mortgage works borrower.
Now, two of the biggest lenders in the mortgage business Countrywide and Bank of America have gotten into the game. Their entry into the reverse mortgage market has given an air of respectability to the heretofore "dissed" reverse mortgage. They have arrived.
As we have noted before, unless you have a huge reason to do it now, you should seriously consider waiting until the dust settles. The reverse mortgage market is undergoing rapid changes with new products and new programs coming out.
The increased competition with new players will only make things better for the consumer. Don't make a mistake by moving too fast.
Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 50 articles to his credit. He is also the #1 author of Home Security Articles in the country.
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