Reverse Mortgage Borrowers Put More Money Up Front

d, Calif.-based Golden Gateway Financial has released new usage data from its online Reverse Mortgage Calculator that showed senior citizens are increasingly considering larger up-front payments, as opposed to more substantial monthly payments. [link=,920898.shtml][u] According to the company,[/u][/link] data from the second quarter shows similar numbers in terms of the types of individuals researching reverse mortgages. The average age of users, the percentage with forward mortgages and current self-reported home values all remained relatively flat between the first and second quarters, the company says. Golden Gateway Financial adds that there is a significant change in how people are considering receiving their reverse mortgage proceeds. For those considering a larger up-front payment, the amount continues to grow, with an increase of more than $12,000 from the second quarter of 2008 compared to the same period this year, while for those considering a monthly term payout, the amount they are planning to withdraw each month decreased by nearly 50% in that same period, according to the company. ‘As we approach what appears to be the bottom in the housing market for seniors, the new reverse mortgage loan limit and a home-price rebound means many could gain more now from a reverse mortgage than ever before,’ says Eric Bachman, founder and CEO of Golden Gateway Financial. ‘It's also evident that many of these same seniors are still feeling economic pressure and hope to alleviate it in the near term by taking larger up-front payments and smaller monthly amounts.’ SOURCE: Golden Gateway Fina


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