The data is in: Older homeowners may need relief
A recent Lending Tree survey examined the latest data from the U.S. Census Bureau to see how many homeowners still have a mortgage. The data was drawn from the nation’s 50 largest metro areas. What they found is 19% of homeowners 65 and older are still making monthly mortgage payments. As inflation continues to prove a stubborn economic drag on the pocketbooks of Americans, it’s safe to assume many of these homeowners find their monthly mortgage payment a significant burden to their monthly cash flow.
2 comments
The most common use of reverse mortgage proceeds is paying off an existing mortgage. So analyzing that market and marketing to those seniors who have mortgages should be a high priority in our marketing plans for 2023
Based on the data Shannon shared and HECM data plus estimated proprietary reverse mortgage data, about 9.4 million seniors have a forward mortgage on their principal residence. That is a very significant market even after reducing it for those who do not qualify now for a reverse mortgage or are completely biased against reverse mortgages.
Two decades ago, most originators did not effectively present the negative impact a forward mortgage has on cash flow. Restructuring mortgage payments using a reverse mortgage to conserve cash flow has never been effectively developed even in presentations to financial planners. For example, we tend to discuss costs before presenting.the solution with the costs built in and then disclosing the costs once the solution has been presented. Recently I saw Steve Resch present the solution first quite effectively.
Despite what we already know about reverse mortgages and how to present that information, most of us have much more to learn.
[…] **https://hecmworld.com/reverse-mortgage-news/10-million-seniors-have-mortgage/ […]