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Many states see a rise in reverse mortgages 2010-05-10 Colorado expects to see a rise in the number of seniors applying for reverse mortgage loans, the Denver Post reports. Reverse mortgages are becoming a retirement tool for some seniors over the age of 62 who may require additional income during their golden years. As the number of baby boomers is estimated to rise in Colorado and reverse mortgages are becoming less expensive to seniors, banks are reaching out to prospective borrowers to educate them on the investment, reports the Post. "Today, four out of five seniors own their own home outright," Wells Fargo national program manager Tim McDonald told the newspaper. "Even as they do, they have a lower median income than any demographic group," he added. Reverse mortgages are popular for some retirees who own or owe very little on their homes and want to take out a line of equity for their retirement needs. The funds received from a reverse mortgage may be used to supplement income, pay for medical bills or pay off debts. The loan is not typically repaid until after the borrower dies or sells his or her home.  |
