Abstract
This report analyzes the marketplace for reverse mortgages, including demographic changes, economic factors, innovations and the impact of securitization, and consumer expectations concerning the housing market.
Reverse mortgages are a type of home equity loan allowing older borrowers (over 62) to convert a portion of the equity in their homes into cash while retaining homeownership. The non-taxable reverse mortgage funds, plus any accrued interest, are due when the borrower dies, sells or no longer uses the home as a primary residence.
This report looks at the key factors impacting the real estate and reverse mortgage lending marketplace, and summarizes both the positive and negative factors involved, as well as the segments of the market that should experience growth.
Key points in this report include:
- Consumers' familiarity and receptivity to reverse mortgages
- The overall financial situation of consumers nearing retirement
- Factors affecting the market for reverse mortgages, including the mortgage market overall
- The dynamic competitive marketplace for these types of loans
Within this report Mintel also presents the most salient findings of consumer research in the reverse mortgages market. Of particular interest is the market potential of reverse mortgages in terms of key selling points such as the ability to pay off existing mortgage, credit card or HELOC debt. Therefore, a key focus of this report is how much and what type of debt consumers have accumulated.
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