A reverse mortgage is not some old financial product; it was developed in 1961 for people who wanted to utilize the equity they’ve put in their home. Now, in the US, a reverse mortgage is only available to senior citizens aged 62 years or above. This gives them an additional financial resource so that they can lead the end days of their life without any financial worry. Though many aged people who own a house use reverse mortgage loans, very few of them know about its history. So here it is, a short history of the reverse mortgage.
The first ever reverse mortgage was sold in 1961 in Portland. This reverse mortgage was conceived and developed by Deering Savings and Loans in order to help widows by giving them a fixed stream of cash while they live in their own home until they are alive. Later in 1983, all the reverse mortgages were insured by the Federal Housing Authority on a request by Senator Kohn Heinz to make the system restraint of any shocks.
Before 1994, reverse mortgage lenders were not required to disclose the annual fees that they would charge to the borrower, but in 1994, Congress made it obligatory on every lender to disclose such fees to the customer before the signing of the reverse mortgage agreement. This facilitated customers to compare other lenders and pick the one they think offered a good value for their money.
Reverse mortgage loans were not so popular in the US until 2008. This was the time when most of the baby boomers began hitting the age of 62 and retiring. Therefore, by 2008, there was a huge surge in people who were buying reverse mortgage loans for their remaining life.
Longbridge Financial is a lending company that provides reverse mortgage loans and is approved by the Federal Housing Administration (FHA). It operates in 46 states and is committed to providing financial peace of mind to the elder generation. It is a member of NRMLA and is considered as the best reverse mortgage provider in New Jersey. For more information, you can call them at their toll-free number.
